U.S. 10Y touches 5%, AI stocks tumble and oil stays above US$105 markets brace for tomorrow’s Fed decision Global markets enter Tuesday with three pressure points converging: U.S. borrowing costs briefly crossed 5%, oil remains above US$100, and the AI trade suffered a sharp reset overnight . The S&P 500, Dow and Nasdaq all closed lower Monday, while the Philadelphia semiconductor index plunged 5.9% . For Malaysian investors, there was one encouraging counterpoint: the FBM KLCI rebounded 0.66% to 1,698.01 , snapping four consecutive losing sessions despite the difficult global backdrop. 30-second market snapshot Market / Asset Latest 🇺🇸 S&P 500 7,619.98, -0.48% 🇺🇸 Dow Jones 52,421.20, -0.29% 🇺🇸 Nasdaq 26,186.41, -0.56% 🇲🇾 FBM KLCI 1,698.01, +0.66% 💵 USD/MYR ~4.04–4.05 🇺🇸 U.S. 10Y Treasury briefly >5%; ~4.98% later 🥇 Spot gold ~US$4,313/oz, -0.8% 🛢️ Brent US$105.68/bbl, +~1% ₿ Bitcoin ~US$79,150, +~2% Monday The dollar strengthened Mo...
Market Overview
- Singapore stocks opened lower on Wednesday, mirroring US market declines as concerns over chip trade restrictions and weak consumer confidence pressured tech stocks.
- Straits Times Index (STI) fell 0.23% to 3,906.84, with 122 gainers vs. 90 decliners.
- US markets struggled, with the Nasdaq falling 1.35% and the S&P 500 down 0.47%, as potential semiconductor export restrictions to China weighed on sentiment.
Singapore Market Performance & Sector Highlights
- Singapore equities gained 6% in the past three months, outpacing ASEAN markets, driven by:
- Financial sector (+13%), supported by rate alignment with the US.
- Telecom & Utilities sector growth, fueled by AI-driven data center expansion.
- Government bond yields remain stable, benefiting from steady inflation and interest rate trends.
Stocks to Watch
OCBC Bank (O39.SG):
- Q4 net profit rose 4% YOY to S$1.69 billion, but missed analyst expectations of S$1.78 billion.
- Announced final dividend of S$0.41 per share + special dividend of S$0.16 per share, as part of a S$2.5 billion capital return strategy.
- Shares fell 0.5% to S$17.60 on Tuesday.
City Developments (C09.SG):
- Net profit plunged 54.7% to S$113.5 million in 2H2024, with revenue dropping 23.6%.
- Full-year profit fell 36.6% to S$201.3 million.
- Requested a trading halt on Wednesday.
SingPost (S08.SG):
- EGM set for March 13 to approve the A$1.02 billion divestment of its Australian business.
- Expected to gain S$289.5 million from the sale.
Food Empire (F03.SG):
- Net profit fell 3.2% to US$28.9 million, despite 10.4% revenue growth to US$251.1 million.
- Proposed dividend of S$0.08 per share (including special dividend of S$0.02).
- Shares declined 1% to S$0.975 before the announcement.
Singapore Land Group (U06.SG):
- Net profit surged 76% to S$180.5 million in 2H2024, with revenue up 9% to S$390.5 million.
- Earnings per share (excluding property fair-value gains) rose to S$0.093.
Summary:
- Singapore stocks open lower, following global tech weakness.
- Financial and telecom sectors drive Singapore’s 6% market growth in recent months.
- OCBC posts profit growth but misses forecasts, announces capital return plan.
- City Developments faces profit decline, while SingPost prepares major asset divestment.
Comments
Post a Comment