US stocks rally and 1-Year T-bill yield climbs: Weekly Market Recap

Shortly after sending out last week’s email, I received news that CPF has officially closed the Special Accounts (SA) for Singaporeans aged 55 and above.

If you’re one of the 1.4 million affected by this change, I’d suggest taking some time to evaluate your options. Having spoken to many recently, it seems there are still questions about what steps to take next. We’ve shared our thoughts on what to consider following the CPF SA closure here..

For those new to CPF, don’t miss our beginner-friendly guides on CPF LIFE and CPF Retirement Sums to help you better understand the system.

In other updates, the 1-year T-bill cut-off yield rose unexpectedly to 2.95% amidst a dip in demand. We explore what this means for the upcoming 6-month T-bill auction and what you need to take note of before participating.

Lastly, we delve into the REIT earnings season. Mapletree Pan Asia Commercial Trust stood out for its sharp decline in distributions, while OUE REIT saw an increase.

As we navigate these changes, I hope you’ve also taken some time to prepare for Lunar New Year and cherish moments with your loved ones during this festive period. 

On behalf of the Beansprout team, I wish you an abundance of health, wealth, and happiness in the Year of the Snake. 

Gerald, Founder of Beansprout

⏰ This Week In Markets

🚀 Trump tariff relief

What happened? 

After his inauguration on Monday, US President Donald Trump refrained from imposing new tariffs immediately.

Instead, he directed federal agencies to review US trade policies and assess the potential impact of future tariffs.

Later in the week, Trump stated that he would “rather not have to use tariffs” on China, signalling a cautious approach to trade measures.

What does this mean?

The absence of immediate tariffs offered some relief to investors, fuelling optimism about the possibility of a US-China trade deal.

However, caution lingered, as Trump reiterated his pledge to impose 25% tariffs on Canada and Mexico, potentially as early as February.

Why should I care? 

US stocks rose to a record high this week, as political developments captured investors' attention.

Singapore REITs delivered mixed results, with earnings season kicking off and companies reporting varied performances.

Notably, US office REITs led the gains, fuelled by Trump’s back-to-office mandate, with Keppel Pacific OAK US REIT surging 16.3%.

Discover the best Singapore REITs using our REITs screener tool. 

🚗  Moving This Week

• Mapletree Industrial Trust reported a distribution per unit of S$0.0341 for its third quarter ended Dec 31, 2024, a 1.5% increase from the previous year. This was driven by an increase in revenue from a newly acquired mixed-use facility in Tokyo, the completion of fitting out works of a data centre in Osaka, as well as new leases and renewals across various property clusters. Read more here.
• Mapletree Logistics Trust (MLT) reported distribution per unit (DPU) of S$0.02003 for its third quarter ended Dec 31, 2024, a decline of 11.1% from the previous year. This was mainly due to lower revenue contribution from China, the absence of contribution from divested properties, and depreciation of various regional currencies against the Singapore dollar. Read more here.
• Mapletree Pan Asia Commercial Trust’s (MPACT) distribution per unit (DPU) fell 9.1% to S$0.02 for its third quarter ended Dec 31, 2024, from S$0.022 in the year-ago period. This was driven by a decline in revenue with the lack of contributions from its divested office property Mapletree Anson, as well as lower contributions from assets overseas, which were further dampened by the persistent strength of the Singapore dollar. Read more here.
• Frasers Centrepoint Trust reported a committed occupancy of 99.5% for its retail portfolio for the first quarter of its financial year ending Sep 30, 2025, declining marginally from 99.7% in the previous quarter.  Read more here.
• OUE REIT’s distribution per unit (DPU) rose 8.7% to S$0.0113 for the second half of its financial year ended Dec 31, 2024. This was supported by higher revenue with stable operational performance of the Reit’s Singapore office portfolio, as well as the successful asset enhancement of Crowne Plaza Changi Airport, which was completed in December 2023.  Read more here.
• Starhill Global REIT’s distribution per unit (DPU) rose 1.1% to S$0.018 for its first half ended Dec 31, 2024, from S$0.0178 in the year-ago period. This was supported by an increase in revenue with higher contributions from its properties in Singapore and Perth, Australia, as well as the appreciation of the Malaysian ringgit against the Singapore dollar. Read more here.

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

CPF Special Account (SA) closed for those 55 and above. 
What should you do?

Learn what happens when the CPF Special Account (SA) is closed for those aged 55 and above. Explore your options and strategies to maximise your CPF savings effectively.

🤓 What we're looking out for next week

• Monday, 27 Jan: CapitaLand Ascott Trust, Keppel REIT earnings
• Tuesday, 28 Jan: Lunar New Year Eve, AIMS APAC REIT, Tesla, Microsoft earnings
• Wednesday, 29 Jan: Lunar New Year Holiday, Meta, Amazon earnings
• Thursday, 30 Jan: Lunar New Year Holiday, Fed meeting decision, Apple earnings

Check out the full list of Singapore stocks, REITs and ETFs with upcoming dividend payments with our dividend calendar.

Source: SGX, Bloomberg, Refinitiv

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