The rally marked a shift from the first half of 2026, when semiconductor stocks led market gains. The STI’s 8.8% advance marked its strongest monthly gain since November 2020. Institutional investors recorded net selling of $464m in July, bringing year-to-date outflows to $1.287b. Institutional buying was concentrated in transport, infrastructure and industrial stocks, led by Singapore Airlines, Keppel and SATS. However, market gains may increasingly depend on companies demonstrating earnings resilience, strong cash flows, dividend capacity and sustainable value creation.