𝐌𝐚𝐫𝐤𝐞t 𝐔𝐩𝐝𝐚𝐭𝐞 *26/10/26*
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STI: 5422 (+7) | HSI: 23093 (+158) | Dow: 52,215 (-653) | S&P: 7,624 (-40) | Nasdaq: 25,955 (-54)
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*US Markets Overnight*
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*A Red Friday, A Green Dow Week.*
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Quite a roller coaster for Wall Street this week. Just when tech stocks looked like they were recovering, Thursday’s selloff came along. And on Friday, oil prices gave investors another headache. The Dow plunged 653 points, or 1.2%, while the S&P 500 lost 0.5% and Nasdaq slipped 0.2%.
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But here’s the interesting part.
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For the week, the Dow actually gained 0.4%, its third straight winning week. Meanwhile, the S&P 500 fell 0.5% and Nasdaq lost 0.7%, both recording their second consecutive weekly decline. Quite a mixed picture!
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The biggest worry on Friday was oil. WTI jumped 4% to around US$103.45, while Brent climbed to US$117, as tensions in the Middle East escalated again. At these levels, oil is becoming more than just an energy story. Higher fuel costs can eventually affect transport, production and consumer prices. Not exactly what the Fed wants when inflation is already a concern. The 10-year Treasury yield also climbed back towards 5%, after falling sharply on Thursday.
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Interestingly, tech wasn’t the main problem this time.
Memory stocks actually bounced. SK Hynix jumped 4%, while Nvidia and Tesla were only slightly lower. Looks like some investors were willing to buy back into chips after Thursday’s heavy selling.
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There were also some interesting individual stock movements.
*SpaceX* gained 2% on reports of its plans to build a mobile network. That sent Crown Castle up 9.5% and American Tower 4%, while AT&T, Verizon and T-Mobile fell on concerns about potential competition. Quite an interesting development for the telecom industry.
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On the earnings front, *Bloom Energy* plunged 11%, despite beating earnings expectations and raising its revenue outlook. The problem? Negative free cash flow. That’s something I’ve been watching in the AI infrastructure space. Revenue growth can look fantastic, but investors are increasingly asking how much cash the business is actually generating.
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American Express fell 4%, while Deckers Outdoor, the company behind Hoka and Ugg, lost 5% after cutting its sales forecast.
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Seems like investors are still trying to figure out where to put their money. AI remains an important growth story, but valuations, cash flow and funding costs are getting more attention. And with oil climbing again, the macro picture isn’t making things any easier.
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*What’s Brewing This Week*
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Looks like investors are in for another busy week! 😅 Between central bank decisions, heavyweight tech earnings and economic data, there will be plenty for markets to digest. And after the recent volatility, investors may be a little less forgiving of any disappointments.
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In the *US Markets*, all eyes on the Fed and Big Tech. The Federal Reserve announces its *interest rate decision* on Wednesday (Thursday morning, Singapore time), with markets watching closely for clues on what comes next. Thursday also brings *US 3Q GDP* and September *PCE inflation data*. Quite a combination! Meanwhile, earnings from *Microsoft*, *Alphabet* and *Amazon* will put the AI investment story back under the spotlight. With investors increasingly questioning the huge spending on AI, good results alone may no longer be enough. The market wants to see returns too.
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In the *China Markets*: investors will be looking for Policy signals. The *China’s Fifth Plenum*, scheduled for 26 to 29 October, will be closely watched for signals on economic priorities, particularly domestic consumption, infrastructure spending and support for strategic industries. September *industrial profits data* on Tuesday will also provide another indication of how Chinese businesses are coping. I wouldn’t expect a major stimulus announcement straight away, but even the wording of the policy statement could influence market sentiment. With the US-China trade truce approaching its November deadline, trade relations will remain another important factor.
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Back on *homeground*, earnings take centre stage. The STI is still trying to find its footing after the recent pullback. Apart from taking cues from Wall Street, investors will have several local corporate results to digest. Companies worth watching include *iFAST, Mapletree Industrial Trust, Mapletree Logistics Trust, Wilmar, Keppel and Sheng Siong*, with results expected during the week. Singapore’s *September industrial production figures* on Monday will also be interesting, particularly given the strength of AI-related manufacturing. For me, the question is whether company earnings can provide some support to the market, especially if overseas sentiment remains shaky.
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*What’s Brewing Today*
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Last week, highlighted a few stocks in my daily. Glad most of them pan out well. Highlighted *DFIRG ( $DFIRG USD(D01.SI))* last Tuesday in my daily as a potential “early recovery play.” Since then, its share price has been stuttering, though with limited downside. Its latest 3Q2026 results, released last Friday, however, paint an encouraging picture: underlying subsidiary sales rose 4% YoY, while profits surged 17%. Adding to the optimism, the Group has announced a higher dividend payout ratio of 80% for 2027. Could these positive developments be the catalyst that propels DFIRG from an “early recovery play” into a full-fledged “recovery play”?
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Also mentioned *JMH ( $JMH USD(J36.SI))* (14/10) and *FCT ( $Frasers Cpt Tr(J69U.SI))* (22/10). JMH had hit my target of US$58.70 while FCT had hit a high of $2.20, testing the 200MA. *Suntec REIT ( $Suntec Reit(T82U.SI) )*, which I highlighted on 23/10 rocketed to $1.40, just 1 c off the level that I mentioned that day.
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One REIT that I mentioned (on 22/10), *OUEREIT ( $OUEREIT(TS0U.SI))*, however, was the only “blemishing” one. It dropped to as low as $0.33, but luckily, a last min surge on Friday saw share price coming back to $0.345 level. Anyway, it could potentially see market interest today as it announced a proposed 3.2% DPU-accretive acquisition of 50% in Sydney’s 180 George Street. Let’s see how it pans out.
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Last week was a REITs recovery week. Let’s see how this week is going to go as we welcome more SG earnings.
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*Happening Today*
SG XD:
— Singapore Kitchen Equipment: S$0.0025
SG Earnings:
— iFast, Micro-Mechanics, Infotech
SG:
— Industrial Production (MoM) / Industrial Production (YoY)
US:
— Chicago Fed National Activity Index / Dallas Fed Manufacturing Business Index
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*SG Stock News*
👍 — *DFI Retail Group* reported 3Q2026 underlying subsidiary sales growth of 4% YoY and profit growth of 17%, while reaffirming its 2028 underlying profit target of US$310–350 million and raising its 2027 dividend payout ratio to 80%.
https://links.sgx.com/1.0.0/corporate-announcements/C1PEQ5ZSH4AY1W7E/907946_DFIRGH%203Q26%20IMS.pdf
👍 — *OUE REIT* proposed acquiring an additional 50% stake in Sydney’s 180 George Street for approximately S$413.4 million, raising its ownership to 69.9%, with the transaction expected to be 3.2% DPU-accretive.
— *Keppel* was appointed by Singapore’s EDB to aggregate, import and sell up to 120MW of biomethane over 15 years, with supplies expected from end-2028 to support power generation and data centres.
— *Seatrium* secured over S$500 million in contracts from *Keppel’s* RigCo to complete four offshore drilling rigs, with the first two targeted for delivery in 2027 and 2028, while plans for the remaining two are still being assessed.
— *ISEC Healthcare* 3Q2026 revenue rose 6% YoY to S$21.9 million, but net profit attributable to shareholders fell 19% to S$3.16 million, while 9M2026 revenue grew 8% to S$63 million.
‼️ — *The Place Holdings* FY2025 net loss widened 58% to S$3.93 million from S$2.48 million, with negligible revenue of S$4,000 and higher administrative expenses.
— *Wee Hur Holdings* appointed Tanglin Trust School CEO Craig Considine as founding head of Wycombe Abbey School (Singapore), marking another milestone towards the school's planned September 2028 opening.
— *MindChamps PreSchool* won the Singapore Learning & Development Innovation of the Year award for its patented interdisciplinary teaching method, with research involving 221 children showing improved performance in music literacy, language and mathematics.
— *Wilmar International* received a notice from Singapore’s NEA requiring documents and information under the Transboundary Haze Pollution Act relating to forest fires in Indonesia, and said it is working to comply with the request.
— *First Resources* received an NEA notice on 23 October requiring documents and information under Singapore’s Transboundary Haze Pollution Act, and is reviewing the request before responding.
— *Bumitama Agri* received an NEA notice requiring documents and information relating to Indonesian forest and land fires under Singapore’s Transboundary Haze Pollution Act, and will comply with the request.
— *Golden Agri-Resources* said its wholly owned Singapore subsidiary received an NEA notice seeking documents and information under the Transboundary Haze Pollution Act, and will cooperate with the authorities.
— *Indofood Agri Resources* received an NEA notice requesting documents and information under Singapore’s Transboundary Haze Pollution Act relating to Indonesian forest fires, and is reviewing the request before responding.
— *Kencana Agri* received an NEA notice requesting documents and information under Singapore’s Transboundary Haze Pollution Act relating to forest and land fires in Indonesia.
— *Alliance Healthcare Group* disclosed a cyberattack affecting approximately 110,000 members’ personal data, potentially including bank details of seven members and a medical diagnosis of one member, with investigations ongoing.
— *Acrophyte Hospitality Trust* said its strategic review remains ongoing, with discussions continuing with its sponsor over a potential transaction involving its stapled securities, although no deal is guaranteed.
— *NutryFarm International* said requisitioning shareholders have yet to substantively address most requests for supporting documents in its ongoing shareholder dispute, extending the response deadline to 26 October 2026.
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*Earnings calendar:*
26/10 - iFast, Micro-Mechanics, Infotech
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, 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 - SATS, SIA, NTTDC
12 Nov - Sasseur REIT^, Asian Pay TV
13/11 - UHREIT^, Frasers Property
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Rgds, Dan
https://www.phillip.com.sg/talktophillip/danccs/
https://tinyurl.com/dan-disclaimer
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