Singtel and Keppel 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 continued rally in global markets as both the S&P 500 and STI reached fresh all-time highs, supported by easing concerns around the Iran conflict and continued AI-driven optimism. We also look at the latest updates from Singtel and Keppel, alongside the technical outlook for the STI and major US indices.

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

Weekly Market Review

1:23 - Macro Update

• US markets continued to rally last week, with the S&P 500 reaching fresh all-time highs as optimism around AI-related technology stocks remained strong despite elevated bond yields and inflation concerns.
• The STI also climbed to a new all-time high, supported by improving market sentiment and strength in Singapore blue-chip stocks.
• US government bond yields remained elevated above 4.5%, even after easing slightly from recent highs, as investors scaled back expectations for aggressive rate cuts in 2026.
• Market expectations have shifted significantly over recent months, with investors now expecting only one US rate cut potentially in December 2026.
• Investor sentiment improved further over the weekend following signs of progress towards a potential Iran peace deal and a possible reopening of the Strait of Hormuz, which helped ease concerns around elevated oil prices.
• Among the stronger-performing Singapore stocks last week, ST Engineering rose 8.7% while SGX gained 6.0%, supported by improving investor sentiment.
• On the weaker side, Wilmar International fell 5.5% while Singtel declined 4.8% following its latest earnings announcement.

STI Top Performers:

• ST Engineering
• Thai Beverage
• SGX
• Frasers Logistics & Commercial Trust
• City Developments

STI Worst Performers:

• HongKong Land
• Jardine Matheson
• Singtel
• Yangzijiang Shipbuilding
• Wilmar International

Companies in Focus: 

Singtel (SGX: Z74)

• Singtel reported healthy FY2026 underlying net profit growth of 12% year on year, with growth rising to 21% on a constant currency basis.
• Growth remained broad-based across its operating businesses, supported by stronger performance from Optus, NCS, and its digital infrastructure business.
• Optus delivered 23% year-on-year growth in operating profit, supported by stronger mobile service revenue and resilient enterprise demand in Australia.
• NCS recorded 34% year-on-year operating profit growth and achieved record bookings of S$3.8 billion as it continued positioning itself for AI-related demand.
• Singtel’s digital infrastructure business also continued expanding regionally, with growth in contracted data centre capacity and increasing investments into AI-related infrastructure.
• Singtel announced a final core dividend of 7 cents alongside a value realisation dividend of 3.3 cents, bringing the total FY2026 dividend to 18.5 cents per share, up 9% year on year.
• Looking ahead, Singtel expects low to mid-single-digit operating profit growth in FY2027 while increasing total CapEx to S$3 billion, with a larger portion directed towards growth initiatives including AI infrastructure and digital infrastructure investments.

Related Links:

• Singtel (SGX:Z74) latest valuation, share price and analysis
• Singtel (SGX:Z74) dividend history and dividend forecast

Keppel (SGX: BN4)

• Keppel remained in focus after the proposed sale of M1 to Simba lapsed following regulatory issues surrounding the transaction review process.
• IMDA suspended its review after identifying potential unauthorised use of radio frequency bands by Simba, preventing the transaction from completing before the long-stop deadline.
• As a result, Keppel will continue retaining majority ownership of M1 while implementing its “Plan B” strategy focused on improving M1’s EBITDA through cost reductions and operational efficiencies.
• Key initiatives include workforce right-sizing, reducing network and technology costs, increasing automation using AI, and rationalising products and services.
• As part of Keppel’s asset monetisation programme, the company aims to monetise S$2 billion to S$3 billion of non-core assets in 2026.

Related Links:

• Keppel (SGX:BN4) latest valuation, share price and analysis
• Keppel (SGX:BN4) dividend history and dividend forecast

Technical Analysis

Straits Times Index

• The STI continued to climb to fresh all-time highs, reaching above 5,090 points in early Monday trading as optimism around a potential Iran peace deal boosted sentiment.
• The next key resistance level is around the 5,100 psychological mark, while immediate support is seen near the previous breakout level around 5,041. Stronger support remains near 4,920.
• The RSI is approaching the overbought 70 level, suggesting that the STI may be entering an overextended phase in the near term.
• The MACD remains firmly positive, indicating that the medium-term uptrend remains intact despite the risk of near-term consolidation or mean reversion.

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

Dow Jones Industrial Average

• The Dow Jones climbed to another fresh all-time high last Friday, supported by optimism surrounding a potential resolution to the Iran conflict.
• Immediate resistance is around the 51,000 psychological level, while support is seen near 49,600 followed by stronger support around 48,886.
• The RSI remains constructive at around 64, suggesting that there may still be room for further upside before the market becomes overbought.
• The MACD suggests that the Dow could remain range-bound in the medium term even if it tests the 51,000 level in the near term.

S&P 500

• The S&P 500 remained near record highs after briefly surpassing the 7,500 level, supported by continued optimism around AI and easing geopolitical concerns.
• The next resistance level is around 7,600, while support is seen near the previous breakout zone around 7,200 and potentially 7,000 if sentiment weakens significantly.
• The RSI remains elevated near 68, suggesting that the index is approaching overbought territory once again.
• The MACD has turned negative recently, suggesting that upside momentum may moderate and that the S&P 500 could enter a period of consolidation despite the strong broader trend.

Learn more about the S&P 500 index here.

Nasdaq Composite Index

• The Nasdaq Composite is expected to test the 27,000 level after strong gains in futures trading following developments around the Iran peace negotiations.
• Immediate support remains around the previous breakout zone near 24,000, which corresponds to the earlier highs seen in January 2026.
• The RSI remains elevated near 67 but still below the extreme overbought levels seen earlier in May, suggesting that there may still be some room for further upside.
• The MACD has turned negative after a bearish crossover, reflecting recent profit-taking following NVIDIA’s blockbuster earnings and suggesting that volatility could remain elevated in the near term.

Learn more about the Nasdaq Composite index here.

What to look out for this week

Key dates

• Monday, 25 May: Singapore Q1 GDP, US Memorial Day (US markets closed)
• Tuesday, 26 May: ST Engineering, iFast, Thai Beverage, NetLink NBN Trust ex-dividends,  SIAS Corporate Connect: Wee Hur Holdings
• Wednesday, 27 May: Singapore Public Holiday
• Thursday, 28 May: US PCE (Personal consumption expenditures) price data
• Friday, 29 May: Nil

Check out the full list of Singapore stocks, REITs and ETFs with upcoming dividend payments with our dividend calendar.

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