Stocks rebound despite growing uncertainty: Weekly Market Recap

After last week’s newsletter, a reader commented, “It’s so hard to get 3% these days.” And they’re right—T-bill yields have dropped sharply, and the latest indicators suggest they’ll likely stay below 3% in the upcoming auction on 26 March.

With lower yields on T-bills and fixed deposits, investors who are looking for potentially better returns may need to explore other options. 

One option to explore? The current Singapore Savings Bonds (SSB), which offer a 10-year average return of 2.85% while maintaining flexibility for early redemption.

Falling interest rates have also benefited Singapore developers, with property transaction volumes picking up in recent months. We dive into what this means for listed developers.

For Singapore banks, the outlook is a bit more complex. Lower interest rates may impact net interest income, yet DBS, UOB, and OCBC have committed to special dividends in the coming year.

Want to learn more about Singapore banks? Join us for our upcoming webinar on 26 March, where we break down their strong recent performance. Register for free here.

If you’re keen to explore new industries, don’t miss our webinar on 27 March, where we introduce the growing software-as-a-service (SaaS) sector. Register for free here. 

One thing's for sure. With the US central bank flagging rising economic uncertainty, doing our homework before investing is more crucial than ever.

Do join us at our upcoming webinars for a deeper dive into the markets and the opportunities ahead!

Happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

 🏛 US Fed notes increased uncertainty

As expected, the US Fed kept its policy rate unchanged at 4.25%–4.5%.

Officials maintained their projection of two rate cuts this year, as Fed Chair Jerome Powell stated that the impact of tariffs is expected to be temporary.

What does this mean?

Despite maintaining interest rates, the Fed’s post-meeting statement acknowledged rising “uncertainty around the economic outlook.”

Reflecting this uncertainty, policymakers raised their 2025 inflation forecasts while lowering expectations for GDP growth.

Why should I care? 

The S&P 500 edged higher as the Fed kept rate cut hopes alive, while Chinese stocks slipped as investors took a breather after recent gains.

Singapore stocks climbed with further corporate restructuring news, as Sembcorp Industries and ST Engineering led the charge. 

ST Engineering hit an all-time high with a 42% year-to-date gain after the company announced plans to raise dividends in FY2025. The stock has been further buoyed by renewed global interest in defence stocks.

🚗  Moving This Week

• ST Engineering is targeting a revenue of $17 billion and a net profit improvement that outpaces its top-line increases by up to five percentage points annually over the next five years. The company also aims to raise its FY2025 dividend payout to 18 cents per share, comprising of four cents per share for the first three quarters and a final dividend of 6 cents. Read more here.
• Sembcorp Industries is carrying out a strategic review of its business, with various possibilities under consideration, including potentially going private or selling some assets, people with knowledge of the matter said, according to a Bloomberg report. According to the same report, considerations are at an early stage and Sembcorp may decide not to pursue any deal, the people said. Read more here.
• SIA Group’s passenger traffic rose 0.5% year-on-year in February 2025, with a passenger load factor (PLF) of 86.5%, a 0.2 percentage points (ppts) increase year-on-year. However, Scoot saw a 3.7% year-on-year decrease in passengers carried. Read more here.
• CapitaLand Integrated Commercial Trust (CICT) has appointed Tan Choon Siang as CEO, with effect from 1 May 2025. He is currently the deputy CEO of the company. Current CEO Tony Tan will be appointed chief corporate officer of CapitaLand Development. Read more here.
• Developers in Singapore sold 1,575 private homes in February, about 10 times the 153 units moved a year earlier and 45.4% more than the total sold in January, according to data released by the Urban Redevelopment Authority (URA). The latest new sales tally, excluding executive condominiums (ECs), is a 13-year high for the month of February since 2012. Learn more about the prospects of Singapore developers here. 

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

DBS, UOB and OCBC raise dividends. Still attractive at 6% yield?

The find out more about the prospects of Singapore banks.

🤓 What we're looking out for next week

• Monday, 24 March: Singapore inflation data
• Tuesday, 25 March: Singapore Savings Bonds (SSB) application closing date
• Wednesday, 26 March: Singapore 6-month Singapore T-bill auction, Beansprout webinar: What’s next for Singapore banks?
• Thursday, 27 March: Beansprout webinar: Introduction to Software-as-a-Service (SaaS) 

Get the full list of stocks with upcoming dividends here. 

Source: SGX, Bloomberg, Refinitiv

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