SIA and OUE REIT 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 technology stocks amid valuation concerns, easing oil prices and lower bond yields as investors dialled back expectations for aggressive interest rate hikes. We also look at the latest developments at OUE REIT and Singapore Airlines (SIA), 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

1:45 - Macro Update

• US markets retreated last week, with the S&P 500 falling 2.0% and the NASDAQ declining 4.6%, led by weakness in technology stocks amid renewed concerns over stretched valuations.
• Investor sentiment towards the technology sector was also dampened by reports that OpenAI’s potential IPO could be delayed until 2027, while rising memory chip prices prompted Apple to announce higher iPhone prices.
• The STI remained relatively resilient, posting only modest losses as the Singapore market continued to benefit from its lower exposure to technology stocks and its perceived safe-haven characteristics.
• Oil prices continued to decline and returned to around US$73 per barrel, close to levels seen before the start of the Middle East conflict, as investors became more optimistic that negotiations would lead to a normalisation in global oil supply.
• The easing in oil prices also led investors to moderate expectations for interest rate hikes. Markets are now pricing in one potential rate hike in 2026, down from expectations of two hikes just a week ago.
• US government bond yields declined further, with the US 10-year Treasury yield falling significantly from its recent highs in May.
• Among the stronger-performing Singapore stocks, Singapore Airlines gained 5.0% as lower fuel prices improved its earnings outlook, while SATS rose 2.7% on expectations that global travel demand would remain resilient.
• On the weaker side, City Developments fell 5.0%, UOL declined 3.0%, while Yangzijiang Shipbuilding and Seatrium dropped 5.1% and 4.0% respectively as oil prices normalised.

STI Top Performers:

• SIA
• SATS
• Mapletree Pan Asia Commercial Trust
• Sembcorp Industries
• Frasers Centrepoint Trust

STI Worst Performers:

• UOL
• ST Engineering
• Seatrium
• City Developments
• Yangzijiang Shipbuilding

Companies in Focus: 

OUE REIT (SGX: TS0U)

• OUE REIT announced the proposed divestment of Crowne Plaza Changi Airport for S$500 million, representing a 1% premium to the average of two independent valuations.
• The divestment forms part of the REIT’s value crystallisation strategy, with management seeking to unlock capital from mature assets and redeploy proceeds into higher-yielding opportunities with better growth prospects and longer lease profiles.
• Management also highlighted that the divestment mitigates earnings disruption risks arising from the expiry of the hotel management contract in 2028.
• Following the transaction, OUE REIT’s aggregate leverage is expected to decline significantly from 41.5% to 36.6%, providing additional debt headroom and greater financial flexibility for future acquisitions.
• The REIT intends to distribute S$20 million of the net proceeds to unitholders as special distributions over the first two years following completion of the divestment, which is expected to lift pro forma DPU by 5.8%.
• At current levels, OUE REIT trades at around 0.36 times price-to-book, close to its historical average valuation.

Read also: kopi-C with OUE REIT CEO: The case for prime assets in a volatile world

Related Links:

• OUE REIT (SGX:TS0U) latest valuation, share price and analysis
• OUE REIT (SGX:TS0U) dividend history and dividend forecast

Singapore Airlines (SGX: C6L)

• Singapore Airlines’ share price recovered strongly over the past week, supported by the sharp decline in jet fuel prices following easing tensions in the Middle East.
• For the latest twelve-month period ended March 2026, SIA continued to report growth in revenue and operating profit, reflecting resilient passenger demand and healthy operating performance across both its full-service and low-cost carrier segments.
• However, net profit declined compared to the previous year due largely to weaker contributions from associated companies, particularly Air India.
• The sharp moderation in jet fuel prices is expected to provide meaningful relief to operating expenses after fuel costs had risen significantly during the height of the Middle East conflict.
• SIA’s balance sheet also continued to strengthen, with the debt-to-equity ratio declining as the group generated strong operating cash flows.
• Although dividend per share normalised from the previous year due to lower earnings, SIA’s dividend yield remains attractive relative to the broader STI. However, following the recent share price recovery, its valuation has risen above historical average price-to-earnings levels.

Read also: 3 Singapore blue chip dividend stocks yielding above 4% in June 2026. What to watch before buying for income

Related Links:

• SIA: Singapore Airlines Limited (SGX:C6L) latest valuation, share price and analysis
• SIA: Singapore Airlines Limited (SGX:C6L) dividend history and dividend forecast

Technical Analysis

Straits Times Index

• The STI was largely flat last week after surging more than 3% in the previous week and continues to trade firmly above the 5,100 level.
• The index reached a fresh all-time high of 5,241 points on 23 June before giving back some gains amid profit-taking and weakness in global technology stocks.
• Immediate resistance is around the upper Bollinger Band near 5,291, while the 20-day moving average around 5,115 provides near-term support. Stronger support remains around the 5,000 psychological level.
• The RSI remains healthy at around 59 and is still below overbought territory, suggesting that there remains room for further upside.
• For now, the STI appears likely to remain range-bound between 5,100 and 5,200 over the next one to two weeks.

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

Dow Jones Industrial Average

• The Dow Jones continued to outperform technology-heavy indices, benefiting from expectations that banks and financial stocks could benefit from a higher-for-longer interest rate environment.
• The index reached a new all-time high of 52,655 points last week.
• Immediate support is around the 20-day moving average at 51,295, followed by stronger support near 50,258.
• The RSI remains healthy at around 61, indicating that upward momentum remains intact and that the market still has room to advance further.
• The Dow could continue retesting its recent highs and potentially challenge new highs again during July.

S&P 500

• The S&P 500 pulled back sharply last week as technology stocks weakened following renewed concerns over valuations and the delayed OpenAI IPO.
• The index closed at around 7,354 and remains close to the support zone established in May.
• Immediate support is around 7,300, with stronger support near the lower Bollinger Band at approximately 7,258. Resistance remains near the all-time high around 7,600.
• The RSI has weakened to around 46, falling below the neutral 50 level and indicating softer momentum.
• Despite the near-term weakness, futures markets have rebounded, suggesting that the recent pullback may represent consolidation rather than the beginning of a deeper correction.

Learn more about the S&P 500 index here.

Nasdaq Composite Index

• The NASDAQ was the weakest-performing major US index last week, falling 4.6% as investors rotated out of technology stocks amid valuation concerns.
• The index briefly fell to around the 25,000 psychological level, although support held and futures have since recovered modestly.
• Immediate support is around the lower Bollinger Band at approximately 24,891, while the 20-day moving average near 26,125 remains the key resistance level. Further resistance is around the upper Bollinger Band at 27,359.
• The RSI has weakened to around 42, indicating negative momentum and suggesting that the index may require a period of consolidation before staging a meaningful rebound.
• For now, the NASDAQ may remain range-bound around the 25,000 level while investors reassess technology valuations and await fresh catalysts in the second half of the year.

Learn more about the Nasdaq Composite index here.

What to look out for this week

Key dates

• Tuesday, 30 Jun: Beansprout x CMC event
• Wednesday, 1 Jul: Singapore Savings Bonds issue, Amova SGD IG Corporate Bond Index ETF/ Straits Trading Asia ex Japan REIT Index ETF/ ABF Singapore Bond Index Fund/ Amova Singapore STI ETF ex-dividend. 
• Thursday, 2 Jul: Singapore 6-month T-bill auction
• Friday, 3 Jul: U.S. market closed

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

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