𝐌𝐚𝐫𝐤𝐞𝐭 𝐖𝐫𝐚𝐩 (𝐖𝐞𝐞𝐤 𝐞𝐧𝐝𝐞𝐝 𝟑𝟏/𝟕/𝟐𝟔)
No surprises here. The ceiling was raised once again as the 𝐒𝐓𝐈 $STI(STI.SI) crossed the 5,700 mark for the first time, closing at yet another ATH of 5,713. Once again, the rally was led by our three local banks. The spotlight now shifts to next week, with DBS, OCBC and UOB all reporting their earnings. Expectations are high, and these results could set the tone for the broader market. Starting the week at 5,576, STI hit a record high of 5,713 before settling at 5,623 as of Friday morning.
𝐑𝐞𝐥𝐢𝐞𝐟 𝐑𝐚𝐥𝐥𝐲 𝐨𝐫 𝐑𝐞𝐚𝐥 𝐑𝐞𝐜𝐨𝐯𝐞𝐫𝐲?
𝐒𝐞𝐦𝐛𝐜𝐨𝐫𝐩 $Sembcorp Ind(U96.SI) finally staged a meaningful rebound after sliding from around $6.50 to a low of $5.22 over the past month. It hit a week-high of $5.59 before settling at $5.49 as of Friday morning. I wouldn't say everything is back to normal, but it certainly provides some relief for vested investors ahead of its results on 13 August.
𝐖𝐡𝐞𝐧 𝐆𝐨𝐨𝐝 𝐆𝐮𝐢𝐝𝐚𝐧𝐜𝐞 𝐈𝐬𝐧'𝐭 𝐆𝐨𝐨𝐝 𝐄𝐧𝐨𝐮𝐠𝐡.
𝐒𝐞𝐚𝐭𝐫𝐢𝐮𝐦 $Seatrium Ltd(5E2.SI) was another name that kept investors busy. The company guided for a material year on year improvement in first half earnings on Monday, but JPMorgan downgraded the stock with a $1.60 target price two days later. Shares initially gapped up and surged as high as $2.37 in early week before giving back much of those gains to close at $2.17 as of Friday morning, clocking in a weekly gain of 2%.
𝐀 𝐅𝐮𝐥𝐥 𝐂𝐚𝐛𝐢𝐧 𝐃𝐨𝐞𝐬𝐧'𝐭 𝐆𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞 𝐅𝐮𝐥𝐥 𝐏𝐫𝐨𝐟𝐢𝐭𝐬
𝐒𝐈𝐀 $SIA(C6L.SI) will also be one to watch. Despite reporting record first quarter revenue, soaring fuel costs, fuel hedging losses and losses from Air India resulted in a net loss of S$76M. The stock has enjoyed a strong run in recent weeks before retracing slightly post-earnings, so the market will now have to decide whether to focus on resilient travel demand or rising cost pressures.
𝐀𝐈 𝐃𝐢𝐝𝐧'𝐭 𝐂𝐡𝐚𝐧𝐠𝐞. 𝐄𝐱𝐩𝐞𝐜𝐭𝐚𝐭𝐢𝐨𝐧𝐬 𝐃𝐢𝐝
Tech counters had a difficult week after reports that China has begun producing its own immersion DUV lithography machines. While I don't think this changes the long term AI story overnight, it did shake confidence across the semiconductor supply chain. 𝐀𝐄𝐌 $AEM SGD(AWX.SI), 𝐔𝐌𝐒 $UMS(558.SI) and 𝐅𝐫𝐞𝐧𝐜𝐤𝐞𝐧 $Frencken(E28.SI) all came under heavy selling but saw a rebound as of Friday morning.
𝐓𝐡𝐞 𝐈𝐧𝐜𝐨𝐦𝐞 𝐒𝐭𝐨𝐫𝐲 𝐋𝐢𝐯𝐞𝐬 𝐎𝐧
REIT results were generally in line with expectations. From a broader perspective, 𝐋𝐢𝐨𝐧-𝐏𝐡𝐢𝐥𝐥𝐢𝐩 𝐒-𝐑𝐄𝐈𝐓 𝐄𝐓𝐅 $LION-PHILLIP S-REIT(CLR.SI) held up reasonably well despite going ex-dividend this week. That suggests investor appetite for income generating assets remains fairly resilient.
Overall, next week feels like an earnings driven week. Between the three banks and a host of corporate results, investors should get a much clearer picture of whether Singapore's record breaking rally still has room to run.
Rgds!
Dan
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