T-bill yield plunges and Nvidia disappoints: Weekly Recap

An interesting survey caught my eye this week: nearly 44% of Singaporeans polled by Singlife said they believe they’ll never achieve financial freedom. 

The top concerns? Inflation, a lack of retirement savings, and the burden of medical expenses.

Speaking of inflation, another bit of news that hit close to home was a local F&B brand raising the prices of its kopi yet again. 

As the cost of a kaya toast set climbs, the T-bill yield has been falling sharply, with the cut-off yield dipping to 3.13% this week.

If you’re also wondering how to achieve financial freedom amidst these challenges, you’re not alone. 

We spoke with an investment veteran to uncover what it takes to build a solid retirement portfolio. 

These practical insights may not lead to financial freedom overnight, but they could help you take meaningful steps closer to your financial goals.

Happy growing!

Gerald, Founder of Beansprout

⏰ THIS WEEK IN MARKETS

📉 Nvidia a drag to tech stocks

What happened? 

Nvidia’s reported quarterly sales and profit that exceeded investor expectations, supported by continued strong demand for its artificial intelligence (AI) chips.  

However, the company’s revenue forecast for the coming quarter of US$32.5 billion disappointed some investors who had predicted that sales may reach as high as US$37.9 billion. 

What does this mean?

Nvidia’s latest earnings led to concerns that its explosive growth is slowing down, and that the artificial intelligence (AI) boom may have peaked.   

There were also concerns of production delays for its much-awaited Blackwell chips, which are much faster than their predecessor and seen as a game-changer in AI computing. 

Why should I care? 

Nvidia’s share price fell by nearly 10% at the stock’s low point on Thursday. This proved to be a drag on the Nasdaq, which ended its winning streak.

Investors rotated into value stocks, as the Dow Jones Industrial Average and Straits Times Index (STI) outperformed. 

Singapore REITs rebounded further with the fall in government bond yields, with gains led by Elite UK REIT, Keppel Pacific Oak US REIT, Starhill Global REIT, Mapletree Pan Asia Commercial Trust and OUE REIT.

🚗  Moving this week 

• Keppel Infrastructure Trust (KIT) has issued 456.6 million new units at an issue price of S$0.438 per unit, representing the highest end of the price range indicated when it proposed its equity fundraising earlier. The placement was about 2.5 times subscribed and will raise about S$200 million. 
• Mapletree Pan Asia Commercial Trust has obtained a HK$ 1 billion (S$169.8 million) term loan facility.
• Sembcorp Industries has resumed operations at its Myingyan Independent Power Plant in Myanmar following a temporary suspension earlier this month.
• Silverlake Axis is offering 36 cents per share to its shareholders in a bid to take the company private. The offer represents a premium of 28.1% over the volume-weighted average price (VWAP) per share for the one-month period including Aug 23.

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The big important story

T-bill yield plunges to 3.13%. Why the sharp fall?

The cut-off yield on the latest Singapore T-bill auction on 29 August fell sharply to 3.13%.

🤓 What we're looking out for next week

• Monday, 2 Sep: SSB application opening date, US stock market closed

• Thursday, 5 Sep: Nio earnings

• Friday, 6 Sep: US Nonfarm Payroll data

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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