Our three local banks took quite a beating last week. But let's not forget, they had enjoyed a fantastic run before that. So some profit-taking was probably overdue. Today's rebound is nice to see, but I wouldn't get too excited just yet.

Over in Korea, the sharp selloff is also a reminder of what happens when a market relies too heavily on a few AI giants. When sentiment turns, things can get ugly pretty quickly.

And with oil above US$100, bond yields staying high and inflation worries still hanging around, investors certainly have quite a bit to digest!

Looking ahead, I'll be watching the upcoming US inflation data and the start of the US bank earnings season. At the end of the day, corporate earnings still need to support those valuations.

A bounce is always welcome. But one good day doesn't mean we're out of the woods.

https://www.zaobao.com.sg/finance/singapore/story20261012-9824119

Thanks to Lianhe Zaobao's Senior Business News Correspondent, Lewis Ong (王阳发), for the opportunity to share my thoughts with readers!

$DBS(D05.SI) $UOB(U11.SI) $OCBC Bank(O39.SI) 

𝐌𝐚𝐫𝐤𝐞t 𝐔𝐩𝐝𝐚𝐭𝐞 *12/10/26*

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STI: 5401 (-11) | HSI: 24211 (+425) | Dow: 51655 (+423) | S&P: 7812 (-46) | Nasdaq: 27366 (+172)

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*US Markets Overnight*

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*A Green Finish to a Choppy Week

After all the worries about oil, bond yields and AI stocks this week, Wall Street still managed to finish in the green. Not bad, considering how nervous investors were just a day earlier. 😅

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The Dow gained 0.8%, S&P 500 rose 0.6% and Nasdaq added 0.6% on Friday. For the week, the S&P 500 gained 1.2%, Dow 0.9% and Nasdaq 0.6%. So despite the ups and downs, all three managed to end higher.

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What helped was some relief over Iran. Trump said the US would not launch new strikes before the midterm elections, which eased some of the immediate worries about oil supply.

Oil initially fell, although it recovered later. WTI ended around US$92 and Brent remained above US$100. Still pretty high, so inflation concerns aren’t going away anytime soon.

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The 10-year Treasury yield hovered around 5.24%, below the 24-year high seen earlier this week. Some relief, but I wouldn’t call 5.24% cheap borrowing costs. 😅

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Tech also recovered a little after Thursday’s selloff. AI-related stocks were generally higher, helping the Nasdaq bounce back. But there were some interesting individual stock stories.

Humana jumped nearly 12% after receiving better Medicare Advantage quality ratings. Meanwhile, AT&T, Verizon and T-Mobile fell sharply, between 9% and 13%, after SpaceX announced a deal to acquire wireless spectrum. Looks like the traditional telcos may have another competitor to worry about.

Apple slipped 1.1% following reports that it had asked suppliers to cut some iPhone 18 Pro component production. Higher memory costs and handset prices appear to be weighing on demand.

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One thing that stands out was US consumer sentiment. It fell to 46.3 in October, showing that consumers are getting increasingly worried about the economy. And that’s something worth watching, because US consumers are still a major driver of economic growth.

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So while Friday’s rebound was welcome, I wouldn’t read too much into one good session. With oil above US$100, yields still above 5%, and earnings season about to begin, there are quite a few things for investors to digest.

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At least Wall Street managed to end the week with a smile.

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*What’s Brewing This Week*

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Looks like another busy week ahead, with US corporate earnings and inflation data taking centre stage. After the recent market volatility, investors will be looking for some reassurance that corporate earnings are holding up, while inflation is not giving the Fed another headache.

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US banks will kick off the earnings season, with investors watching JPMorgan, Citigroup, Wells Fargo and other major banks. Beyond the headline profits, I’ll be paying attention to loan growth, credit quality and management’s outlook. Banks are often a useful barometer of how the broader economy is doing.

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Inflation and consumer spending will also be closely watched. The key question is whether inflation is cooling enough to give the Fed room to ease rates, without the US consumer slowing too much. A tricky balancing act, especially with bond yields and oil prices already keeping investors on their toes.

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Wednesday’s US CPI will probably be the biggest macro event of the week. Inflation was 3.4% in August, so investors will be watching whether September’s reading shows any improvement. Thursday’s US retail sales will then tell us whether consumers are still spending despite higher borrowing costs. Strong spending is good for the economy, but too strong could keep inflation sticky. Sometimes good news isn’t necessarily good news for stocks!

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On the corporate front, TSMC and ASML’s results will be worth watching, especially with the recent volatility in AI-related stocks. Investors will want to see whether the strong demand for AI chips is translating into actual earnings and whether the spending momentum can continue.

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Closer to home, China’s trade figures on Wednesday will give us a better idea of external demand, while Thursday’s new yuan loans and money supply data will shed light on domestic economic activity. Japan has a market holiday on Monday, followed by producer prices and machinery orders later in the week. Over in Europe, German economic sentiment and inflation figures, particularly Friday’s Eurozone CPI, will be closely watched for clues on the ECB’s next move.

Quite a packed week! With markets already a little nervous about valuations, interest rates and growth, the numbers don’t necessarily need to be fantastic. They just need to be good enough to keep investors comfortable.

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*What’s Brewing Today*

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*After the Storm, Who’s Still Standing?*

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After the STI lost almost 300 points in two days, Friday’s 11-point dip almost felt like a relief! 😅 The banks seem to be finding some footing, while *Yangzijiang Shipbuilding* actually gained 3.2%, leading the STI. Perhaps the selling pressure is starting to ease? Still too early to call a bottom, but I think we may see some near term technical rebound today, esp the *banks*.  After such a strong run this year, a correction isn’t necessarily a bad thing. Sometimes it helps separate the stronger stocks from those that were simply riding the market higher. 🤣*Beng Kuang* may see market interest after announcing contract wins this morning.

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*Happening Today*

SG XD:

— Civmec: A$0.035

JP:

— Japan Market Holiday, Sports Day

US:

— Columbus Day / Indigenous Peoples' Day, Bond Market Holiday

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*SG Stock news*

— *Beng Kuang Marine* subsidiary ASOM secured S$112.4 million in contracts and purchase orders for 9M2026, including S$27.2 million in 3Q, with S$71.5 million of work remaining across three core subsidiaries.https://links.sgx.com/1.0.0/corporate-announcements/JL13ZLYAE93BI4WF/906640_BKM%203Q2026%20Contract%20Progress%20Update%20-%20Final.pdf⁠

— *Starhill Global REIT* completed the sale of Tokyo’s Ebisu Fort for JPY6.2 billion (S$50.2 million), 53.8% above valuation, with gearing potentially falling from 35.8% to 34.5% following debt repayment.

https://links.sgx.com/1.0.0/corporate-announcements/T74533D8ELPMZT62/906568_Press-%20Ebisu%20Fort_final.pdf⁠

— *Sunpower Group* said confidential discussions over a potential share transaction remain ongoing, but no decision has been made and there is no certainty a deal will materialise.

https://links.sgx.com/1.0.0/corporate-announcements/Z4NEYSGKQLME12S8/906614_32104080_Second%20Holding%20Announcement.pdf

— *NutryFarm* received a formal legal objection from requisitioning shareholders challenging the validity of proxy votes CEO Niu Liming intends to exercise at its SGM, with the company seeking legal advice.

https://links.sgx.com/1.0.0/corporate-announcements/JF5DW7WPQHRL4CTJ/906613_NutryFarm%20-%20Receipt%20of%20Formal%20Objection%20and%20Legal%20Warning%20Letter.pdf

— Bursa-listed *IOI Properties Group* in talks for secondary listing on SGX

https://www.theedgesingapore.com/news/ipo/bursa-listed-ioi-properties-group-talks-secondary-listing-sgx

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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^, GE^

4/11 - CLI^, ACROPHYTE HT^

6/11 - Singpost^, FLCT^

11/11 - SATS

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Rgds, Dan

https://www.phillip.com.sg/talktophillip/danccs/

https://tinyurl.com/dan-disclaimer

#danccs

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.

https://links.sgx.com/1.0.0/corporate-announcements/Y4W6O1MIVDO9JTL1/906438_Seatrium%20Secures%20EE%20FSRU%20Conversion%20Contract.pdf

— *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%

https://links.sgx.com/1.0.0/corporate-announcements/0D1VILEZUTDH58P6/906469_SERT_Investor%20Day_20261008.pdf

— *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.

https://links.sgx.com/1.0.0/corporate-announcements/0CCXHF8OQ50IXS09/906471_Purchase%20of%20Property.pdf

— *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.

https://links.sgx.com/1.0.0/corporate-announcements/TM9B9QI6SLU6HG24/906457_20261008_Quantum_QTV%20Disposal_Announcement.pdf

— *Vividthree Holdings* formalised its appointment as operator of the Livehouse and Music Studio venues at *SCAPE under an agreement with mm2 Asia and *SCAPE.

https://links.sgx.com/1.0.0/corporate-announcements/NBGC7LKQ2PWQBAHH/906426_Vividthree_SCAPE_Entry%20into%20agreement.pdf

— *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.

https://links.sgx.com/1.0.0/corporate-announcements/Y819KHNRUTSOEVK4/906444_20261008_FSL%20Trust%20Agrees%20to%20sell%20one%20Product%20Tanker.pdf

— *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.

https://links.sgx.com/1.0.0/corporate-announcements/SPCFGR3LHFHRNWOD/906423_iChange_MoneyGram_Press_Release.pdf

— *China International Holdings* said a Chinese court dismissed its subsidiary's appeal in an ongoing litigation case, with the judgment now final and conclusive.

https://links.sgx.com/1.0.0/corporate-announcements/FE0XFPPJF3ULA5YC/906418_CIHL%20-%20Litigation_20261008.pdf

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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

#danccs