🔥 Market Shake-Up: Trump Sparks Fed Chair Turmoil, Techs Slip, Sarepta Soars, FLCT Sells Melbourne Asset 🔥

US:DGT:Dow Jones Industrial Average

Markets closed higher Wednesday despite volatility triggered by political drama in Washington. A White House official told lawmakers President Donald Trump was close to firing Federal Reserve Chair Jerome Powell. This initially sent stocks lower, but they rebounded after Trump denied immediate plans for Powell’s removal.

The S&P 500 rose 0.32% to 6,263.70, the Nasdaq Composite added 0.26% to 20,730.49—its ninth record close this year—while the Dow Jones Industrial Average gained 231.49 points (0.53%) to end at 44,254.78.

Trump previously criticized Powell over interest rate policy, calling for deep rate cuts. Powell said Fed actions were already on hold due to tariffs driving up U.S. inflation expectations.

Market experts warned firing Powell would rattle investors. Meanwhile, inflation concerns lingered as consumer prices rose in June, while wholesale prices stayed flat—but details suggested tariff-driven costs remain unaccounted for.

US:BAC:Bank of America

Bank earnings continued with mixed stock reactions. Bank of America and Morgan Stanley posted solid results but closed slightly lower. Goldman Sachs beat expectations, with shares climbing nearly 1%.

US:MSI:Motorola Solutions

UBS initiated coverage on Motorola Solutions with a buy rating and $490 price target, projecting nearly 20% upside. Analyst Andrew Spinola cited strong growth potential in the company’s core radio and video security businesses and a stronger profile following the Silvus Technologies acquisition. The stock gained 0.4% in premarket.

US:ASML:ASML

The VanEck Semiconductor ETF is set to break its seven-week win streak, down 0.6% so far. Leading the slump is ASML, whose shares dropped 9.5% Wednesday and 7% for the week despite Q2 earnings beats. Other declining chipmakers included Micron, Marvell, Monolithic Power, Teradyne, and NXP.

Nvidia dipped slightly but remained on track for its eighth straight weekly gain, while AMD climbed over 5% this week.

US:UAL:United Airlines

United Airlines shares slid nearly 2% after Q2 revenue of $15.24 billion missed forecasts of $15.35 billion, despite beating earnings expectations at $3.87 per share.

US:SRPT:Sarepta Therapeutics

Sarepta Therapeutics surged 32% following a strategic restructuring plan involving a 36% workforce cut, expected to save $400 million annually.

US:MCRI:Monarch Casino & Resort

Monarch Casino & Resort jumped 14% after reporting Q2 earnings of $1.44 per share and $136.9 million in revenue—up 21% and 7% year-over-year respectively.

US:AA:Alcoa

Alcoa gained nearly 2% after beating Q2 expectations with adjusted earnings of $0.39 per share on $3.02 billion in revenue.

US:AIR:AAR Corp.

AAR rose 3% following strong fiscal Q4 results: $1.16 per share earnings and $754.5 million in revenue—up 32% and 15% year-over-year.

US:SLG:SL Green Realty

SL Green Realty rose 1% after raising full-year funds from operations guidance to $5.65–$5.95 per share, up from $5.25–$5.55 previously.

SGX:BUOU.SI:Frasers Logistics & Commercial Trust (FLCT)

FLCT announced the sale of 357 Collins Street, Melbourne, for A$195.3 million (~US$164.1 million), slightly above its recent valuation. The sale is part of FLCT’s strategy to exit the weakened Melbourne CBD office market and increase exposure to logistics and industrial assets.

Post-sale, FLCT’s logistics portfolio weighting rises from 72.4% to 74.2%, occupancy improves to 95.2%, and lease expiry lengthens. If sale proceeds are used to reduce debt, leverage will fall from 36.1% to 34.6%, with an expanded debt headroom of S$2.06 billion.

CEO Anthea Lee said the move enhances financial flexibility and supports future investments in high-quality logistics properties.

🚀 Mega Moves: CLCT’s Strategic Sale, Hong Kong’s Tech Surge, EVs Face Bumps, and Seatrium’s Global Drive

SGX:AU8U.SI:CapitaLand China Trust (CLCT)

CLCT has called for an EGM on July 29 to seek approval for the divestment of CapitaMall Yuhuating in Changsha to CLCR at a floor price of RMB748 million. The proposed sale price is slightly above CLCT’s 2019 purchase price and reflects a strategic shift toward monetising mature retail assets. The sale is projected to result in a net gain of $22.3 million, though a book loss of $0.5 million is expected post-costs.

Yuhuating’s performance has been solid post-AEI, with 112% rental reversion and 13% growth in tenant sales in FY2024. Separately, CLD and CLI will also divest CapitaMall SKY+ into CLCR. Post-transaction, retail will form 75.1% of CLCT’s portfolio, down from 76.4%.

CLCT will subscribe to 5% of CLCR’s new units, with a 5-year lock-up. SAC Capital affirmed the transaction is on normal terms. Proceeds may be used for debt repayment and unit buybacks, which could boost DPU by 0.4%. The IPO pricing may push the sale above floor value, offering more upside.

HK:3033.HK:Hang Seng Tech Index

The Hang Seng Index extended gains to a fifth straight session, buoyed by AI enthusiasm and strong mainland investor inflows. Tech giants Alibaba and Tencent were top contributors to the rally. The Hang Seng Tech Index rose as much as 1.8% on Wednesday.

Optimism stems from China’s AI momentum, easing U.S.–China tensions, and chip sales plans by US:NVDA:Nvidia and US:AMD:Advanced Micro Devices. Goldman Sachs upgraded Hong Kong stocks to “market-weight”, while banks like US:MS:Morgan Stanley and US:BCS:Barclays raised China’s GDP growth forecasts closer to 5%.

HK:1211.HK:BYD

The EV market is cooling after U.S. legislation cut rebates, igniting tension between Tesla CEO Elon Musk and the Trump administration. Tesla, General Motors, Ford, and Hyundai are seeing a last-minute EV sales boost before incentives expire on Sept 30.

EV penetration is expected to hit 11% in the U.S. this year. However, sticker price, battery costs, and charging infrastructure continue to hinder adoption. BYD leads Chinese EV pricing wars with models under US$23,000. Meanwhile, Xiaomi and Geely compete aggressively.

Despite U.S. EV slowdown, China and Europe remain hotspots. Tesla, now pivoting toward robotaxis and software revenue, faces mounting battery replacement concerns among owners.

SGX:S51.SI:Seatrium

Seatrium, formed from the merger of Keppel O&M and Sembcorp Marine, is redefining global offshore engineering. Its CEO, Chris Ong, highlighted the firm’s delivery of P-series FPSOs to Petrobras and expansion into renewables. The global “One Seatrium Delivery Model” allows it to coordinate projects across continents.

Seatrium posted its first full-year profit since 2017 with $157 million in FY2024 and has a $21.3 billion net order book. The company is targeting an ROE of over 8% by 2028. Projects span FPSOs, offshore wind substations, and maritime decarbonisation.

SGX:U9E.SI:China Everbright Water (CEWL)

CEWL focuses on water environment management, with operations in China and overseas. FY2024 EBITDA fell 11% to HK$2.2 billion due to one-off factors and forex impact. The group is ramping up intelligent water systems and aims to keep gearing under 65% in 2025.

Asset-light expansion continues in Indonesia and Egypt as China’s domestic water market saturates. CEWL targets HK$1.7–2.0 billion in capex for 2025, with a stable dividend policy and over 7% yield. It also aligns with China’s Dual Carbon goals and pursues ESG-focused innovations like “dark factory” water plants and oxygen recycling.

SGX:D05.SI:DBS Group

JP Morgan expects DBS, UOB, and OCBC to report lower NIMs in 2QFY2025 due to falling SORA, HIBOR and SOFR rates. While credit costs remain under control, NIM compression may drive short-term stock price weakness.

Wealth management flows and strong SGD deposits support overall earnings. Citigroup sees DBS reporting in-line profits, OCBC slightly beating, and UOB missing due to higher rate sensitivity. DBS is forecasted to maintain its premium valuation due to better ROE and dividend yield.

SGX:O06.SI:Ossia International

The Goh brothers, controlling 86.06% of Ossia, reaffirmed their final privatisation offer at 16 cents per share. W Capital, acting as independent advisor, labelled the offer “not fair but reasonable”, citing a 41.59% premium to the last traded price. The offer closes on Aug 1.

💧 Deals, Surges & Solar Plays: Gamuda Bags 40-Year Water Contract, Tan Chong Roars, Pekat Powers Up

KL:5398.KL:Gamuda

Gamuda, via a joint venture with Perbadanan Kemajuan Negeri Perak (PKNPk), has been appointed to develop and operate water treatment and distribution infrastructure in Kerian, Northern Perak. The RM5 billion Northern Perak Water Supply Scheme (NPWSS) includes supplying treated water to the Kerian Integrated Green Industrial Park (KIGIP) and selling surplus to Penang. The project will run under a privatisation model for at least 40 years.

KL:0222.KL:Kawan Renergy

Kawan Renergy has secured a RM38.81 million contract from Gas Malaysia Energy Advance to build a gas turbine co-generation system at FGV IFFCO’s Port Klang facility. The 20-month project covers procurement, construction, and commissioning and will begin upon notice to proceed.

KL:4405.KL:Tan Chong Motor

Tan Chong Motor faced an unusual market activity (UMA) query after its shares soared 44% to an intraday high of 83.5 sen before closing at 79 sen, up 36%. Over 29.6 million shares were traded, making it one of the day’s top gainers. Year-to-date, the Nissan distributor’s stock is up over 92%.

KL:0233.KL:Pekat Group

Pekat Group plans to raise up to RM84.68 million via a private placement of 66.16 million shares (10% of share base) to fund solar photovoltaic projects, including those under the Corporate Green Power Programme. The placement, expected to conclude in 3Q2025, could boost Pekat’s market value beyond RM1 billion.

KL:5182.KL:Avaland

Avaland announced that Phase 1 of Avalon, a Balinese-inspired residential project in its Cybersouth township, is fully sold. The RM151 million GDV phase comprises 166 units, with prices starting from RM784,600. Avalon will feature a total of 343 homes across three types.

KL:6947.KL:CelcomDigi

CelcomDigi launched its flagship “Life” stores at The Gardens Mall and Sunway Pyramid. Each 3,500 sq ft store offers immersive tech experiences, with “store-within-a-store” concepts featuring partners like Samsung and Disney, redefining telco retail in Malaysia.

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