Analyst
Analyst
Highlights
- The STI dropped 1.4% mom to 5,676 in Sep 26. Banks (+0.6%) and aviation (+0.3%) held up, but plantation, property, REITs and telecoms sustained losses of 5.6%, 5.7%, 4.7% and 5.3% respectively. Sentiment was affected by geopolitical tensions emanating from the Middle East and the first interest rate hike instituted by new Fed chairman Kevin Warsh.
- Key events: a) MAS announced the third batch of its EQDP; b) SGX RegCo introduces enhanced disclosure rules on remuneration, dividend policies and investor relations; and c) skirmishes between Houthi rebels and Yemeni government forces backed by Saudi Arabia.
- Key upcoming events: a) MAS October monetary policy review, b) FOMC meeting on 28 Oct 26, c) SGX reduces board-lot sizes for trading of 11 stocks starting 5 Oct 26, d) Singapore’s advance GDP estimate for 3Q26, e) Formula 1 Singapore Grand Prix, and f) Singapore International Energy Week.
What’s New
- STI performance. The Straits Times Index (STI) fell 1.4% mom in Sep 26. Banks (+0.6%) and aviation (+0.3%) held up, but plantation, property, REITs and telecoms sustained losses of 5.6%, 5.7%, 4.7% and 5.3% respectively.
- Top outperformers. The top gainers were semiconductor stocks Frencken (FRKN, +12.0%), AEM (+10.6%) and UMS (UMSH, +1.9%), driven by strong 2Q26 results from Nvidia, AMD and TSMC. Construction player and ready-mix concrete supplier Pan United gained 10.2%. Laggard YZJ Shipbuilding gained 6%. UOB (+3.1%) and OCBC (+1.5%) benefitted from US rate hike and higher bond yields. UIBREIT gained 1.3% due to inclusion in the FTSE Global Equity Index Series Asia Pacific Small Cap Index on 21 Sep 26 and iEdge S-REIT Index and iEdge S-REIT Leaders Index on 28 Sep 26.
- Top underperformers. Food Empire (FEH) lost 17.3% due to concerns over its Russia exposure. Sea Limited (SE) lost 13.1% due to profit taking after a steep run-up in August. SGX dropped 11.3% due to expensive valuations and downgrades from foreign brokers. CityDev (CIT) eased 11.2%, weighed down by its strategic review, which underwhelmed investors’ expectations.
- MAS will allocate S$1.45b to five managers – Amundi, Franklin Templeton, HSBC AM, M&G Investments and Natixis Investment Managers – in the third batch of its Equity Market Development Programme (EQDP). This brings total allocations to S$5.4b across 14 managers under the S$6.5b programme. MAS expects to complete its review of a fourth batch in 2027. It also committed S$20m to strengthen equities market-making activities.
- SGX RegCo plans to introduce enhanced disclosure rules on remuneration, dividend policies and investor relations, effective from 1 Jan 27, to strengthen transparency and encourage long-term value creation. Annual reports must explain the financial and non-financial indicators used to determine executive pay and how they support long-term value creation.
- AI demand drives NODX growth. Non-oil domestic exports (NODX) rose 46.2% yoy in Aug 26, accelerating from 24.1% growth in July. Electronics exports surged 131.8% yoy, driven by AI-related demand for integrated circuits, disk media products and PCs, while non-electronics exports rebounded 12%. The headline growth benefitted from a low comparison base in Aug 25. Cumulative NODX growth reached 22.4% for 8M26.
Highlights
- The STI dropped 1.4% mom to 5,676 in Sep 26. Banks (+0.6%) and aviation (+0.3%) held up, but plantation, property, REITs and telecoms sustained losses of 5.6%, 5.7%, 4.7% and 5.3% respectively. Sentiment was affected by geopolitical tensions emanating from the Middle East and the first interest rate hike instituted by new Fed chairman Kevin Warsh.
- Key events: a) MAS announced the third batch of its EQDP; b) SGX RegCo introduces enhanced disclosure rules on remuneration, dividend policies and investor relations; and c) skirmishes between Houthi rebels and Yemeni government forces backed by Saudi Arabia.
- Key upcoming events: a) MAS October monetary policy review, b) FOMC meeting on 28 Oct 26, c) SGX reduces board-lot sizes for trading of 11 stocks starting 5 Oct 26, d) Singapore’s advance GDP estimate for 3Q26, e) Formula 1 Singapore Grand Prix, and f) Singapore International Energy Week.
What’s New
- STI performance. The Straits Times Index (STI) fell 1.4% mom in Sep 26. Banks (+0.6%) and aviation (+0.3%) held up, but plantation, property, REITs and telecoms sustained losses of 5.6%, 5.7%, 4.7% and 5.3% respectively.
- Top outperformers. The top gainers were semiconductor stocks Frencken (FRKN, +12.0%), AEM (+10.6%) and UMS (UMSH, +1.9%), driven by strong 2Q26 results from Nvidia, AMD and TSMC. Construction player and ready-mix concrete supplier Pan United gained 10.2%. Laggard YZJ Shipbuilding gained 6%. UOB (+3.1%) and OCBC (+1.5%) benefitted from US rate hike and higher bond yields. UIBREIT gained 1.3% due to inclusion in the FTSE Global Equity Index Series Asia Pacific Small Cap Index on 21 Sep 26 and iEdge S-REIT Index and iEdge S-REIT Leaders Index on 28 Sep 26.
- Top underperformers. Food Empire (FEH) lost 17.3% due to concerns over its Russia exposure. Sea Limited (SE) lost 13.1% due to profit taking after a steep run-up in August. SGX dropped 11.3% due to expensive valuations and downgrades from foreign brokers. CityDev (CIT) eased 11.2%, weighed down by its strategic review, which underwhelmed investors’ expectations.
- MAS will allocate S$1.45b to five managers – Amundi, Franklin Templeton, HSBC AM, M&G Investments and Natixis Investment Managers – in the third batch of its Equity Market Development Programme (EQDP). This brings total allocations to S$5.4b across 14 managers under the S$6.5b programme. MAS expects to complete its review of a fourth batch in 2027. It also committed S$20m to strengthen equities market-making activities.
- SGX RegCo plans to introduce enhanced disclosure rules on remuneration, dividend policies and investor relations, effective from 1 Jan 27, to strengthen transparency and encourage long-term value creation. Annual reports must explain the financial and non-financial indicators used to determine executive pay and how they support long-term value creation.
- AI demand drives NODX growth. Non-oil domestic exports (NODX) rose 46.2% yoy in Aug 26, accelerating from 24.1% growth in July. Electronics exports surged 131.8% yoy, driven by AI-related demand for integrated circuits, disk media products and PCs, while non-electronics exports rebounded 12%. The headline growth benefitted from a low comparison base in Aug 25. Cumulative NODX growth reached 22.4% for 8M26.
Analyst
Analyst
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