𝐌𝐚𝐫𝐤𝐞t 𝐔𝐩𝐝𝐚𝐭𝐞 *9/10/26*
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STI: 5412 (-195) | HSI: 23785 (-344) | Dow: 51231 (+51) | S&P: 7765 (-36) | Nasdaq: 27193 (-334)
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*US Markets Overnight*
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*AI Takes a Breather, Oil Heats Up*
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Looks like investors are starting to look a bit more closely at the AI story. Not that AI is suddenly going away. But after such a strong run, investors are asking whether all that spending will eventually translate into profits. Fair question, especially when companies are borrowing billions to build AI infrastructure.
Wall Street ended mixed. The Nasdaq fell 1.3%, S&P 500 lost 0.5%, while the Dow managed a small 0.1% gain.
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Tech took most of the beating after a report suggested *OpenAI’s* annualised revenue was US$20 billion lower than previously indicated. That raised some questions about AI demand and the huge investments being made. Micron dropped 4.8%, Broadcom 4.4%, Oracle 5.5% and Nvidia nearly 3%. The semiconductor ETF lost 3.5%, while the memory ETF fell 5%. Quite a bit of selling there.
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*Oil* wasn’t helping either. WTI jumped 3.4% to US$91.30 and Brent rose 3.8% to around US$104, as Middle East tensions and hurricane-related supply concerns returned. Higher oil means more inflation worries, something the Fed certainly doesn’t need now. Interestingly, the *10-year Treasury yield* actually eased to around 5.23%. So bonds gave stocks a little relief, but it wasn’t enough to save tech. 😅
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Elsewhere, *Chipotle* jumped 6% on reports that Starbucks had explored buying the company. PepsiCo gained 3.5% after its results, while *Palantir* rose 2.4% following a Goldman Sachs upgrade.
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Next up, look out whether this is just some profit-taking after the recent AI rally, or whether investors are starting to question the returns on all that AI spending. After all, a good business opportunity doesn’t automatically mean a good investment at any price.
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*What’s Brewing Today*
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*STI Takes a Dive. Time to Buy or Say Bye Bye?*
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The $STI(STI.SI)plunged 195 points yesterday, quite a nasty fall after Wednesday's 93-point drop. But let's not forget, the market has enjoyed a very strong run this year, so some profit-taking isn't exactly surprising. What concerns me more is whether the selling spreads beyond the heavyweights. A sharp correction doesn't necessarily mean the uptrend is over, but it's a good reminder that markets don't move up in a straight line. Perhaps a little reality check after all the excitement. I was asked many times yesterday, is it time to buy the *banks*? Well, for long term investors who have been eyeing but staying on the sidelines, probably time to start accumulating. Don’t go “all-in”. Spread your entry across different levels. For opportunist play, I reckon probably not the time yet. While I can’t guess where the bottom is, the present situation, from a SG stock market mechanism perspective (contra, margin calls, etc), likely would still be unstable. Would prefer to wait for selling to subside first. Just my view to share.
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On such a red day, $Chasen(5NV.SI)actually bucked the trend, rising over 3% after securing S$23.6 million worth of new relocation projects, both locally and overseas. Quite encouraging, especially on such a weak market day. Of course, winning contracts is one thing, turning them into profits is another. But note that this is a penny stock, purely for awareness purposes. Not a stock recommendation. Meant for high-risk penny stock traders.
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Had also shared a bit on $Stoneweg EUTrust EUR(SET.SI) yesterday. Among the few things I brought up, the one that stands out, from a stock market perspective, is that SWI Group is paying €2.00 / share for the internalisation while the market price is only less than €1.50. This is really a (big) vote of confidence, paying 33% premium. Something worthy to look into here for the med-long term, imo.
You can read more about it here: https://lnkd.in/p/gg-FBPra
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*Happening Today*
CN:
— Trade Balance / Exports / Imports
US:
— Initial Jobless Claims / Continuing Jobless Claims
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*SG Stock news*
— *Seatrium* secured a contract from Excelerate Energy to convert an LNG carrier into a floating storage and regasification unit (FSRU), strengthening its position in LNG vessel conversions.
— *Stoneweg European REIT* outlined plans to grow logistics exposure towards 70% and expand into data centres, while its proposed management internalisation is expected to lift pro forma distribution per security by 5.9%
— *OKP Holdings* completed its S$21 million purchase of a Jalan Ahmad Ibrahim industrial property, with in-principle approval to convert part of the site into a dormitory for up to 800 workers.
— *StarHub* agreed to acquire MyRepublic's Singapore mobile business, bringing both its broadband and mobile operations under StarHub while retaining the MyRepublic brand, subject to completion conditions.
https://links.sgx.com/1.0.0/corporate-announcements/VWRH64PMNES92NT7/906408_MR%20081026.pdf
— *Secura Group* upgraded its Integrated Command Centre with AI-powered surveillance, remote monitoring and digital twin technology to improve productivity and reduce reliance on manpower-intensive security services.
https://links.sgx.com/1.0.0/corporate-announcements/WPAKGJKPJQU1MMVB/906452_PR-SICC%20Upgrades.pdf
— *Quantum Healthcare* proposed disposing of its loss-making QT Vascular subsidiary for S$1, while paying the buyer a S$150,000 takeover fee, with an estimated accounting gain of S$4.44 million.
— *Vividthree Holdings* formalised its appointment as operator of the Livehouse and Music Studio venues at *SCAPE under an agreement with mm2 Asia and *SCAPE.
— *First Ship Lease Trust* agreed to sell its 2006-built product tanker Speciality to an unrelated buyer, which has placed a 10% deposit; sale consideration was not disclosed.
— *Intraco* subsidiary iChange partnered MoneyGram to launch international remittances through its app, giving over 50,000 customers access to transfers across more than 200 countries and territories.
— *China International Holdings* said a Chinese court dismissed its subsidiary's appeal in an ongoing litigation case, with the judgment now final and conclusive.
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*Earnings calendar:*
21/10 - OUEREIT
22/10 - FCT^, Suntec
23/10 - Capland China^
26/10 - iFast
27/10 - Capland Ascott^, KIT^, MIT, Digicore REIT, Aztech, UI Boustead REIT
28/10 - Capland India^, Wilmar, Landmark REIT, MLT
29/10 - Ultragreen^, CICT^, CDLHT^, Capland Ascendas
30/10 - MPACT^, LREIT
2/11 - Elite UK REIT^
4/11 - CLI^, ACROPHYTE HT^
6/11 - Singpost^, FLCT^
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Rgds, Dan
https://www.phillip.com.sg/talktophillip/danccs/
https://tinyurl.com/dan-disclaimer
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