Tech selloff weighs on global stocks: Weekly Market Recap

I was in a taxi heading to a meeting this week when the driver suddenly asked me if I liked durians.

Apparently, durians are now at their cheapest in five years, with Mao Shan Wang going for around $20 per kg because of oversupply.

This caught my attention as it feels like there are not many things that have actually become cheaper in recent years.

But of course, not everything is getting cheaper. On the other side, Apple has raised the prices of its iPhones, as a shortage of memory chips driven by strong AI demand pushes up costs.

This is why the inflation outlook remains so uncertain. Prices are not moving in one clear direction, and that makes it harder to tell where interest rates may go next.

After the US Federal Reserve raised its inflation outlook for 2026, we look at what this could mean for the upcoming six month Singapore T bill.

We also look at what the interest rate outlook may mean for Singapore REITs, which have remained under pressure as rates stay elevated.

At the same time, Singapore banks have continued to climb to record highs. With share prices having rallied strongly, we look at whether the dividend yields of DBS, UOB and OCBC are still attractive for investors.

Another area that has caught our attention is Singapore’s construction sector. Spending in the sector is expected to reach close to a ten year high, which should sound like good news.

But interestingly, some of the worst performing stocks in the Singapore Next 50 index also have exposure to construction. We take a closer look at what may be driving this weakness.

With the changing inflation and interest rate outlook, we would also like to invite you to join our upcoming event on 30 June, where we will discuss the outlook for Singapore REITs. Sign up for free here.

Hope to see you there, and happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

📊 Tech sell-off led markets lower

What happened? 

Technology stocks came under selling pressure this week, as investors grew more cautious after a strong rally in the sector.

The pullback was amplified by a sharp fall in South Korean shares on Tuesday, with the KOSPI tumbling nearly 10%. The index has heavy exposure to memory chip giants such as SK Hynix and Samsung Electronics, both of which fell sharply.

Sentiment was further weighed down by reports citing The New York Times that OpenAI, the maker of ChatGPT, may consider delaying its IPO to 2027.

Separately, Apple raised prices of selected MacBook and iPad models, as higher memory and storage chip costs started to feed through to consumer devices.

This came even as Micron posted strong quarterly results, with revenue and earnings exceeding expectations, supported by demand from data centres.

What does this mean?

Taken together, these developments suggest that while AI related demand remains strong, investors are becoming more sensitive to valuations, chip supply constraints and rising costs across the technology sector.

The sell off in technology stocks offset some of the relief from lower oil prices.

Brent crude price fell to around US$72 per barrel, as more tankers moved through the Strait of Hormuz and concerns about oil supply disruptions eased.

Lower oil prices helped to ease inflation concerns, and investors moderated their expectations of rate hikes this year. 

Why should I care?

The S&P 500 fell 2% for the week, while the technology focused Nasdaq Composite lost 4.6%, as selling pressure in AI and semiconductor related stocks weighed on the broader market.

The US 10 year Treasury yield eased to 4.38%, as lower oil prices helped to reduce some concerns about inflation.

In Hong Kong, the Hang Seng Index lost 5.2% for the week, as similar concerns around AI and technology stocks weakened investor sentiment.

In Singapore, the Straits Times Index (STI)  held up relatively well. The STI was almost unchanged for the week, closing just 0.02% lower.

🚗  Moving This Week

• Singtel has sold a 2.8% stake in Gulf Development for about S$1 billion through a private placement to institutional investors. The transaction is expected to generate cumulative equity gains of around S$140 million for Singtel. Following the sale, Singtel will retain a 4.95% stake in Gulf Development, valued at approximately S$1.8 billion. Read more here
• OCBC plans to double its number of wealth advisers in Indonesia as it expands its wealth business in the country. The bank aims to grow its relationship manager headcount to 400 by the end of the year, through hiring and internal transfers. Client assets in Indonesia have already grown about 11% year on year to 127 trillion rupiah, or around US$7.1 billion. Read more here
• StarHub has appointed Matthew Williams as CEO-designate with immediate effect. He will take over from Nikhil Eapen as CEO on 1 January 2027, after Eapen completes his tenure at the end of this year. Williams joined StarHub in May 2025 as chief of its Consumer Business Group and was appointed deputy CEO in May 2026. Read more here
• Singapore Airlines plans to issue its inaugural five-year offshore yuan (CNH) benchmark bond under its S$10 billion medium-term note programme. The airline has appointed Bank of China, DBS, HSBC and Standard Chartered to arrange the potential offering, citing favourable conditions in the offshore renminbi bond market. The issuance would diversify SIA’s funding sources and mark its debut in the offshore yuan bond market. Read more here
• ComfortDelGro has opened its autonomous vehicle shuttle service in Punggol to the public for free. Rides can be booked through the Zig app or the government-backed BookingSG platform. The 25-minute route includes stops at Punggol Coast Mall, One Punggol/Sam Kee LRT station and Block 420A Northshore Drive. Read more here
• Mapletree Pan Asia Commercial Trust has secured a S$150 million multi-currency loan facility through its subsidiaries. The facility includes provisions that could trigger immediate repayment if the REIT manager resigns or is removed without a suitable replacement, or if the manager ceases to be a subsidiary of sponsor Mapletree Investments. Read more here
• OUE REIT will be selling the Crowne Plaza Changi Airport hotel for S$500 million to a Tokyo Century-OUE joint venture. The sale represents about a 1.3 per cent premium to the average of two independent valuations. The manager intends to distribute S$20 million of the net cash proceeds to unitholders evenly as special distributions over the first two years after the divestment is complete. 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 income investors after the rally

DBS, OCBC and UOB are near record highs. We compare their earnings growth, capital strength and dividend sustainability to see which bank looks strongest for income.

🤓 What we're looking out for next week

Key dates

• Tuesday, 30 Jun: Beansprout x CMC event: REITs as a source of passive income in 2026: Can they still deliver?
• Wednesday, 1 Jul:  Singapore Savings Bonds issue, Amova SGD IG Corporate Bond Index ETF/ Straits Trading Asia ex Japan REIT Index ETF/ ABF Singapore Bond Index Fund/ Amova Singapore STI ETF ex-dividend.
• Thursday, 2 Jul: Singapore 6-month T-bill auction
• Friday, 3 Jul: U.S. market closed

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

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