Wednesday, August 13th, 2025

Global Markets Rally as Tech and Bank Stocks Shine; UOB Share Buyback and Dividend Yield Offer Support – August 2025 Market Update

Broker Name: OCBC Investment Research Private Limited
Date of Report: 11 August 2025

Global Markets Surge on Tech Rally and Strategic Moves: In-depth Analysis of Leading Singapore Stocks and Key Sector Developments

Global Market Overview: Major Indices Climb Amid Strategic Industry Shifts

Markets wrapped up the week on a positive note, with US equities rallying strongly, powered by a resurgence in big tech. The S&P 500 rose 0.78% while the Nasdaq Composite gained 0.98%. The Dow Jones Industrial Average added 207 points (+0.47%). Utilities and real estate were the only sectors in the S&P 500 to retreat. Nvidia and Advanced Micro Devices (AMD) agreed to an unprecedented revenue-sharing arrangement with the US government, providing 15% of revenues from certain chips sold in China in exchange for export licenses for the Nvidia H20 and AMD MI308 chips.

Gold markets found relief as the White House clarified gold bar imports should not face tariffs, following confusion from a US government agency’s formal ruling.

Mortgage giants Fannie Mae and Freddie Mac saw strong gains following reports that the Trump administration may sell shares in an offering as early as this year. Overall market sentiment was buoyed by robust earnings, ongoing buybacks, retail inflows, and signs of geopolitical stabilization, though higher tariffs remain a headwind for US equities.

Europe Market Highlights

  • The Stoxx Europe 600 Index closed up 0.19%, extending weekly gains to 2.1%.
  • Basic resources and bank stocks led Friday’s advance, while insurance and defense shares lagged.
  • Tech investors found reassurance as the EU confirmed a 15% tariff ceiling on chip exports to the US.

Asia Market Performance

  • MSCI Asia Pacific Index advanced 0.1%, marking its third weekly gain in four, led by strong performance in Japan.
  • Japan’s rally offset declines in Hong Kong, South Korea, India, and Singapore.
  • Investors remain focused on upcoming Chinese retail sales and industrial production data, as demand signals remain fragile.
  • The 12 August deadline for US duties on Chinese imports is a key watchpoint.

Singapore Market Statistics and Major World Indices

Index Close Change % Change
Straits Times Index 4,239.8 -18.4 -0.4%
FTSE ST Financials 1,683.7 4.7 0.3%
FTSE ST REITs 673.5 -1.1 -0.2%
FTSE ST Real Estate 679.0 -1.9 -0.3%
S&P 500 6,389.5 49.4 0.8%
DJI 44,175.6 207.0 0.5%
Nasdaq Comp 21,450.0 207.3 1.0%
FTSE 100 9,095.7 -5.0 -0.1%
STOXX Europe 600 547.1 1.0 0.2%
Nikkei 225 41,820.5 761.3 1.9%
Hang Seng Index 24,858.8 -222.8 -0.9%
SHSE Comp Index 3,635.1 -4.5 -0.1%
SZSE Comp Index 2,220.1 -4.5 -0.2%

Singapore Equities: Research Ideas and Key Stock Analysis

United Overseas Bank Ltd (UOB SP): Share Buyback Supports Stock Price

  • 2Q25 results missed market expectations. Net profit was SGD1.34b, down from SGD1.49b in 1Q25.
  • Net interest income fell 3% QoQ and YoY to SGD2.34b. NIM dropped from 2.0% in 1Q25 to 1.91% in 2Q25.
  • Non-interest income rose 5% YoY but fell 10% QoQ to SGD1.13b. Most fee-based incomes declined QoQ.
  • NPL ratio was flat at 1.6%. Allowances were SGD279m, bringing 1H25 allowances to SGD569m.
  • Interim dividend of SGD0.85 declared, down from SGD0.88 in 1H24. Stock trades ex-dividend on 15 Aug 2025, payment on 28 Aug 2025. The second half of the previous SGD0.50 special dividend will also be paid on 28 Aug.
  • SGD2b share buyback program ongoing, with SGD255m shares bought back (13% completed).

Management Guidance: UOB expects full-year NIM of 1.85%–1.9%, low single-digit loan growth, and high single-digit fee income growth. Operating expenses are expected to be flat, with net credit costs projected at 25–30bps. The bank is focused on its ASEAN franchise, infrastructure, digital, and green projects.

Valuation: Dividend yield remains attractive at 5.0% with rates likely to trend lower. UOB’s diversified earnings, healthy balance sheet, and prudent management position it well for medium-term uncertainties. Fair value estimate lowered to SGD38.20.

ESG Performance

  • ESG rating maintained for a second year, in line with DBS and above the global industry median.
  • Strong consumer protection, transparent lending, and corporate governance with a majority independent board.
  • Majority independent risk committee for robust oversight.
  • Social and Governance pillars comprise 54% and 33% of overall ESG score; Environment pillar contributes 13%.
  • Environment score of 6.9, above industry average of 5.4, due to robust risk escalation mechanisms.
  • Sustainability financing target of SGD30b by 2025; achieved carbon neutrality in 2021 (scope 1, 2, non-financed scope 3).

Other Noteworthy Singapore Equities and Sector Reports

Report Date Stock/Sector Title Ticker Rating Fair Value
8 Aug 2025 UOB Ltd Share buyback will provide price support UOB SP HOLD SGD 38.20
7 Aug 2025 DBS Group Holdings Ltd Better 2Q25; raising FV to SGD54 DBS SP BUY SGD 54.00
6 Aug 2025 Parkway Life REIT All the right moves PREIT SP BUY SGD 4.85
5 Aug 2025 CapitaLand Ascendas REIT Awaiting acquisitions completion CLAR SP BUY SGD 3.32
5 Aug 2025 Nanofilm Technologies International Ltd Buoyed by a rising tide NANO SP HOLD SGD 0.715
5 Aug 2025 CapitaLand Integrated Commercial Trust In a sweet spot for growth CICT SP BUY SGD 2.52
5 Aug 2025 China Citic Bank Lacklustre core earnings outlook 998 HK / 601998 CH HOLD / BUY HKD 7.80 / CNY 9.55
4 Aug 2025 Agricultural Bank of China Expecting earnings resilience 1288 HK / 601288 CH BUY / HOLD HKD 5.85 / CNY 6.35
1 Aug 2025 CapitaLand Ascott Trust Positioning for uncertainty: Next leg of portfolio reconstitution CLAS SP BUY SGD 1.02
1 Aug 2025 Singapore Post Focusing on break-up value SPOST SP BUY SGD 0.590
1 Aug 2025 Sheng Siong Group Acceleration in new stores opening SSG SP BUY SGD 2.37
1 Aug 2025 Frasers Logistics & Commercial Trust Strong rental reversions but higher vacancies FLT SP BUY SGD 1.06
1 Aug 2025 Keppel Ltd Accelerating asset monetisation KEP SP BUY SGD 10.20
1 Aug 2025 Starhill Global REIT Stable performance, stable outlook SGREIT SP HOLD SGD 0.510
31 Jul 2025 Seatrium Limited Clear the decks STM SP BUY SGD 2.76
31 Jul 2025 CapitaLand India Trust Power-packed 1H25 CLINT SP BUY SGD 1.44
31 Jul 2025 Mapletree Pan Asia Commercial Trust VivoCity continues to shine MPACT SP BUY SGD 1.45
30 Jul 2025 Keppel Infrastructure Trust Stable overall results pending foray into Digital Infrastructure KIT SP BUY SGD 0.53
30 Jul 2025 Keppel REIT In-line set of results KREIT SP HOLD SGD 0.95

Singapore STI Stocks Sorted by Market Capitalisation

Code Company Price (SGD) Market Cap (US\$m) Beta Div Yield (%) P/E Ratio (x) Recommendation
DBS SP DBS Group Holdings Ltd 50.74 111,998 1.2 5.9 13 BUY
OCBC SP Oversea-Chinese Banking Corp Ltd 16.79 58,700 1.0 4.9 10 HOLD
ST SP Singapore Telecommunications Ltd 3.98 51,124 0.8 4.7 16 BUY
UOB SP United Overseas Bank Ltd 35.70 46,105 1.1 5.0 10 HOLD
STE SP Singapore Technologies Engineering Ltd 8.69 21,101 0.8 2.0 39 BUY
JM SP Jardine Matheson Holdings Ltd 56.17 16,574 0.8 4.0 170 BUY
SIA SP Singapore Airlines Ltd 6.53 15,397 1.0 6.1 8 BUY
WIL SP Wilmar International Ltd 2.96 14,375 0.7 5.4 12 BUY
HKL SP Hongkong Land Holdings Ltd 6.14 13,387 0.9 3.7 21 BUY
SGX SP Singapore Exchange Ltd 16.02 13,320 0.8 2.3 26 BUY
CICT SP CapitaLand Integrated Commercial Trust 2.26 12,864 0.7 4.8 17 BUY
KEP SP Keppel Ltd 8.58 12,109 1.0 4.0 17 BUY
CLI SP CapitaLand Investment Ltd/Singapore 2.77 10,747 1.0 4.3 29 BUY
CLAR SP CapitaLand Ascendas REIT 2.72 9,746 0.8 5.6 17 BUY
SCI SP Sembcorp Industries Ltd 6.72 9,301 0.8 3.9 12 BUY

Additional stocks covered include Thai Beverage, Yangzijiang Shipbuilding, Genting Singapore, Seatrium Ltd, Mapletree Pan Asia Commercial Trust, UOL Group, Mapletree Logistics Trust, Mapletree Industrial Trust, City Developments Ltd, Keppel DC REIT, SATS Ltd, Frasers Centrepoint Trust, Venture Corp, and Frasers Logistics & Commercial Trust, each with associated market capitalisation, dividend yield, P/E ratio, and recommendations.

FX & Commodities Snapshot

Instrument Close % Change
USDSGD 1.2854 -0.2%
USDJPY 147.74 -0.4%
USDCNY 7.180 0.0%
USDHKD 7.850 0.0%
WTI Crude (USD/bbl.) 63.88 0.0%
Brent (USD/bbl.) 66.59 0.2%
Gold (USD/oz.) 3,397.8 0.0%
Silver (USD/oz.) 38.34 0.2%

Conclusion: Market Outlook and Investment Opportunities

The latest research indicates stable market conditions supported by corporate earnings, buybacks, and cautious optimism amid ongoing geopolitical and trade uncertainties. UOB, DBS, CapitaLand, Keppel, and other leading Singapore stocks present diverse opportunities for investors, with robust dividend yields, disciplined management, and strong ESG performance. Investors are advised to monitor tariff developments, sectoral shifts, and emerging data to position portfolios optimally for the months ahead.

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