Singapore stocks up, US market declines amid tariff talk: Weekly Market Recap

As an economics student, I remember learning how tariffs were seen as barriers to free trade. 

Fast forward to today, and tariffs are making headlines again after Trump announced new trade measures against key partners.

Coming off the DeepSeek selloff last week, it’s clear that volatility will be a key theme in the markets this year. 

Yet, amidst the turbulence, Singapore’s stock market has been quietly climbing and is now approaching an all-time high. In fact, Singapore Exchange’s stock just hit its highest level since 2007.

We take a closer look at what’s driving the Singapore market and whether there’s more room to run. To help you navigate this environment, we also speak with a seasoned portfolio manager to understand his outlook for the Singapore market.

If market swings are making you consider safer options, we’ve updated the best fixed deposit rates and best savings accounts for February. Plus, we break down what falling interest rates could mean for the upcoming T-bill auction on 13 Feb.

As Benjamin Graham once said, “The essence of portfolio management is the management of risks, not returns.” 

What I want to share is that despite global policy shifts creating uncertainty, there are still opportunities to grow our wealth—if we remain watchful of the risks.

Happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

🚦Tariff uncertainty

What happened? 

US President Donald Trump announced a 25% tariff on imports from Mexico and Canada and a 10% levy on Chinese imports, set to take effect on February 1.

However, on Monday, Trump stated that he had agreed to delay tariffs on Mexico and Canada for 30 days, signaling possible negotiations ahead.

What does this mean?

The tariff announcement sparked investor concerns, as it could fuel inflation and slow the pace of Fed rate cuts.

Additionally, the move raised fears of weaker global growth while strengthening the US dollar, adding further pressure on global markets.

Why should I care? 

Global stocks initially tumbled on the tariff announcements but rebounded after the postponement of tariffs on Mexico and Canada provided some relief.

However, uncertainty remains with the negotiations with Canada and Mexico ongoing. 

Also, Trump has signaled that tariffs on the European Union are "definitely happening" without specifying details. He also hinted at potential tariffs on Japan, raising concerns about further trade tensions.

Read our analysis of the impact of the trade tariffs on financial markets here. 

🚗  Moving This Week

• SGX reported a net profit of S$340 million for the first half ended December, up 20.7 per cent from S$281.6 million in the previous corresponding period. This was driven by growth across all its business segments. The company declared an interim quarterly dividend of S$0.09 per share. Read more here.
• Keppel reported a profit from continuing operations of S$527.9 million for its second half ended Dec 31, up 19.9 per cent from S$440.3 million in the year-earlier period. The company attributed its higher earnings in H2 to profit growth from its real estate and connectivity segment, offset by lower profit for its infrastructure segment. The company proposed a final cash dividend of S$0.19 per share, unchanged from the previous year. Read more here.
• CapitaLand Integrated Commercial Trust (CICT) reported a distribution per unit (DPU) of S$0.0545 for the second half ended December, unchanged from the previous corresponding period. Distributable income rose 6.4 per cent to S$385.7 million for H2, driven mainly by contributions from its acquisition of Ion Orchard last year. Read more here.
• CapitaLand Ascendas REIT reported (CLAR) reported a distribution per unit (DPU) of 7.681 cents for the second half of 2024, an increase of 3.2% compared to the previous year. CLAR’s portfolio occupancy increased to 92.8% as at 31 December 2024 from 92.1% in the previous quarter, while the average rental reversion for leases signed in 4Q 2024 was 8.6%. Read more here.
• Lendlease REIT’s distribution per unit (DPU) fell 14.3% to S$0.018 for its first half ended Dec 31, 2024. The lower DPU was driven by higher finance costs, lower net property income (NPI), as well as an enlarged unit base. Read more here.
• Keppel Infrastructure Trust (KIT) reported Distribution Per Unit (DPU) of 3.90 cents in FY24, up 1.0% compared to the previous year excluding the special distribution in FY23. Read more here. 

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

Will Singapore stocks hit new highs? Insights from a top fund manager

 We speak to Kenneth Tang, Senior Portfolio Manager of Asian Equity at Nikko Asset Management to find out the outlook for the Singapore market in 2025.

🤓 What we're looking out for next week

• Monday, 10 Feb: DBS earnings
• Wednesday, 12 Feb: Digital Core REIT earnings, US CPI data
• Thursday, 13 Feb: 6-month Singapore T-bill auction

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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