That was the interesting part of Friday’s sell-off. AI worries rattled markets across Asia, while our STI fell 117 points.
Japan, South Korea and Taiwan had benefited strongly from the AI boom, especially their chip stocks. After such a strong run, investors are asking: all this money going into AI, when do the profits catch up?
Fair question. A promising business can still come with a share price that expects too much.
Back home, our banks were under pressure. Their results raised concerns over slower earnings growth and interest margins. When all three heavyweights fall together, the STI feels it.
I don’t think the AI story is over. But investors now want more evidence that the spending will pay off. Our banks are still on a solid footing too, even if growing profits gets harder from here.
That was the distinction I wanted to bring across in Lianhe Zaobao. Expectations are being adjusted, which isn’t quite the same as businesses falling apart.
For now, I’m watching whether bank shares can settle down. When the screen turns red, the question I keep coming back to is: has the business outlook changed enough to justify the fall?
https://www.zaobao.com.sg/finance/singapore/story20261106-9959682
Thank you, Lewis Ong, Senior Business News Correspondent at Lianhe Zaobao (早报财经新闻，资深高级记者王阳发), for the thoughtful conversation and for including my views.
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AI抛售潮与银行股走软夹击 海指周五跌2.21%周末前的人工智能（AI）抛售潮使日韩股市再次猛跌超过5%，加上本地银行股股价持续走软，导致新加坡股市全面承压，新加坡海峡时报指数星期五（11月6日）虽然比科技股权重高的区域股市相对更稳定，但全天仍挫跌2.21%或117.08点，闭市报5179.17点。 WWW.ZAOBAO.COM.SG |
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