Maybank has lowered its year-end 2026 target for the Straits Times Index (STI) to 5,500 points, citing concerns that weak initial public offering debuts could dampen market sentiment.
The bank’s head of research noted that despite the downward revision, the fundamental case for a re-rating of Singapore equities remains solid.
The adjustment reflects growing caution around primary market activity, which has contracted sharply in the first half of 2026.
Fewer companies are taking the step to list on stock exchanges, a trend that has persisted even as global markets have shown signs of recovery in other sectors.
This decline in IPO volume reduces the influx of fresh capital and investor interest that typically supports broader market momentum.
The timing of the cut aligns with broader global trends in technology equities, where high-profile listings have faced delays.