SIA 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 gains in global markets following Nvidia’s results, shifting interest rate expectations after the Jackson Hole meeting, and what SIA’s investment in Air India could mean for the airline over the longer term.

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

Weekly Market Review

1:02 - Macro Update

• The S&P 500 gained 0.5% last week to 7,712 points, while the NASDAQ rose 0.8%, supported by technology stocks following Nvidia’s stronger earnings and outlook.
• In Singapore, the STI gained 0.2% and remained close to the 5,700 level.
• Investors also focused on the Jackson Hole meeting, where Federal Reserve Chair Kevin Warsh highlighted continued uncertainty around inflation while noting that US economic growth remained relatively healthy.
• Markets interpreted the comments as reducing the likelihood of near-term rate cuts and increasing the possibility of a rate hike at the upcoming September Federal Reserve meeting.
• The US 10-year Treasury yield rose to 4.73%, while the 1-year Treasury yield reached 4.15% as expectations for tighter monetary policy increased.
• Among Singapore stocks, Yangzijiang Shipbuilding gained 2.9%, Wilmar rose 2.7%, Singtel added 2.7%, SGX gained 2.5% and Seatrium rose 2.3%.
• Jardine-related stocks were among the weaker performers, with Jardine Matheson falling 4.8% and DFI Retail Group declining 3.6%.

STI Top Performers:

• Yangzijiang Shipbuilding
• Wilmar International
• Singtel
• Singapore Exchange
• Seatrium

STI Worst Performers:

• Hongkong Land
• DFI Retail Group
• Genting Singapore
• UOL Group
• Jardine Matheson

Companies in Focus: 

Singapore Airlines (SGX: C6L)

• Singapore Airlines’ share price has pulled back to around S$6.89 after reaching about S$7.50 recently, amid higher oil prices and growing investor concerns about its investment in Air India.
• In the first quarter of FY2026/27, SIA Group revenue rose 19.3% year on year to a record S$5.71 billion, supported by stronger passenger and cargo revenue.
• However, expenditure increased 27.9%, largely because net fuel costs surged 78.5% to S$2.25 billion following the sharp rise in jet fuel prices linked to the Middle East conflict.
• This pushed operating profit down 73.8% year on year to S$106 million, while the group swung from a S$186 million profit a year earlier to a S$76 million net loss.
• The weaker result also reflected a higher share of losses from Air India, highlighting the near-term impact of SIA’s investment in the Indian airline.
• SIA currently owns a 25.1% stake in the enlarged Air India Group, which includes Air India and Air India Express, as part of its strategy to participate directly in the fast-growing Indian aviation market.
• The partnership has continued to deepen. SIA and Air India signed a commercial cooperation framework agreement in January 2026, and as of May, their codeshare network covered 82 destinations across 27 countries and territories.
• SIA sees Air India as an important part of its multi-hub strategy, giving the group access to India’s large domestic network, international traffic rights and long-term growth in air travel beyond Singapore.
• However, Air India continues to face challenges including aircraft supply chain constraints, delays to fleet renewal and cabin retrofits, higher fuel costs, airspace restrictions and disruptions to Middle East routes.
• Despite these challenges, SIA said Air India continues to make progress in its multi-year transformation programme, including fleet renewal, network growth, improvements to its products and services, and better operating performance.
• With SIA’s earnings now affected by both elevated fuel costs and Air India’s losses, investors will be watching whether these pressures ease and whether the strategic benefits of its India investment translate into stronger earnings over the longer term.

Related Links:

• Singapore Airlines (SGX: C6L) latest valuation, share price and analysis
• Singapore Airlines (SGX: C6L) dividend history and dividend forecast
• Can SIA maintain its 4.8% dividend yield? First quarterly loss since 2022

What to look out for this week

Key dates

• Monday, 31 Aug: Venture, CNMC Goldmine ex-dividend. 
• Tuesday, 1 Sep: iShares J.P. Morgan USD Asia Credit Bond Index ETF, iShares  USD Asia High Yield Bond ETF, Jardine Cycle & Carriage, Food Empire ex-dividend
• Wednesday, 2 Sep: Broadcom results
• Friday, 4 Sep: Soilbuild Construction ex-dividend 

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

Follow Beansprout on Telegram, Youtube, Facebook and Instagram, and add Beansprout as your preferred source on Google so you never miss an update.