After two years of low liquidity, the Singapore market has come back to life. We have seen a revival across the board, with many Singapore-listed stocks reaching all-time highs Straits Times Index (SGX: ^STI) finally crossed 5,000 point milestone earlier this year. Every market cycle produces some extraordinary winners. However, as prices climb, the million-dollar question is: can these winners continue, or are investors late to the party? We examine the characteristics that can separate sustainable compounders from stocks that have already peaked.
Why do some stocks keep winning?
Often, strong share price performance reflects improving fundamentals rather than mere luck. Real market leaders don’t just thrive on hype, their share prices rise as earnings continue to grow, justifying high valuations. Momentum only becomes dangerous when prices outpace business reality and market expectations are no longer supported by actual performance…
