Stocks and T-bill yields fall on slowdown fears: Weekly Market Recap

In many conversations I’ve had with peers and young adults, the $1 million milestone frequently comes up. It’s a natural goal for those aiming to retire comfortably.

But as we learned in our second Money Diaries interview, life doesn’t always go as planned. Our guest, a 40-year-old Singaporean, lost both parents to cancer and was recently retrenched, reminding us how unpredictable life can be.

Having started my career during the Global Financial Crisis and seeing many friends face retrenchment in recent years, I’ve come to realise that financial security isn’t just about hitting a number, but aligning your financial goals with what truly brings you long-term happiness.

As we share this week, the journey to $1 million isn’t just about the money. Instead, it’s about:

• Finding ways to increase your income
• Building a disciplined savings habit
• Investing consistently to grow your wealth

When investing, research is key, and a diversified portfolio helps manage risk. With the latest 6-month T-bill yield falling to 2.75%, this could also be an opportunity to explore other income options like Singapore REITs, high-dividend stocks, or bond funds.

If you’re keen to develop the millionaire mindset, join us at the upcoming Nikko AM event, “Millionaire in the Making: Path to Your First Million”, where we’ll be sharing more on the habits and strategies to get there! 

Happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

💰 US consumer confidence weakens

What happened? 

The US Consumer Confidence Index dropped 7 points to 98.3 in February, marking the sharpest monthly decline since August 2021.

The report also highlighted a sharp rise in 12-month inflation expectations, climbing from 5.2% to 6% in February.

Meanwhile, US President Trump reaffirmed plans to impose new levies on key trade partners by March 4.

What does this mean?

The decline in consumer confidence adds to recent economic data suggesting that persistent inflation is dampening consumer sentiment.

This has intensified concerns about broader economic growth, as higher prices continue to weigh on spending and optimism.

Why should I care? 

The S&P 500 slipped, while the Nasdaq Composite posted its worst weekly drop since early September.

Tech stocks, particularly the Magnificent Seven, fell as regulatory uncertainty and concerns over the sustainability of the AI-driven rally weighed on sentiment.

NVIDIA shares tumbled 8.5% on Thursday, even after delivering stronger-than-expected revenue and earnings. We take a closer look at what’s behind the decline and what it means for investors.

🚗  Moving This Week

• OCBC reported a net profit of S$1.69 billion for the fourth quarter ended December, below market expectations of S$1.78 billion. OCBC announced a slightly lower final dividend of S$0.41 per share, as well as a special dividend of S$0.16. The company announced plans to return S$2.5 billion of capital to shareholders over two years via special dividends and share buybacks.  Read our analysis here.
• CapitaLand Investment underlying profit for FY2024 fell 10% y-o-y to $510 million, mainly due to absence of contribution from divested properties. The company proposed to distribute a core dividend of S$0.12 per share, as well as a special dividend-in-specie of 0.031 CapitaLand Integrated Commercial Trust (CICT) unit per share – valued at S$0.06 apiece. This brings the total dividend for financial year 2024 to about S$0.18.  Read more here.
• Sembcorp Industries reported an underlying net profit of $487 million for the second half of 2024, an increase of 17% compared to the previous year. This was driven by higher earnings in the Gas and Related Services and Integrated Urban Solutions segments. The company has proposed a final dividend of 17 cents per share, which will bring the total dividend for FY2024 to 23 cents per share. Read more here.
• ST Engineering reported a net profit of $366 million for the second half of 2024, an increase of 19.6% compared to the previous year. This was driven by an increase in revenue in the defence and public security, as well as commercial aerospace segments. The company plans to pay a higher dividend of 5 cents per share for 4QFY2024, up from the usual 4 cents per quarter. Read more here.
• City Developments executive chairman Kwek Leng Beng said that he had filed court papers to deal with the “attempted coup” – by group chief executive officer and his son Sherman Kwek, Philip Lee, Wong Ai Ai and a group of directors acting with them – to allegedly consolidate control of the board and the group. City Developments said that its “business operations remain fully functional and unaffected”, and Sherman Kwek remains the “group CEO until such time as there is a board resolution to change company leadership”. Read more here.
• Yangzijiang Shipbuilding reported earnings of RMB6.63 billion ($1.22 billion) for the FY2024 ended Dec 31, 2024, an increase of 62% compared to the previous year. The higher profit was driven by higher shipbuilding revenue and gross margin. The company has recommended a final dividend of 12 cents per share. The company’s share price fell earlier after the US Trade Representative (USTR) office proposed to impose fees on Chinese-built vessels entering US ports. Read more here.

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

$1 million net worth achievable? Here's what I'm doing

 Is achieving a $1M net worth in Singapore possible? We break down the math, mindset, and key strategies to help you reach this milestone.

🤓 What we're looking out for next week

• Monday, 3 March: Singapore Savings Bonds applications open
• Friday, 7 March: US employment data

Source: SGX, Bloomberg, Refinitiv

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