Stocks climb on easing rate hike fears: Weekly Market Recap

Whenever I catch up with friends these days, I seem to hear the same thing. “How I wish I could retire early.”

But in reality, I know very few people who actually feel ready to do it.

That is why a recent survey caught my attention. While 75% of Singaporeans surveyed said a secure retirement was important to them, only 28% felt they were on track to achieve it.

I think part of the problem is that retirement can feel like one giant number sitting somewhere in the distance. And when that number feels too far away, it is easy to wonder if we are making enough progress at all.

In addition to building up our CPF savings and investing with our SRS, one way we think about this at Beansprout is to break our money into four pots. I find that much less intimidating than staring at one retirement number and hoping for the best.

Instead of asking, “Will I have enough to retire?”, we can ask a simpler question: “What is the next best thing I can do with this part of my money?”

For investors looking to build up their Income Pot, we look at three Singapore blue chip stocks that have raised their dividends. We also speak to the management team at Parkway Life REIT in our latest kopi-C interview to find out more about a REIT many income investors have long seen as a steady name.

For the Opportunity Pot, we dive deeper into DBS, UOB and OCBC after their latest earnings and compare which Singapore bank may offer the most potential from here.

For those with a longer time horizon, we look at how the Growth Pot can benefit from compounding over time, including our comparison of the best S&P 500 ETFs for gaining exposure to the US market.

And for money that we simply want to keep safe and liquid, we look at why the latest T-bill yield dipped to 1.56%, and what that means for investors looking to park their spare cash.

Retirement may still feel like a long way off. But perhaps we do not need to solve the whole thing at once.

Sometimes, it is enough to ask, “What is the next best thing I can do with my money?”, then keep filling up each pot along the way.

Happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

📊 Stocks climb on strong earnings and easing rate hike fears 

What happened? 

Singapore’s economy continued to outperform expectations, with second quarter GDP rising 5.9% year on year.

Following the stronger than expected first half, Singapore raised its 2026 GDP growth forecast to 4.5% to 5.5%, from 2% to 4% previously.

MTI said the upgrade reflected stronger growth in the first half, supported by AI related investment and trade.

What does this mean?

The stronger growth outlook provides a supportive backdrop for Singapore companies, even as investors continue to watch the direction of US interest rates.

In the US, inflation continued to ease in July. Headline CPI rose 3.4% year on year, while core CPI increased 2.5% year on year.

July marked the second consecutive month in which both headline and core inflation eased on a year on year basis.

The softer inflation data reduced concerns about further Fed tightening. Following the report, the probability of a September rate hike fell to around 32%, from roughly 52% before the release, according to the CME FedWatch Tool.

What we are watching

Investors will be watching the July FOMC meeting minutes next week for further clues on what could drive the Fed’s next move.

Meanwhile, the second quarter earnings season is largely complete. Around 91% of S&P 500 companies have reported results, with 87% of the 455 companies that have reported beating analysts’ earnings expectations.

Earnings growth has also remained strong, with S&P 500 earnings per share growth currently tracking at around 26% to 29%.

Why should I care?

Markets remained resilient amid the stronger earnings and easing inflation backdrop.

The S&P 500 gained 0.4% over the week to reach a new record high, while the Nasdaq Composite was largely flat, as capital raising by tech companies weigh on stock prices.

With the strong economic growth data, Singapore’s Straits Times Index reached record highs with a gain of 0.8%.

🚗  Moving This Week

• CapitaLand Integrated Commercial Trust reported a stronger first half, with DPU rising 7.1% year on year to 6.02 cents despite a larger unit base. Gross revenue increased 7.5% to S$846.8 million, while net property income grew 8.7% to S$630.5 million. Growth was driven by contributions from CapitaSpring’s commercial component and Gallileo, partly offset by the divestment of Bukit Panjang Plaza. Read here for Beansprout’s quick take
• Singtel reported lower headline earnings for 1QFY2027, as exceptional gains from a year earlier did not recur. Net profit fell 71.6% year on year to S$818 million, compared with a quarter that included S$2.2 billion of gains from its partial Airtel stake sale and the Intouch-Gulf Energy merger. Excluding exceptional items, underlying net profit rose 21% to S$831 million, supported by stronger contributions from Airtel, AIS, NCS, Optus and Digital InfraCo. Read more here
• ST Engineering reported a stronger first half, with revenue rising 11.1% year on year to S$6.57 billion. Earnings grew faster than revenue, rising 27.1% to S$512.1 million, supported by better margins and a more favourable business mix. ST Engineering plans to pay a 2QFY2026 interim dividend of 5 cents, up from 4 cents a year ago, and is guiding for another 5 cents dividend for 3QFY2026. The company secured S$2.9 billion in new contracts in Q2 2026, down 38.3% from S$4.7 billion a year earlier. Order wins declined across all three key segments, with commercial aerospace and defence each bringing in S$1.2 billion, while urban solutions and satcom contributed S$500 million. Read more here
• Sembcorp reported underlying net profit of S$369 million for 1H2026, down from S$491 million a year earlier. On a pro forma basis, assuming the Alinta acquisition had been completed from 1 January 2026, underlying net profit would have been higher at S$558 million. The group declared an interim dividend of 11 cents per share, up 2 cents from 1H2025, reflecting confidence in its future performance. Read more here.
• Singapore Exchange is looking to broaden its ETF offerings as it strengthens its position as a regional multi-asset exchange. SGX currently has 53 ETFs with more than S$21 billion in AUM and is exploring products across more asset classes and sectors, including potentially single-stock and leveraged ETFs. Read more here 
• City Developments reported a stronger 1H2026, with PATMI tripling to S$301.6 million from S$91.2 million a year earlier. Pre-tax profit rose 188.6% to S$403.8 million, while CDL doubled its interim dividend to 6 cents per share.  Read more here. 
• UOL Group reported a 23% year-on-year increase in 1HFY2026 PATMI to S$252.2 million, supported by fair value gains and stronger underlying operations. Operating PATMI rose 16%, driven by higher contributions from property development joint ventures and property investments, despite group revenue declining 7%. Read more here
• Wilmar International reported a 2.3% year-on-year increase in 1HFY2026 PATMI to US$609 million, supported by stronger performances across its feed and industrial products and food products businesses. Revenue rose 17.2% to US$38.5 billion, while core net profit increased 9.9% and Wilmar raised its interim dividend by 25% to 5 cents per share. Read more here 
• Genting Singapore reported a 34% year-on-year decline in 1HFY2026 net profit to S$156 million, weighed down by higher depreciation, lower interest income and asset refresh works. Revenue slipped 1% as weaker gaming revenue offset a 6% increase in non-gaming revenue, supported by refreshed attractions and hospitality offerings. Read more here 
• Hong Leong Asia reported a 64.1% year-on-year increase in 1HFY2026 earnings to S$91.9 million, driven by strong performances from Yuchai and its building materials business. Revenue rose 17.6% to S$3.13 billion, with Yuchai benefiting from higher powertrain sales and strong demand for marine, genset and industrial engines. Read our analysis here 
• MoneyMax Financial Services reported a 73.7% year-on-year increase in 1HFY2026 net profit to S$52.5 million, driven by strong growth across its pawnbroking and gold and luxury retail businesses. The group also expanded to 139 stores and raised S$44.3 million alongside its transfer to the SGX Mainboard, providing additional capital to support further growth. Read our analysis here
• AEM reported a sharp improvement in 1H2026, with net profit rising to S$31 million from S$3.1 million a year ago. The recovery was driven by stronger demand for its test equipment from AI and high-performance computing chipmakers. This marked its fourth straight quarter of net profit growth and third straight quarter of revenue growth, led by stronger demand for advanced test-cell solutions. Read more here 
• Digital Core REIT is reshuffling its portfolio by selling stakes in three North American data centres and reinvesting into assets in Singapore and Osaka. The REIT will divest interests in assets in Toronto, Los Angeles and Northern Virginia, while acquiring a 2.5% stake in 11 Loyang Close in Singapore and raising its stake in Digital Osaka 3 to 45%. Digital Core REIT expects the deal to be 4.1% DPU-accretive, while aggregate leverage is expected to improve from 39.2% to 36.3% on a pro forma basis. Read more here. 
• NetLink NBN Trust reported a 22.4% year-on-year decline in 1QFY2027 net profit, mainly due to higher depreciation from its larger asset base. Revenue slipped 1.4% on lower installation-related revenue, while EBITDA fell 4% as operating expenses increased. Read more here 

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

DBS vs OCBC vs UOB: Which Singapore bank looks best for investors after the rally

DBS, OCBC are near record highs after their earnings, while UOB has lagged. We compare their earnings and dividend sustainability to see which bank looks most attractive for investors.

🤓 What we're looking out for next week

Key dates

• Monday, 17 Aug: OCBC, UOB, CapitaLand India Trust ex-dividend. Singapore NODX (July)
• Wednesday, 19 Aug: AEM Holdings, CapitaLand Integrated Commercial Trust, Wilmar International ex-dividend. SATS results. U.S FOMC minutes 
• Thursday, 20 Aug: City Developments, Jardine Matheson, Hongkong Land, Starhub, CSE Global, DFI Retail Group, Stoneweg Europe Stapled Trust, Ultragreen.AI ex-dividend. Walmart results
• Friday, 21 Aug: ST Engineering, Sembcorp Industries ex-dividend.

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

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