SpaceX IPO lifts sentiment as US stocks rebound: Weekly Market Recap

The World Cup kicked off this week.

I’m not a football fan, but it is hard not to notice the excitement building. There is more merchandise in stores, and more conversations are starting to turn towards which team everyone is supporting.

Thankfully, the World Cup did not stop many of you from joining us at our event this week.

One of the topics we spent quite a bit of time on was how quickly interest rate expectations have shifted. In some ways, it reminded me of how quickly the score in a football match can change. One moment, markets were expecting rate cuts. The next, stronger inflation and jobs data made investors rethink that view.

We are seeing this in Singapore too. The yield on the 6-month Singapore T-bill recently jumped to its highest level this year. So we looked at what this could mean for the upcoming T-bill auction on 18 June.

This shift in rate expectations has also weighed on Singapore REITs. Share prices have been weak so far this year, but that has also led to more attractive yields. We look at whether Singapore REITs now offer better value, with the sector trading at a dividend yield of 5.9%. We also identify several Singapore blue-chip REITs with dividend yields above 5.0%, to see if they could fit into our income pot.

Another area that continues to attract attention is data centre REITs. With AI driving demand for digital infrastructure, we compare four data centre REITs and their portfolios to find out which one stands out.

Beyond REITs, we also look at ComfortDelGro. Its share price has declined recently, so we examine whether the transport company’s dividend yield now looks more attractive for income investors.

For those of us trying to build a portfolio in this uncertain rate environment, we also share 5 SGX ETFs that can be used to build a Singapore-dollar portfolio.

Lastly, since the World Cup is now underway, we thought it would be a good time to add a little fun to your investing journey. Open and fund a new brokerage account through Beansprout with participating brokers, and you could stand a chance to win a $100 Matchday Care Pack weekly from 10 June to 19 July 2026.

As the football experts around me keep saying, a good team needs both defence and attack.

I think that is a useful way to think about our portfolios too.

In the Beansprout four pots of wealth, the liquidity pot and income pot can provide stability and support. The growth pot and opportunity pot can help us work towards our longer-term financial goals.

To score our financial goals, we need to build each pot well, and make sure our portfolio is not relying on just one player to do all the work.

Happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

📊 U.S. equities closed higher on Space X IPO debut

What happened? 

US headline inflation rose to a 3-year high of 4.2% year-on-year in May, driven by higher energy prices. 

With recent jobs data remaining strong and price pressures picking up, expectations for Fed rate hikes have increased.

Notably, the European Central Bank also raised interest rates during the week to address upside pressure to inflation. 

Markets are now expecting the Fed to signal that interest rates may stay elevated for longer at next week’s Federal Open Market Committee meeting.

What does this mean?

With an uncertain interest rate outlook, AI-related and memory stocks saw more volatility after the strong rally over the past two weeks.

SpaceX made a strong IPO debut, opening 20% above its IPO price.

Oracle’s FY26 results came in ahead of expectations, and the company reaffirmed that its AI infrastructure business would continue to drive growth in FY27. However, its share price fell 14% after management announced plans to raise US$40 billion in capital to partly fund US$95 billion in capex for AI infrastructure.

Why should I care?

The S&P 500 index rose 0.6% for the week, while the tech-heavy Nasdaq Composite increased 0.7%. 

The US 10-year Treasury yield stayed elevated at 4.48%, even as concerns over the Middle East conflict eased and oil prices fell.

In Asia, the Hang Seng Index continued to decline, reflecting weaker fund flows and broader caution towards the market.

In Singapore, the Straits Times Index (STI) closed marginally down, shedding 0.5% for the week, as the share prices of DBS, OCBC and UOB pared recent gains. 

🚗  Moving This Week

• DBS will launch tokenised physical gold for retail customers in Singapore in the second half of 2026 through its digibank app. Each DBS Physical Gold Token will be backed by 1g of physical gold stored in a dedicated DBS vault in Singapore, allowing customers to buy, hold and trade gold digitally. Customers will also have the option to redeem their tokens for physical gold, while DBS is exploring a future listing of the token on the DBS Digital Exchange. Read more here
• OCBC will launch physical gold trading and custody services from Jun 10 for institutional clients and high-net-worth customers of its private banking arm, Bank of Singapore. The move expands OCBC’s precious metals offerings and comes amid strong demand for physical gold globally. Bank of Singapore said its clients’ physical gold holdings have grown more than 40% since the end of 2025, driven mainly by ultra-high-net-worth investors. Read more here
• Keppel is expanding its data centre footprint into South Korea through Keppel Data Centre Fund III. The fund has secured land to develop a 60MW greenfield data centre in Ansan, within the Seoul Metropolitan Area, with completion targeted by 2030. Keppel said the project is well-positioned as data centre vacancy in the Seoul Metropolitan Area is low at 1.4%, while new supply from 2025 to 2027 has been fully pre-leased. The investment will add to Keppel’s portfolio of 39 data centres with more than 800MW of gross power capacity as at end-2025. Read more here
• Sembcorp Industries has completed its acquisition of Australian power generator Alinta Energy from Chow Tai Fook Enterprises. The acquisition adds Alinta’s 3.4GW operating portfolio and 10.4GW development pipeline to Sembcorp’s energy platform. This strengthens Sembcorp’s presence in Australia and supports its ambition to grow its energy portfolio and provide more comprehensive energy solutions. Read more here
• Singapore Exchange reported its most active month since October 2007, with securities daily average trading value surging 79% year on year to S$2.4 billion in May. Strong trading activity helped Singapore overtake Jakarta as Southeast Asia’s largest stock market by market capitalisation. Institutional investors remained net buyers of small- and mid-cap stocks for a fifth consecutive month, with total inflows exceeding S$800 million over the past year. Read more here
• Singtel will receive funding from Digital Industry Singapore to support the first phase of its multi-year AI transformation programme. The initiative will focus on AI talent development, governance, technology infrastructure, implementation and workforce redesign over the next three years. Singtel said the programme supports its ambition to become the world’s most intelligent connectivity company, with AI embedded across customer service, network operations and employee workflows. Read more here
• SIA Engineering Company has partnered Safran Aircraft Engines to establish a US$118 million joint venture aircraft engine shop in Singapore. The facility will provide maintenance, repair and overhaul services for CFM Leap engines, which are widely used in newer-generation commercial aircraft. Safran will hold a 51% stake in the joint venture, while SIA Engineering will own the remaining 49%. Read more here
• AEM Holdings, Top Glove Corporation, UI Boustead Real Estate Investment Trust and PC Partner Group have been added to the iEdge Singapore Next 50 indices following the latest quarterly review. They replace Singapore Post, Digital Core REIT, Wee Hur Holdings and China Sunsine Chemical Holdings. The changes will take effect on Jun 22, with the next index review scheduled for September. Learn more about the iEdge Singapore Next 50 indices here.
• UMS Integration has signed an MOU to form a precision engineering joint venture in Vietnam to capture growth opportunities in the semiconductor industry. Under the proposed arrangement, UMS will invest about US$3.6 million for a 51.6% stake in the venture, with final terms still subject to agreement. Management said the partnership is expected to strengthen the group’s manufacturing capabilities through lower costs and improved economies of scale. Read more here 

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

4 Singapore data centre REITs with dividend yields of up to 8%. What income investors may want to watch

We take a closer look at four Singapore data centre REITs offering dividend yields of up to 8% as AI drives demand for data centres.

🤓 What we're looking out for next week

Key dates

• Monday, 15 Jun: ICBC CSOP FTSE Chinese Government Bond Index ETF ex-dividend, US Industrial production (May)
• Tuesday, 16 Jun: US Housing starts (May)
• Wednesday, 17 Jun: Singapore NODX (May), FOMC meeting decision
• Thursday, 18 Jun: Singapore 6-month T-bills auction, US initial job claims (week ending 13 Jun)
• Friday, 19 Jun: U.S markets closed.

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

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