𝐌𝐚𝐫𝐤𝐞t 𝐔𝐩𝐝𝐚𝐭𝐞 *14/10/26*
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STI: 5430 (+15) | HSI: 24271 (+XX) | Dow: 51670 (-180) | S&P: 7805 (-2) | Nasdaq: 27204 (-41)
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*US Markets Overnight*
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*Banks Report, Chips Retreat*
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The US earnings season is getting underway, but Wall Street doesn’t seem too excited just yet. What is interesting is that even with some decent bank results, investors were still selling. Looks like expectations are already quite high, and simply delivering good results may not be enough anymore.
The Dow fell 0.4%, Nasdaq slipped 0.2%, while the S&P 500 was almost flat.
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The big US banks kicked off their quarterly reporting. JPMorgan, Goldman Sachs, Wells Fargo and Citigroup all ended lower, with Citi dropping around 5.5%. Not exactly the reaction you would expect at the start of earnings season. 😅 Meanwhile, memory stocks continued to take a beating.
Chinese chipmaker *CXMT* reportedly made a breakthrough in memory chip technology, raising concerns about future competition. Micron, Sandisk, SK Hynix, Seagate and Western Digital all fell. It’s interesting because memory stocks have enjoyed a strong run on the back of AI demand. But this is also telling us that even in a growing industry, competition can change the earnings outlook quite quickly. Not all tech stocks were down though. *Meta* gained 2.5%, while *Apple* briefly hit another record high. Elsewhere, Johnson & Johnson fell nearly 6%, while Caterpillar lost 3.5%. Both weighed on the Dow.
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On the macro side, the 10-year Treasury yield eased to around 5.22%, while oil remained high, with WTI around US$94.45 and Brent near US$106. So yields have come down a little from last week’s highs, but borrowing costs are still pretty steep.
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Now comes the next test. US CPI is due on Wednesday, followed by PPI on Thursday. With oil prices staying elevated, I think investors will be watching inflation closely. A hotter-than-expected reading could quickly bring those Fed rate worries back.
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*What’s Brewing Today*
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*A Little More Building, A Little More Earnings!*
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While much of the market is still trying to find its footing, $JMH USD(J36.SI) has some good news. The group raised its FY2026 earnings guidance and is taking full control of Gammon Construction after buying out its partner for around US$331 million. The stock gained 1.1% yesterday. What is worth noting is the combination of stronger earnings and an acquisition that could add to future profits. Of course, execution still matters, but it's encouraging to see some companies quietly getting on with growing their businesses despite the market volatility.
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Chart wise, JMH is an interesting one. I would classify it as a *potential bottoming-out and recovery trade*, rather than a confirmed turnaround. At US$56.42, the stock has recovered slightly from its recent low of US$52.85. However, the *longer-term chart is still weak*, and the important resistance around US$58.67 has yet to be cleared. Consolation is that the stock appears to be stabilising after several months of selling. The question now is whether this is the beginning of a recovery or merely a temporary rebound.
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Another interesting one is *Southern Alliance Mining*, which jumped 10.5% to S$0.42 on relatively active trading. It was announced on 12 Oct that His Majesty Seri Paduka Baginda Yang di-Pertuan Agong Sultan Ibrahim has acquired approximately 2.25% of the Company’s issued shares from Managing Director Dato’ Sri Pek Kok Sam. Note that it is still choppy on the chart as the trading volume is erratic. I would want to see whether the move can sustain itself before getting too excited. Personally, I would *avoid at the moment* until price and volume can sustain. Just fyi.
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*Happening Today*
SG XD:
— Combine Will: S$0.05
— Union Gas: S$0.0048
— United Overseas Australia: A$0.02
CN:
— Trade Balance / Exports (YoY) / Imports (YoY)
EU:
— German CPI (MoM) / German CPI (YoY) / Eurozone Industrial Production
US:
— PPI (MoM) / Core PPI (MoM)
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*SG Stock news*
⭐ — *Jardine Matheson* raised its FY2026 underlying EPS guidance to US$5.50–5.65 and acquired Balfour Beatty's 50% stake in Gammon Construction for £250 million (US$330 million), taking full ownership.
https://links.sgx.com/1.0.0/corporate-announcements/YU547RIS1UFCCYSW/906869_JMH%20v2.pdf
— *Parkway Life REIT* will acquire three nursing homes in France for €38.8 million (S$56.5 million) under 12-year leases, expanding its French portfolio to 14 properties in a DPU-accretive deal.
https://links.sgx.com/1.0.0/corporate-announcements/52FQIRTQ5X3Z6QHF/906952_PLife-News%20Release.pdf
— *EuroSports Global* terminated its proposed JV with Helios Power Systems for heavy-duty commercial vehicle distribution after failing to agree on final commercial terms, with no material FY2027 financial impact expected.
— *KORE US REIT* completed its fourth full-floor spec-suite development in Washington, with 50% of its six suites pre-leased, while another 35,000 sq ft of spec suites are under development.
— *Duty Free International* 1HFY2027 revenue surged 77.6% to RM132.9 million, but swung to an attributable net loss of RM557,000 from a RM4.03 million profit.
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*Earnings calendar:*
21/10 - OUEREIT
22/10 - FCT^, Suntec
23/10 - Capland China^
26/10 - iFast, Micro-Mechanics
27/10 - Capland Ascott^, KIT^, MIT, Digicore REIT, Aztech, UI Boustead REIT, First Resources
28/10 - Capland India^, Wilmar, Landmark REIT, MLT
29/10 - Ultragreen^, CICT^, CDLHT^, FEH^, Capland Ascendas
30/10 - MPACT^, LREIT
2/11 - Elite UK REIT^, GE^
3/11 - SIA Engg
4/11 - UOB^, CLI^, ACROPHYTE HT^, Manulife US REIT^
5/11 - DBS^
6/11 - OCBC^, Singpost^, FLCT^
11/11 - SATS, SIA
13/11 - Frasers Property
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Rgds, Dan
https://www.phillip.com.sg/talktophillip/danccs/
https://tinyurl.com/dan-disclaimer
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