As 2026 unfolds, the Singapore market has experienced a notable rally in several leading blue-chip companies.
For investors with a long-term horizon, observing a portfolio hit a 52-week high frequently sparks an internal conflict: the gratification of seeing capital gains against the anxiety of a potential downturn.
The essence of this quandary is determining whether the current share price signifies a valuation peak or a stable foundation for future appreciation.
This analysis focuses on three constituents of the Straits Times Index – Keppel Ltd, ST Engineering, and CapitaLand Investment – all of which have recently achieved new 52-week highs.
Why 52-Week Highs Trigger the Urge to Sell
The psychological temptation to sell at new peaks is incredibly strong.
Investors dread the prospect of relinquishing hard-earned profits, envisioning a sharp correction that erases months of gains.
This apprehension often originates from an overemphasis on historical prices instead of future earnings capacity.
Media commentary frequently intensifies these worries.
Reports discussing market tops and excessive valuations foster a sense of immediacy, even when the core business fundamentals remain robust.
However, the share price by itself is an inadequate metric for deciding whether to sell a stock.
A stock priced at $10 can be overvalued if the underlying business is faltering, whereas a stock at $100 might be undervalued if its earnings are growing rapidly.
What Actually Matters More Than Price
Rather than fixating on share price movements, long-term investors should concentrate on earnings growth and the durability of cash flows: Is the company becoming more profitable? Are those profits being converted into actual cash?
The strength of the balance sheet and disciplined capital allocation are equally critical.
Firms that employ capital effectively—whether through reinvesting in the business, strategic acquisitions, or returning capital to shareholders—typically create compounded value over extended periods.
Dividend sustainability offers another important indicator.
Increasing payouts that are supported by growing earnings often signal management's confidence in the company's future.
Lastly, investors should assess whether the business is propelled by long-term industry trends or is merely benefiting from transient market sentiment.
Keppel: The Transformed Conglomerate
Keppel's rise to a 52-week high of S$11.06 mirrors the market's increasing faith in its evolution from a cyclical industrial conglomerate into a global asset manager.
The "New Keppel" is being valued less on its physical asset base and more on its capacity to produce recurring, high-margin fee-based income.
The implementation of its capital recycling strategy has been highly active.
Since October 2020, Keppel has disclosed asset monetizations totaling approximately S$14 billion.
A recent illustration is the sale of its stake in 800 Super at an enterprise value exceeding S$600 million, which generated a mid-teens internal rate of return (IRR) and 20% EBITDA growth over its three-year holding period.
The upcoming major catalyst is the S$1.3 billion divestment of the M1 telecommunications business.
This transaction is anticipated to release nearly S$1 billion in cash, with management suggesting a portion will be distributed to shareholders.
This methodical strategy is resulting in industry-leading returns.
Since January 2022, Keppel has returned S$6.6 billion to shareholders, achieving an annualized Total Shareholder Return (TSR) of 38.0%—substantially outperforming the STI's 14.5% return over the same timeframe.
For long-term investors, the key question is whether these growth drivers are permanent.
While execution risks in large infrastructure projects and the continued monetization of non-core assets remain important factors to watch, Keppel's positioning in line with global trends like energy transition and digital infrastructure points towards a sustainable growth path.
ST Engineering: Defensive Growth with Record Backlogs
ST Engineering has recently traded at unprecedented levels, fueled by a global upswing in defense expenditure and a strong rebound in commercial aviation.
The stock's 52-week high of S$9.69 indicates a significant revaluation from its lows in 2025.
The cornerstone of ST Engineering's valuation is its record order backlog, which reached S$32.6 billion as of the third quarter of 2025, providing revenue visibility stretching beyond 2028.
Revenue for the first nine months of 2025 hit S$9.1 billion, a 9% year-on-year (YoY) increase, with the Commercial Aerospace segment growing 11% to S$3.6 billion and Defence & Public Security rising 9% to S$4.0 billion.
New contract wins for 2025 amounted to S$18.7 billion, surpassing 2024's S$12.6 billion by 49%; the Defence & Public Security segment alone contributed S$2.5 billion in the fourth quarter, cementing its status as a primary beneficiary of geopolitical tensions and rising global defense budgets.
Dividend growth highlights management's confidence.
ST Engineering declared a third-quarter interim dividend of S$0.04 per share and intends to propose a final dividend of S$0.06 plus a special dividend of S$0.05, bringing the total dividend for 2025 to S$0.23.
The group will also adopt a progressive dividend policy starting in 2026, with dividend increases linked to earnings growth.
For long-term investors, ST Engineering represents a defensive stalwart with high earnings predictability.
The primary risks to monitor involve cost inflation and potential delays in executing large contracts.
CapitaLand Investment: Asset-Light Transformation
CapitaLand Investment (CLI) functions as one of Asia's largest diversified real estate investment managers, overseeing S$120 billion in funds under management.
The company manages eight listed REITs and 49 private funds across its fee income-related business and real estate investment activities.
The stock's recent peak of S$3.10 signifies a substantial recovery, propelled by strong fundraising activity and expansion into thematic real estate sectors such as data centers and logistics.
Fee-related revenue increased by 7% YoY to S$900 million in the first nine months of 2025 (9M2025), driven by higher event-driven fees and the launch of new funds.
The lodging business signed contracts for approximately 13,500 units across 64 properties, representing a 32% increase in units compared to the previous year.
Year-to-date, the group raised S$3.7 billion in total equity across its listed and private funds and monetized S$2.2 billion in assets.
A significant milestone was the listing of China's first international-sponsored retail C-REIT in September 2025, which raised RMB 2.3 billion.
CLI maintains a solid balance sheet with a net debt-to-equity ratio of 0.43x.
While the broader real estate sector faces challenges from interest rate fluctuations, CLI's asset-light business model offers a degree of insulation.
At its current valuation, the stock represents an investment opportunity tied to the long-term growth of private equity real estate in Asia.
When Selling Makes Sense—and When It Doesn’t
Divesting at a 52-week high is a logical decision when the stock's valuation becomes disconnected from the company's realistic future earnings power.
Selling is also a wise move if a single holding grows to represent an excessively large portion of your portfolio, thereby increasing concentration risk, or if the fundamental quality of the business starts to deteriorate even as the share price climbs.
Additionally, selling is justified if the capital can be reinvested into an opportunity with a demonstrably better risk-reward profile.
On the other hand, maintaining a position in a stock at record highs is often the superior strategy when earnings and cash flows continue to grow consistently.
Investors should typically hold if dividends remain well-supported by rising profits, or if the company continues to benefit from long-term, structural industry tailwinds.
Finally, holding is the correct approach if the stock continues to serve its intended purpose as a core, diversifying element within a broader investment portfolio.