Markets move in cycles, and sentiment can shift faster than fundamentals.
After a period of caution, signs are emerging that risk appetite is returning.
When markets turn up, leadership matters, as not every stock rises equally.
We look at the types of stocks that could ride this upswing, and highlight what makes them stand out.
Singapore Exchange Limited (SGX: S66, SGX) — High-Quality Market Leader
SGX has garnered a reputation of being a long-term dividend income player, serving as Singapore’s sole approved and regulated stock exchange.
This dominant market position allows SGX to generate robust cash flows with minimal capital expenditure.
It posted its strongest half-year revenue and net profit yet, with its first half of fiscal year 2026 (1HFY2026) net revenue (excluding treasury income) rising 10.1% year on year (YoY) to S$636.6 million from S$578.0 million a year ago.
Adjusted net profit rose 11.6% YoY to S$357.1 million from S$320.1 million the year before.
The board declared an interim quarterly dividend of S$0.110 per share.
This brings dividends in 1HFY2026 to S$0.2175, up 20.8% YoY, translating into an adjusted payout ratio of about 65%.
This dividend payout is underpinned by SGX’s strong cash generation, with free cash flow of S$773.6 million in FY2025.
Following the recent rally, SGX is trading at a trailing price-to-earnings (P/E) ratio of about 29.0 times.
Investing in a quality stock like SGX would position you well for when the stock market stages a recovery.
SATS Ltd (SGX: S58, SATS) – Cyclical Recovery Play
Like many cyclical companies, SATS rebounds as economic activity improves.
Since the recovery of global air travel following the pandemic, its business has also benefited in the area of cargo volumes, and improving operating leverage.
SATS’ recovery is evident in its revenue: 1HFY2026’s was 9.1% higher than in 1HFY2025, at S$3.08 billion.
The group’s 1HFY2026 net profit came in at S$149.8 million, up 11.2% from S$134.7 million a year ago.
SATS’ interim dividend of S$0.02 marks a 33% increase from S$0.015 per share a year ago.
However, higher inflation and a potential economic slowdown could constrain its upside.
Despite this, the stock remains a pick worth considering for investors who want to get a slice of the exposure to the uptick in air travel and aviation services.
Frasers Centrepoint Trust (SGX: J69U, FCT) – Rate-Sensitive Beneficiary
FCT is a quality REIT that offers defensive and predictable income from essential services.
This is mainly due to its bread and butter: suburban retail malls that serve daily consumer essentials.
As at 31 December 2025, 97.3% of the trust’s portfolio comprises retail malls, with offices making up the rest.
FCT also stands to benefit from refinancing at lower rates, with S$421.3 million in debt due in FY2026.
The trust has an average debt maturity of 3.16 years, with an average cost of borrowing of 3.5%.
FCT has continued paying dividends since 2006, while increasing its distribution per unit (DPU) by 0.6% YoY to S$0.12113 for its fiscal year ended 30 September 2025 (FY2025).
As interest rates fall, FCT looks to be a REIT that could benefit from easing financial pressures, backed by its structurally leveraged balance sheet and exposure to lower borrowing costs.
iFAST Corporation (SGX: AIY) – Structural Growth With Momentum
iFAST Corporation is one of the fastest rising stars in Singapore’s fintech sector.
The stock’s meteoric growth was boosted by surging assets under administration (AUA) and recurring fee income.
iFAST has also banked on strategic growth initiatives such as the Hong Kong eMPF rollout and expanding into digital banking.
Besides its recent 52-week share price peak of S$11.06 on 28 January 2026, its latest set of results reflected robust growth.
3Q2025 gross revenue reached S$135.82 million, up 37% YoY.
iFAST also posted a net profit of S$26.01 million, an increase of 54.7% from a year ago.
The company announced a third interim dividend of S$0.023 per share for 3Q2025, a 53% increase from a year ago.
Guidance points to a potential payout of S$0.082 for FY2025, which equates to a 39% YoY increase, pointing towards greater confidence in iFAST’s cash flow stability.
iFAST stands out as a fast grower with momentum.
For investors willing to accept short-term swings, the stock offers a way to gain from the sector’s ongoing expansion.
How to Tell If a Market Upswing Is Sustainable
A clear sign of a sustainable market upswing is broad participation, where gains extend beyond a small group of market leaders.
Look for earnings that truly support those climbing prices.
When fundamentals align, the gains feel more genuine.
Watch for consistent improvements, whether in the larger economy or in individual company results.
Staying cool-headed about valuations while avoiding diving headfirst into the latest stock could avert disasters.
Keeping portfolios balanced and diversified is often the best way to manage market swings.
However, also be prepared to stay nimble and reassess holdings when tides change.
Get Smart: Let the Market Work for You
Market upswings give plenty of room for opportunity, but they also put discipline to the test.
Investors who keep an eye on quality, fundamentals, and valuation tend to navigate rallies more effectively than those chasing momentum.
Preparation matters more than prediction — understanding which businesses can sustain gains is key.
When markets turn up, the goal isn’t to catch every move, but to stay invested in the right companies as the cycle unfolds.
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Find out which Singapore blue chips have weathered past chaos…and why they could be your portfolio’s anchors in the next wave of downturn. Download the report free.
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Disclosure: Joseph G. does not own any of the shares mentioned.
