The SPDR STI ETF (SGX: ES3) tracks Singapore’s Straits Times Index (SGX: ^STI).
It returned 13.1% for the first half of 2026 – a solid six months.
Three blue-chips did far better.
Singapore Exchange (SGX: S68) returned 42.8% over the same period.
OCBC Ltd (SGX: O39) returned 28.2%.
Singapore Technologies Engineering (SGX: S63) returned 25.3%.
Each beat the index by more than 12 percentage points.
Out of 30 STI names, these three led, but why?
Share prices do not run ahead of the pack by accident.
Why did SGX lead the field?
SGX runs Singapore’s only stock market.
That is a rare position to hold.
For the first half of its fiscal year ending 30 June 2026 (1H2026), the bourse operator reported net revenue of S$695.4 million, up 7.6% year on year (YoY).
The Equities – Cash division led, climbing 16.2% to S$223.9 million as securities daily average traded value rose 19.5%.
FICC rose 12.5% to S$178.9 million on higher OTC FX, commodity and currency derivatives volumes.
A busier market means more trades.
More trades mean more revenue for the exchange.
Investors watched the volumes build through the year.
The headline profit told a quieter story.
Net profit attributable to shareholders was near-flat at S$342.7 million, up 0.8% YoY.
Operating profit jumped 10.8%, with lower non-operating gains and a S$15 million goodwill impairment tied to Scientific Beta offsetting the gain.
On an adjusted basis, net profit rose 11.6% to S$357.1 million.
SGX generated net cash from operating activities of S$363.7 million for the half.
It declared an interim quarterly dividend of S$0.110, lifting total dividends for the half to S$0.2175, up from S$0.180 a year ago.
Management is confident of holding its 0.25 cent quarterly dividend increase through the end of FY2028.
That gives income investors something to hold on to.
What drove OCBC’s climb?
OCBC is Singapore’s second-largest banking group.
Lower rates were meant to squeeze it.
The bank found another way.
For the first quarter of 2026 (1Q2026), total income hit a new high of S$3.8 billion, up 5% YoY.
Net interest income (NII) fell 5% to S$2.2 billion as benchmark rates eased across SGD, HKD and USD.
Net interest margin (NIM) narrowed 28 basis points to 1.76%.
Customer loans grew 9% YoY on a constant currency basis to S$347 billion, which cushioned the squeeze.
The real engine sat elsewhere.
Non-interest income surged 23% YoY to S$1.6 billion, now over 40% of total income.
Net fee income climbed 24% to S$675 million, led by a 34% jump in wealth management fees.
A regional wealth boom did the heavy lifting while margins slipped.
Net profit attributable to shareholders rose 5% YoY to S$2 billion.
OCBC does not declare a dividend in the first quarter; its interim dividend comes with the half-year results.
An absent first-quarter payout is the norm, not a cut.
Management kept its 50% ordinary dividend payout guidance, and the S$2.5 billion capital return plan stays on track for FY2026.
How did ST Engineering earn its spot?
ST Engineering builds for defence, aerospace and urban markets in more than 100 countries.
Demand across all three showed up in the numbers.
Group revenue rose 11% YoY to S$3.3 billion for 1Q2026.
Stripping out LeeBoy, divested in September 2025, rebased revenue grew 15%.
All three segments delivered: Defence & Public Security rose 13% on a rebased basis to S$1.4 billion, Commercial Aerospace jumped 15% to S$1.3 billion on engine MRO and nacelle deliveries, and Urban Solutions & Satcom surged 18% to S$525 million, with Satcom growing more than 30%.
The order book is the standout.
ST Engineering secured S$4.8 billion in new contracts in the quarter.
That took its order book to S$34.5 billion as at 31 March 2026.
Of that, S$8.0 billion is due for delivery over the rest of the year.
Forward visibility like that is hard to ignore.
One caveat: quarterly business updates do not disclose profit or cash flow figures.
Management noted net profit growth outpaced rebased revenue growth.
The exact numbers are not out.
ST Engineering declared a first-quarter interim dividend of S$0.04 per share.
For FY2025 it paid S$0.23 per share in total, which included a S$0.05 special dividend.
Get Smart: strong returns are backward-looking
Each of these three rode a distinct tailwind.
SGX gained from a busier trading market.
OCBC leaned on a regional wealth boom while rate cuts pressured margins.
ST Engineering rode defence and aerospace demand and a record order book.
The other 27 STI names did not share those tailwinds in equal measure.
Here is the part worth remembering.
A 42.8% return tells you what has already happened, but it says nothing about what comes next.
The share price has already paid for the good news you can see today.
Free cash flow is the number to keep watching, not the last half’s price chart.
Ask whether the earnings and cash flows behind these businesses can keep delivering.
That answer decides your income, not the past six months.
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Disclosure: The Smart Investor owns shares of SGX and OCBC.
