The Straits Times Index (SGX: ^STI) Surge

The Straits Times Index (SGX: ^STI) has experienced an impressive surge this year, reaching a noteworthy 17-year high at 3,638 points on September 23, 2024. As the index climbs, several blue-chip stocks have also broken through to all-time highs, showcasing levels that investors have yet to encounter.

While such milestones are exciting, it’s crucial to evaluate the underlying businesses to ascertain their future performance. Let's take a closer look at four blue-chip stocks that are making headlines by surpassing their previous highs and assess whether they belong on your investment radar.

1. DBS Group (SGX: D05)

As Singapore's largest bank by market capitalization, DBS Group is well-known among investors. Recently, its stock reached an all-time peak of S$39.70 before settling at S$39.46, marking a remarkable 30% gain year-to-date. DBS showcased stellar results for the first half of 2024, reporting a year-on-year income rise of 11% to S$11 billion, driven by a 6% increase in net interest income. The bank's net profit hit S$5.7 billion, up 10% from the previous year, setting a new record. Due to strong earnings, DBS raised its quarterly dividend to S$0.54, translating to an annualized yield of 5.5%. CEO Piyush Gupta expressed optimism regarding the bank's capacity to weather economic downturns, noting a significant decrease in sensitivity to fluctuations in interest rates.

2. Singapore Technologies Engineering (SGX: S63)

Singapore Technologies Engineering (STE) specializes in engineering, defense, and technology solutions across various sectors, including smart cities and public security. The company’s shares reached a record high of S$4.78 and have increased by 21% year-to-date. Their robust first-half 2024 results showed a 13.5% rise in revenue to S$5.5 billion, with net profits soaring almost 20% year-on-year to S$336.5 million. STE's other notable achievement includes securing S$6.1 billion in new contracts, raising its total order book to S$27.9 billion. Additionally, the launch of a new "smart" shipyard will enhance operational capabilities while managing more complex projects.

3. OCBC (SGX: O39)

As Singapore's second-largest bank by market capitalization, OCBC also rode the wave of increasing interest rates. Its shares hit an all-time high of S$15.69, settling at S$15.64—a 21.1% increase for the year. For the first half of 2024, OCBC reported a 3% growth in net interest income to S$4.9 billion, while non-interest income rose 15% to S$2.4 billion. The bank’s total income saw a 7% year-on-year improvement, with net profit reaching a record S$3.9 billion. An interim dividend increase of 10% to S$0.44 was also announced, yielding a 5.5% return for investors. With plans to invest HK$1.5 billion to upgrade technology and infrastructure in Greater China, and an expansion in talent acquisition, OCBC is poised for continued growth.

4. Yangzijiang Shipbuilding (SGX: BS6)

Yangzijiang Shipbuilding, a major player in China's shipbuilding sector, experienced remarkable growth with shares hitting S$2.75, up 74% year-to-date. In the first half of 2024, revenue increased by 15.3% year-on-year to RMB 13 billion, while net profit surged by 77.2% to RMB 3.1 billion. With an outstanding order book worth US$20.1 billion, the shipbuilder has more than doubled its orders compared to early 2024. Recent collaborations with the Tsuneishi Group in Japan to foster decarbonization in maritime operations highlight its commitment to sustainability within the industry.

As the Singapore market shows signs of resilience and growth, investors may find these blue-chip stocks particularly appealing. The upward trends and strong earnings suggest a potential for further gains, making them candidates for any savvy investor's watchlist.