Stocks rebound even as bond yields climb: Weekly Market Recap

As 2024 comes to a close, I’ve taken a moment to reflect on the lessons I’ve learned this year.

The biggest takeaway for me? Staying invested matters. Despite global economic uncertainties, the US presidential elections, and even a sharp single-day market sell-off in August, US and Singapore stocks have performed well this year. 

This has reinforced my belief in the power of regular investing as a key money habit—one I plan to carry into 2025. 

If you’re looking to build better financial habits too, check out these four money habits that can help set you up for success in the new year.

For REIT investors, 2024 may not have been as rewarding. That said, we’ve analysed the best-performing REITs of the year to uncover what drove their outperformance.

If you’re considering safer options, we explore what to expect for the upcoming T-bill auction on 2 January 2025, especially with bond yields on the rise again.

Beyond financial habits, one thing I’ve embraced this year is the practice of gratitude. 

On that note, I want to thank you for being part of the Beansprout community and following our journey. Wishing you a prosperous and successful 2025!

Gerald, Founder of Beansprout

⏰ This Week In Markets

📈 US government bond yields soar

What happened? 

US government bond yields rose in relatively light trading after the Fed signalled a slower pace of rate cuts.

The benchmark 10-year US Treasury yield hit an intraday high of 4.64% on Thursday, nearing its 2024 peak of 4.74% reached before the Fed began cutting rates.

What does this mean?

Investors are tempering their expectations for rate cuts in 2025.

The CME FedWatch Tool indicates that markets now anticipate just one rate cut in May 2025. 

Additionally, there is a 17% probability that no rate cuts may occur at all next year.

Why should I care? 

Global stocks edged higher in a quiet trading week, as equity investors appeared to shrug off rising bond yields.

Read our previous analysis on what the slower pace of rate cuts could mean for your portfolio and investment opportunities that this may bring in 2025. 

🚗  Moving This Week

• Singtel is joining a group of fellow Advanced Info Service (AIS) shareholders to offer 211.43 baht each for the remaining 36.25% shares in the Thai telco they do not already own. Singtel's portion of the offer is for 297.4 million shares or 10% of AIS. If the offer is fully taken up it will cost Singtel around 62.9 billion baht, or $2.5 billion. Read more here.
• SingPost has terminated the employment of three of its senior management staff as they were found to be negligent in the handling of internal investigations over a whistleblower’s report that it received earlier this year. The employment of group chief executive Vincent Phang, group chief financial officer Vincent Yik, and the chief executive of the company’s international business unit (IBU) Li Yu were terminated with immediate effect on 21 Dec 2024. Read more here.
• Four ride-hailing operators in Singapore will be raising their platform fees by up to S$0.50 from 1 Jan, 2025, in a move they partly attribute to costs arising from the upcoming Platform Workers Act. ComfortDelGro plans to raise the platform fee for ride bookings from a flat rate of 70 cents now to a variable rate of between $1 and $1.20. Grab Holdings is similarly raising its platform fees for ride-hailing from 70 cents now to 90 cents. Read more here.
• Seatrium has been awarded a contract by BP Exploration and Production Inc to build the Kaskida Floating Production Unit (FPU) to be used in the US Gulf of Mexico. Read more here.
• OUE REIT is selling its entire stake in Lippo Realty, a real estate service provider that manages and operates an office building in Shanghai, to an unrelated entity for 1.9 billion yuan (S$357.4 million). OUE Reit is expected to reap net proceeds of about S$318.2 million from the transaction. Read more here.
• Cromwell European Real Estate Investment Trust will be renamed Stoneweg European REIT (SERT) with effect from Jan 2, following a change in the ownership of its sponsor and substantial unitholder. Read more here.

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

Top 3 Singapore REITs of 2024

The REIT sector may have been in the doldrums, but these three REITs posted the best performance in the S-REIT universe.

🤓 What we're looking out for next week

• Tuesday, 31 Dec 2024: New Year’s Eve
• Wednesday, 1 Jan 2025: New Year Day
• Thursday, 2 Jan 2025: Singapore 6-month T-bill auction, Singapore Savings Bond (SSB) application open

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

Source: SGX, Bloomberg, Refinitiv

Join the Beansprout Telegram group and Facebook group for the latest insights on Singapore stocks, REITs, bonds and ETFs.