Key Indices
Top Stories
Sector Update | Banking
- MAS expects core inflation to remain elevated till 1H27 and has increased the rate of appreciation of the S$NEER policy band. Money supply M2 has slowed to a growth of 2.7% yoy in Jul 26, reflecting MAS’ tightening bias. Assuming that the current pace of rise at 5bp/month is maintained, we estimate three-month compounded SORA would reach 1.4% by end-26. Upgrade to MARKET WEIGHT.
Asian Gems Corporate Highlights | Yangzijiang Shipbuilding (YZJSGD SP/BUY/S$5.18/Target: S$5.90)
- During the investor meeting, management sounded incrementally more confident in achieving or exceeding its US$4.5b 2026 contract-win target. Large-vessel delivery slots are guided to have been fully booked through 1H30, and disciplined bidding should preserve margins. 2H26 gross profit margin is expected to remain largely stable despite renminbi appreciation. With Hongyuan yard officially commencing operations in early-27 and an orderbook extending to 2030, earnings visibility remains strong. Maintain BUY and raise our target price to S$5.90, based on 10.1x 2028F PE.
Market Spotlight
- US stocks were lower on Wednesday. All indices fell as the communication services, utilities and consumer discretionary sectors slid. There were more decliners than advancers on both the NYSE and Nasdaq.
- The FSSTI fell 13.85pt to 5,709.91, on the back of weakness in OCBC, DBS and Singtel, with mid-cap indices rising while small-cap indices fell with a broad market decline on S$2.03b turnover.
Technical Analysis
Jardine Cycle & Carriage (JCNC SP)
- Trading Sell Range: S$26.83-26.84
SATS (SATS SP)
- Trading Sell Range: S$3.83-3.84
Top Stories
Sector Update | Banking
- MAS expects core inflation to remain elevated till 1H27 and has increased the rate of appreciation of the S$NEER policy band. Money supply M2 has slowed to a growth of 2.7% yoy in Jul 26, reflecting MAS’ tightening bias. Assuming that the current pace of rise at 5bp/month is maintained, we estimate three-month compounded SORA would reach 1.4% by end-26. Upgrade to MARKET WEIGHT.
Asian Gems Corporate Highlights | Yangzijiang Shipbuilding (YZJSGD SP/BUY/S$5.18/Target: S$5.90)
- During the investor meeting, management sounded incrementally more confident in achieving or exceeding its US$4.5b 2026 contract-win target. Large-vessel delivery slots are guided to have been fully booked through 1H30, and disciplined bidding should preserve margins. 2H26 gross profit margin is expected to remain largely stable despite renminbi appreciation. With Hongyuan yard officially commencing operations in early-27 and an orderbook extending to 2030, earnings visibility remains strong. Maintain BUY and raise our target price to S$5.90, based on 10.1x 2028F PE.
Market Spotlight
- US stocks were lower on Wednesday. All indices fell as the communication services, utilities and consumer discretionary sectors slid. There were more decliners than advancers on both the NYSE and Nasdaq.
- The FSSTI fell 13.85pt to 5,709.91, on the back of weakness in OCBC, DBS and Singtel, with mid-cap indices rising while small-cap indices fell with a broad market decline on S$2.03b turnover.
Technical Analysis
Jardine Cycle & Carriage (JCNC SP)
- Trading Sell Range: S$26.83-26.84
SATS (SATS SP)
- Trading Sell Range: S$3.83-3.84
Key Indices
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