Stocks climb on AI enthusiasm: Weekly Market Recap

I spoke with some of you at events this week, and one concern kept coming up, inflation and interest rates.

It is not hard to see why. From petrol to food to taxi rides, everyday costs seem to be creeping up again.

Some investors are also wondering if this is starting to feel like 2022, when inflation rose sharply and interest rates followed. Either way, it is a timely reminder that interest rate volatility has not gone away.

This week, the cut off yield for the 6 month Singapore T bill rose to 1.45% p.a., as global bond yields climbed. We take a closer look at whether it is worth applying for the latest Singapore Savings Bond, which offers a 10 year average return of 2.11%, or whether it may make sense to wait for the next one.

Against this backdrop, we also share why we are looking beyond beyond Singapore REITs to blue chip stocks for dividend income. For investors looking for income ideas, we look at Singapore blue chip stocks offering dividend yields of above 6%.

At the same time, higher interest rates have not stopped investors from looking at tech stocks. We highlight three Singapore tech stocks riding the AI boom.

And for investors who want to keep investing for long term growth without trying to guess every market move, we explore how a dynamic regular savings plan can help with value averaging.

With interest rates potentially rising again, this may be a good time to revisit our four pots of wealth, especially our Income Pot. The goal is not to predict every move in interest rates, but to make sure our portfolio is steady enough to carry us through different conditions.

Happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

📊 AI enthusiasm pushes markets higher

What happened? 

Markets ended the week higher, supported by renewed optimism around artificial intelligence.

NVIDIA delivered another strong set of results, reinforcing confidence that demand for AI infrastructure remains strong. 

The company continues to benefit from heavy spending by global technology firms on AI chips and data centres.

What does this mean?

AI optimism helped offset concerns over higher bond yields.

US Treasury yields remained elevated, with the 10-year yield trading above 4.5% and the 30-year yield staying above 5.0%, as investors worried that inflation may remain sticky.

In Singapore, the cut-off yield for the latest 6-month T-bill rose slightly to 1.45% p.a. in the auction on 21 May.

Why should I care?

The S&P 500 closed the week higher, while the Nasdaq Composite also gained on positive sentiment towards technology earnings and guidance.

In Asia, the Hang Seng Index extended its losses as weaker China economic data weighed on sentiment.

In Singapore, the Straits Times Index (STI)  reached a new record high, supported by gains in DBS and OCBC as investors adjusted to the possibility that interest rates may stay higher for longer.

Learn more about what is driving the interest in AI, and find out if the AI rally has gone too far.

🚗  Moving This Week

• Singtel reported underlying net profit which rose 12% to S$2.77 billion, supported by stronger contributions from Airtel, AIS, NCS, Digital InfraCo and Optus. Net profit jumped 40% to S$5.61 billion, boosted mainly by exceptional gains from partial stake sales in Airtel. Singtel also declared its highest annual dividend of 18.5 cents per share, including value realisation dividends, with a final dividend of 10.3 cents per share. Read more here
• ST Engineering reported a stronger first quarter for FY2026. Revenue rose 11% year on year to S$3.26 billion, supported by broad-based growth across its business segments. Excluding LeeBoy, the US construction machinery unit that was divested, revenue growth would have been 15% on a rebased basis. The group also said earnings growth outpaced rebased revenue growth, and declared an interim dividend of 4 cents per share for the quarter. Read more here
• Keppel’s planned S$1 billion sale of M1 to Simba has been terminated after IMDA suspended its review of the deal. As a result, Keppel will allow the sale agreement to lapse on 21 May and remove the M1 divestment from its 2025 monetisation plans. Keppel said its 2026 target to monetise S$2 billion to S$3 billion of non-core assets remains unchanged. However, the delay could defer potential special dividends of about 7 to 11 cents per share. The group will now restructure M1, with a focus on rightsizing and cost reduction, while remaining open to discussions with other potential buyers after the current agreement expires. Read more here
• Singapore Airlines Group reported stronger passenger demand in April. Passenger traffic rose 7% year on year to 13.7 billion revenue passenger kilometres, outpacing a 6.3% increase in capacity. Separately, SIA said its investment in Air India remains a long-term commitment, despite the Indian carrier posting S$3.8 billion in losses for FY2026. SIA owns a 25.1% stake in Air India and said it will continue to support the airline’s transformation. Read more here
• City Developments Limited and its associates sold 242 residential units worth S$609.6 million in 1QFY2026, lower than the strong sales recorded a year earlier. Sales were supported by the launch of Newport Residences, which is now 78% sold. Other projects including The Orie, The Myst, Zyon Grand and Norwood Grand also continued to see strong take-up rates. CDL also acquired a Tanjong Rhu Road GLS site in a joint venture with Woh Hup Holdings, where it plans to develop about 518 apartments. Read more here
• Yangzijiang Shipbuilding has secured US$1.03 billion in new orders year to date, bringing its outstanding order book to US$22.3 billion. The latest contracts cover 24 vessels, mainly small to mid-sized ships. The new wins move the group closer to its FY2026 order target of US$4.5 billion, despite ongoing geopolitical tensions affecting sentiment in the global shipbuilding market. Read more here
• Lendlease Global Commercial REIT reported a positive retail rental reversion of 12.2% for the third quarter ended Mar 31. The REIT also completed the acquisition of the remaining 30% stake in PLQ Mall, giving it full ownership of the asset. Portfolio occupancy improved to 95.3%, while its retail portfolio achieved near-full occupancy of 99.7%, supported by strong tenant demand. Read more here
• AIMS APAC REIT has secured a second unsecured sustainability-linked loan comprising S$450 million and A$160 million in revolving credit facilities. The REIT also announced a separate A$115 million unsecured Australian syndicated loan. The sustainability-linked loan includes targets tied to reducing carbon emissions, expanding solar capacity and increasing the proportion of green leases across its portfolio. Read more here
• Golden Agri-Resources reported a 20% decline in first-quarter net profit to US$44 million. The weaker performance was mainly due to lower contributions from its upstream segment, as both palm product output and selling prices declined. Average crude palm oil prices fell 2% year on year to US$1,136 per tonne during the quarter. Read more here

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

Why I’m looking beyond Singapore REITs to blue chip stocks for income

We compare Singapore REITs and blue chip stocks, and explain why a broader mix may help investors build more resilient income.

🤓 What we're looking out for next week

Key dates

• Monday, 25 May: Singapore Q1 GDP, US Memorial Day (US markets closed)
• Tuesday, 26 May: ST Engineering, iFast, Thai Beverage, NetLink NBN Trust ex-dividends,  SIAS Corporate Connect: Wee Hur Holdings,
• Wednesday, 27 May: Singapore Public Holiday
• Thursday, 28 May: US PCE (Personal consumption expenditures) price data

Get the full list of stocks with upcoming dividends here. 

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