SATS and ST Engineering in focus: Weekly Review with SIAS

What happened?

In this week’s Weekly Market Review in partnership with the Securities Investors Association Singapore (SIAS), we discuss the pullback in global markets as rising long-term bond yields and renewed oil price pressures weighed on sentiment. We also look at the latest earnings updates from SATS and ST Engineering, alongside the technical outlook for the STI and major US indices as investors turn their attention to Nvidia earnings, US inflation data and the Jackson Hole meeting.

Watch the video to learn more about what we are looking out for this week.

Weekly Market Review

1:35 - Macro Update

• The STI ended its seven-week winning streak, falling 1.0% last week to below the 5,700 level, while the S&P 500 declined 1.4% and the NASDAQ fell 2.1%.
• The pullback came despite resilient corporate earnings and healthy economic growth in both Singapore and the US, with investors increasingly focused on the sharp rise in longer-term bond yields.
• The US 30-year Treasury yield climbed to around 5.3%, its highest level since 2007, while the US 10-year Treasury yield remained elevated around 4.7%.
• Singapore’s 10-year government bond yield also moved higher to around 2.34%, although its increase has been more moderate compared with US bond yields.
• Brent crude oil prices climbed back above US$90 per barrel amid continued uncertainty surrounding the Middle East conflict, renewing concerns that energy prices could keep inflation elevated.
• Among the stronger-performing Singapore stocks last week, Sembcorp Industries gained 3.6%, UOL rose 3.1%, while City Developments advanced 1.6%.
• On the weaker side, SATS plunged 13.2% following its latest earnings release, as investors focused on margin pressure despite continued revenue and profit growth.

Related Links:

• US 30-year bond yield hits highest since 2007: What it means for stocks and S-REITs

STI Top Performers:

• Sembcorp Industries
• UOL Group
• Yangzijiang Shipbuilding
• Keppel DC REIT
• City Developments

STI Worst Performers:

• ST Engineering
• CapitaLand Investment
• UOB
• DFI Retail Group
• SATS

Companies in Focus: 

SATS (SGX: S58)

• SATS reported continued growth in the first quarter of FY2027, with profit after tax and minority interests increasing 6% year on year to S$75.1 million.
• Revenue grew 11.3% year on year to S$1.68 billion, supported by growth across Gateway Services and Food Solutions, while cargo revenue increased 14% to S$893 million.
• However, earnings growth lagged revenue growth as margin pressures emerged. EBITDA margin declined to 17.3% from 18.2%, while PATMI margin slipped to 4.5% from 4.7% a year earlier.
• Management attributed part of the margin pressure to the Middle East conflict, which has driven higher costs, while contributions from associates and joint ventures declined 18.9% year on year.
• Operating indicators remained healthy, with cargo tonnage, flights handled and meals served continuing to increase, while cargo volumes continued to outperform the broader industry.
• Management maintained its FY2029 targets of an EBIT margin above 10% and PATMI margin above 5%, although cost pressures, flight disruptions and operational complexity remain key near-term risks.

Related Links:

• SATS (SGX: S58) latest valuation, share price and analysis
• SATS (SGX: S58) dividend history and dividend forecast

ST Engineering (SGX: S63)

• ST Engineering delivered a stronger first-half performance, with revenue rising 11% year on year to around S$6.6 billion and net profit increasing 27%.
• Growth was broad-based across Commercial Aerospace, Defence & Public Security, and Urban Solutions & Satcom, while lower finance costs and productivity savings supported stronger profitability.
• Commercial Aerospace operating profit increased 29%, supported by stronger engine maintenance, repair and overhaul activity, a more favourable product mix and productivity gains.
• Defence & Public Security also remained resilient, supported by S$2.4 billion of international defence contract wins during the first half of 2026.
• Urban Solutions & Satcom recorded a 15% increase in revenue while operating profit more than tripled, helped by cost reductions within the Satcom business.
• ST Engineering secured S$7.6 billion of new contracts in the first half, lifting its order book to S$35.7 billion, of which S$5.7 billion is expected to be delivered over the remainder of 2026.
• The group paid a 4-cent first-quarter interim dividend and a 5-cent second-quarter dividend, with another 5-cent interim dividend planned for the third quarter.

Related Links:

• ST Engineering (SGX: S63) latest valuation, share price and analysis
• ST Engineering (SGX: S63) dividend history and dividend forecast

Technical Analysis

Straits Times Index

• The STI’s seven-week rally ended with a 1% decline last week as rising bond yields, higher oil prices and ex-dividend adjustments triggered a period of consolidation.
• Despite the pullback, the index rebounded from its 20-day moving average and continues to trade close to the 5,700 level.
• Immediate resistance remains at the previous all-time high of 5,774, while support is seen around 5,550 to 5,560, close to the lower Bollinger Band and the early-August lows.
• The RSI has eased from above 70 to around 60, suggesting that momentum remains positive despite the recent correction.
• For now, the STI is expected to remain range-bound between roughly 5,560 and 5,774 as investors reassess interest rate expectations following the end of the earnings season.

Learn more about the Straits Times Index (STI) here.

Dow Jones Industrial Average

• The Dow Jones also pulled back last week amid concerns over AI valuations, elevated oil prices and rising bond yields.
• Immediate resistance remains around the previous all-time high of 54,744, while the 20-day moving average near 53,309 serves as the key pivot level.
• Stronger support is around 51,850 near the lower Bollinger Band, where buyers could return if the index sees a deeper correction.
• The RSI stands close to the neutral 50 level, indicating limited directional momentum and suggesting that the Dow could remain range-bound in the near term.

S&P 500

• The S&P 500 retreated last week after reaching a recent all-time high of 7,816, with investors becoming more cautious amid rising bond yields and renewed energy price pressures.
• The index remains supported around its 20-day moving average near 7,644, while resistance remains around 7,800 to 7,900.
• The RSI is close to 53, suggesting that momentum is broadly neutral and that investors are waiting for a fresh catalyst.
• Nvidia’s earnings and the upcoming US PCE inflation data are likely to be key drivers this week, given the S&P 500’s significant exposure to AI-related stocks.

Learn more about the S&P 500 index here.

Nasdaq Composite Index

• The NASDAQ also pulled back last week as renewed concerns around AI valuations continued to cap the upside in technology stocks.
• Immediate resistance is around 26,700, a level that has been tested several times since May, followed by the previous high near 27,190.
• Key support remains around the 25,000 psychological level, with stronger technical support near the lower Bollinger Band around 24,670.
• The RSI remains close to the neutral 50 level, indicating limited momentum and suggesting that the NASDAQ could remain range-bound until a stronger catalyst emerges.
• Nvidia’s earnings will be the key event for technology stocks this week, while investors will also watch PCE inflation data and the Jackson Hole meeting for further clues on the interest rate outlook.

Learn more about the Nasdaq Composite index here.

What to look out for this week

Key dates

• Monday, 24 Aug: Haw Par, Moneymax ex-dividend.  
• Tuesday, 25 Aug: PropNex, APAC Realty ex-dividend.
• Wednesday, 26 Aug: Valuemax, Hong Leong Asia, Pan-United ex-dividend.  Nvidia results. US 2Q GDP 
• Thursday, 27 Aug: Delfi, Genting ex-dividend. 10-year SGS bond auction 
• Friday, 28 Aug: Nanofilm Technologies ex-dividend. US consumer sentiment (Aug)

Get the full list of stocks with upcoming earnings and upcoming dividends.

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