𝐌𝐚𝐫𝐤𝐞t 𝐔𝐩𝐝𝐚𝐭𝐞 *29/10/26*
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STI: 5397 (-18) | HSI: 23041 (-170) | Dow: 52,475 (+98) | S&P: 7,744 (+21) | Nasdaq: 26,550 (+72)
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*US Markets Overnight*
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*Fed Pauses, AI Keeps Going… For Now!*
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The Fed didn’t raise interest rates, but that doesn’t mean we are out of the woods yet. What was worth noting was that bond yields actually went up after the decision. Meanwhile, AI and memory stocks continued their rally. Looks like investors are still willing to chase growth, even with borrowing costs staying high. Wall Street ended higher for the third straight session. The Dow gained 0.2%, S&P 500 rose 0.3% and Nasdaq added 0.3%.
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As expected, the Fed kept interest rates unchanged at 3.75% to 4%, with two officials actually voting for a hike. And here’s the thing. Markets are now pricing in an 85% chance of a rate hike in December. 😬 So really, this may just be a pause, not the end of tightening.
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The 10-year Treasury yield climbed back to around 5.04%. Still pretty high! Meanwhile, AI and memory stocks were having another good day. *SK Hynix* surged 13% in US trading after reporting strong earnings, while Micron gained 6%. Looks like the demand for AI memory chips is still going strong. And unlike some of the AI companies borrowing heavily to fund expansion, memory makers are already seeing the benefits in their earnings.
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*Oracle* jumped 11% after projecting revenue of at least US$225 billion by fiscal 2030. More importantly, it expects capital spending to peak before cash flow improves. Investors clearly liked hearing that there could be some light at the end of the AI spending tunnel. 😅 Elsewhere, *Vertiv* surged 16% on strong results and a better outlook, while Wendy’s jumped 15% following a takeover proposal. But not everyone had a good day. Enphase plunged 16%, Logitech fell 12% and Robinhood lost more than 3%.
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Oil also moved higher. WTI gained 2.6% to US$102.55, while Brent climbed to around US$115.10, as Middle East tensions continued to worry investors. Now, the next big test is corporate earnings. Microsoft and Alphabet reported after Wednesday’s close, while Amazon is due on Thursday.
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*What’s Brewing Today*
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*Nanofilm: Small Growth. Bigger Comeback?*
I think it is no surprise to most of you out there. *Nanofilm Technologies ( $Nanofilm(MZH.SI))* is one counter I have been keeping an eye on for quite some time. At first glance, its 3Q results may not look exciting, with revenue growing just 2% to S$74 million. But look closer! Gross margin improved from 40% to 45%, while industrial equipment and nanofabrication revenue jumped 66% and 120% respectively. Encouraging signs that its diversification beyond consumer electronics is gaining traction. Interestingly, the chart is also showing signs of stabilising after a steep correction, with the stock recovering to around S$0.835. The next hurdle? Resistance around S$0.85, and further north, S$0.95, a confluence of a resistance level and the 200MA. Still early days, of course, but with improving fundamentals and a potentially recovering chart, could investors be starting to take another look at Nanofilm? Worth watching!
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Quite a few other small caps that released a good set of earnings / business updates, including *Japan Food ( $Japan Foods(5OI.SI))* and *MTQ Corporation ( $MTQ(M05.SI))*. This morning, *Keppel ($Keppel(BN4.SI))* and *CICT ( $CapLand IntCom T(C38U.SI))* also released tgoo sets of earnings : business updates. *Ultragreen ai ( $ULTRAGREEN AI USD(ULG.SI))* also handed in a good report card, but lower forward guidance due to competition. All the load-down below. As it was released just this morning, I haven’t had the time to do deep dive. All the load down below for gour reference. 😊
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*Happening Today*
SG Earnings:
— Ultragreen^, CICT^, CDLHT^, FEH^, Capland Ascendas, Starhill
SG XD:
— Chuan Hup: S$0.005
— Frasers Centrepoint Trust: S$0.06214
— Lum Chang Creations: S$0.01
— Suntec REIT: S$0.02017
EU:
— ECB Interest Rate Decision / ECB Press Conference / German CPI (MoM) / German CPI (YoY)
US:
— GDP (QoQ) / GDP Price Index (QoQ) / Core PCE Price Index (MoM) / PCE Price Index (YoY) / Personal Income (MoM) / Personal Spending (MoM) / Initial Jobless Claims
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*SG Stock News*
⭐️— *CapitaLand Integrated Commercial Trust* 9M2026 net property income rose 10.4% YoY to S$965.4 million, supported by acquisitions, with portfolio occupancy at 96.1%, positive retail rental reversion of 4.6% and gearing at 39.7%.
⭐️— *Keppel* 9M2026 core net profit rose over 20% YoY, with recurring income growing more than 10%, asset management fees up 18% to S$354 million and S$3.7 billion in announced asset monetisations, exceeding its full-year target.
👍— *NTI Nanofilm* 3Q2026 revenue rose 2% YoY to S$74 million, with gross margin improving from 40% to 45%, supported by 66% growth in industrial equipment revenue and 120% growth in nanofabrication revenue.
👍— *Wilmar International* 3Q2026 net profit rebounded to US$281 million from a US$347.7 million loss a year ago, although core net profit fell 25.2% to US$267.3 million amid higher raw material costs and weaker soybean crushing margins.
👍— * UltraGreen.ai...* 9M2026 revenue grew 35% YoY to US$131.8 million, but rising US competition prompted a cut to FY2026 revenue guidance below US$175–185 million, alongside plans for a US$30 million share buyback and a minimum 30% annual dividend payout.
— *Mapletree Logistics Trust* 2QFY2027 DPU remained largely flat at 1.816 cents, with net property income rising 1.0% to S$154.8 million, portfolio occupancy at 96.4% and gearing improving to 37.5%.
— *Mapletree Logistics Trust* plans to redevelop 9 and 15 Changi South Street 2 into a five-storey Grade A logistics facility, increasing gross floor area by 34% to nearly 500,000 sq ft, with completion targeted for 2Q2029.
— *Digital Core REIT* reported approximately US$35 million in 9M2026 distributable income, broadly flat YoY, while its proposed portfolio reshuffle into Japan and Singapore is expected to lift DPU by 4% and reduce leverage by around three percentage points.
— *Landmark REIT* 3Q2026 net property income rose 7.6% YoY to IDR425.2 billion, but declined 1.8% to S$30.5 million in Singapore dollar terms due to rupiah weakness, with gearing at 39.2%.
👍— *Japan Foods Holding* returned to profitability in 1HFY2027 with a net profit of S$0.2 million versus a S$3.3 million loss a year ago, despite revenue falling 18% to S$30.2 million, as restaurant closures helped cut operating expenses by 28.3%.
👍— *MTQ Corporation* swung to a 1HFY2027 net profit of S$4.85 million from a S$2.03 million loss, helped by a S$7.6 million disposal gain, while revenue grew 8% to S$24.9 million amid continued Middle East challenges.
👍— *MetaOptics* secured shareholder approval for a share buyback mandate while remaining on track for laser writer deliveries by end-2026 and securing a co-packaged optics design order from a major US foundry customer.
👍— *EGP Energy* eyes overseas expansion to power growth as shares climb after IPO
👍— *China Kunda Technology* issued a profit guidance announcement for 1HFY2027, expecting to return to profitability and record a net profit for 1H2027, compared with a net loss for the corresponding six months ended 30 September 2025.
— *Keppel* joined the Vietnam International Financial Centre as an inaugural member, strengthening its participation in Vietnam's developing financial services ecosystem.
— *AEM Holdings* was selected among 24 companies for Enterprise Singapore’s inaugural Champions of AI Programme, supporting its plans to integrate AI across R&D, operations and corporate functions over the next three to five years.
— *Golden Agri-Resources* reaffirmed its commitment to cooperate fully with Singapore authorities and independent assessors investigating transboundary haze, following a 28 October meeting with government ministers on the proposed independent assessment framework.
— *DISA* invested an additional S$152,709 in AI-powered eye-screening company Digital Life Line through a rights issue, maintaining its 76.36% stake.
— *FSL Trust* completed the disposal of one product tanker, although the sale proceeds and financial impact could not be verified.
— *Samudera Shipping Line* 3Q2026 container volume remained flat at 503,000 TEUs, but average freight rates rose to US$297 from US$252 a year ago, while its logistics business recorded a 56% jump in volumes handled, although high operating costs continued to weigh on margins.
— *Far East Hospitality Trust* 9M2026 income available for distribution rose 7.9% YoY to S$53.9 million, with revenue up 5.4% to S$86.4 million, supported by stronger Japan hotel contributions and lower financing costs.
— *CDL Hospitality Trusts* 9M2026 revenue rose 2.4% YoY to S$198.9 million, with 3Q revenue up 4.1% to S$72 million, supported by stronger performances in Australia and Singapore managed hotels despite continued weakness in Japan.
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*Earnings calendar:*
29/10 - Capland Ascendas, Starhill
30/10 - MPACT^, LREIT
2/11 - Elite UK REIT^, GE^
3/11 - ParkwayLife REIT^, SIA Engg
4/11 - UOB^, CLI^, ACROPHYTE HT^, Manulife US REIT^, CAREIT
5/11 - DBS^, UOI, AVEPoint
6/11 - OCBC^, Singpost^, FLCT^
11/11 - Valuetronic^, SATS, SIA, NTTDC, Prime US REIT, World Precision
12 Nov - Sasseur REIT^, Asian Pay TV, GoldenAgri, SERT, EC World, CSE Global
13/11 - UHREIT^, Frasers Property
19/11 - Seatrium^
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Rgds, Dan
https://www.phillip.com.sg/talktophillip/danccs/
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