Equity investors expecting a big boost for Singapore’s benchmark index from its upcoming annual budget could be disappointed: heavyweight blue chips are unlikely to benefit from government largesse.

Aimed at reversing the nation’s worst economic contraction since it became independent in 1965, Feb 16’s budget is set to focus on the pandemic-hit travel sector or firms with mandates in line with green or digital initiatives, say analysts.

That’s bad news for the benchmark Straits Times Index, which has risen 2.9% so far this year. The gauge has significantly underperformed the broader MSCI Asia Pacific Index even though Singapore has managed to contain the spread of the virus.

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