Small and mid-cap stocks could ‘stage a catch-up rally’ amid ‘strong catalysts’With global funds and developed-market funds still maintaining light positions in Singapore stocks, JPMorgan analysts believe that inflows “have room to increase”. This comes as the STI broke 4,900 for the first time on Tuesday, after consecutive records in 2025. Factors driving the STI’s rise in 2026 include “upbeat earnings outlooks, a strong Singapore dollar, high dividends and (the Republic’s) status as a safe haven amid global geopolitical uncertainties”, said JPMorgan analysts led by Khoi Vu. “SMID stocks have seen liquidity and coverage increase meaningfully in 2025. With global funds and developed-market funds still maintaining light positions in Singapore stocks, the analysts believe that inflows “have room to increase”.