OCBC Investment Research
19 August 2025
Global Markets Mixed as Investors Eye Geopolitical Tensions and Key Earnings: In-Depth Equity Analysis and Singapore Market Insights

Market Overview: Global Indices React to Geopolitical Uncertainty

The global equity landscape delivered a mixed performance as market participants braced for significant geopolitical developments and awaited major retail-sector earnings alongside an important Federal Reserve event later in the week. Trading volumes were notably light, attributed to both the lack of headline earnings or economic data and the late-summer lull, with many traders on break. Investor sentiment was also tempered by the aftermath of a White House summit focused on the ongoing war in Ukraine.
US Markets:
The S&P 500 edged down by a marginal 0.01%. Intel Corp was among the day’s weakest performers, dropping 3.7% amid rumors of possible government intervention. Conversely, Dayforce Inc soared 26% on speculation of a Thoma Bravo buyout. The Nasdaq 100 closed flat, with only Nvidia and Tesla rising among the Magnificent Seven. The Dow Jones Industrial Average slipped 0.1%, giving back some gains after approaching record highs the prior Friday.
Treasury yields saw modest increases: the 2-year at 3.77% and the 10-year at 4.34%.
Europe:
The Stoxx Europe 600 Index rose 0.08%, led by health care and telecoms, while construction and mining lagged. France’s CAC 40 fell 0.5%, with financials dragging it lower. Novo Nordisk shares climbed after cutting Ozempic prices and receiving FDA approval for Wegovy to treat liver disease. European bonds remain under pressure as the continent is expected to finance Ukrainian purchases of US arms.
Analysts predict any equity pullback will be short-lived, anticipating continued economic improvement.
Asia:
Asian equities advanced, led by India (on tax cut plans) and China (on optimism over easing US trade tensions). The MSCI Asia Pacific Index gained 0.1%. Shanghai-listed stocks hit a decade high as local investors injected fresh capital. Taiwan and Japan also saw gains, while South Korea fell due to a chipmaker selloff.
President Trump announced a pause in tariff hikes on Chinese goods tied to Russia oil purchases, following talks with Vladimir Putin. Chinese equities have underperformed Hong Kong due to ongoing economic and trade concerns.

Singapore Market Pulse: Performance and Sector Breakdown

Singapore’s Straits Times Index (STI) closed at 4,187.4, down 1% (43.1 points), with the FTSE ST Financials, REITs, and Real Estate indices also posting declines. Market turnover and volume both fell, with 265 gainers and 271 losers. The 52-week STI range stretched from 3,340.4 to 4,282.8.

Latest Equity Research Highlights: Key Company Reports and Ratings

The following table summarizes the latest recommendations and fair values for major Singapore-listed companies and sectors:

Singapore Blue-Chip Stocks: Comprehensive Market Capitalization and Valuation Table

Below is a detailed snapshot of Singapore’s largest listed companies, sorted by market capitalization (as of 18 August 2025), including price, dividend yields, P/E ratios, and consensus recommendations. This table is essential for investors seeking valuation, yield, and analyst sentiment at a glance.

Company Insights and Analyst Recommendations: Key Takeaways

• DBS Group Holdings Ltd: Remains the largest Singapore-listed firm by market cap, with a strong dividend yield (6.0-6.1%) and consistent analyst support (9 buys, 0 sells out of 19 ratings).
• Oversea-Chinese Banking Corp Ltd (OCBC): Healthy yields and stable earnings, with a near-unanimous positive analyst consensus.
• Singapore Telecommunications Ltd (Singtel): Offers predictable yield, though P/E ratios are elevated, reflecting ongoing growth and restructuring efforts.
• United Overseas Bank Ltd (UOB): Strong dividend profile, favorable analyst sentiment, and robust capital position.
• ST Engineering Ltd: Holds a defensive profile with a strong order book and moderate yield, though high P/E reflects growth expectations.
• Wilmar International Ltd: Noted for a mixed outlook in the second half but with China providing support; maintains a buy rating.
• ComfortDelGro Corporation, Nanofilm Technologies, UOL Group, CapitaLand Investment, Sembcorp Industries, Genting Singapore, and others: Each company’s latest research report is summarized in the earlier table, offering a clear analyst stance and fair value target for investors.

Sector and Regional Developments to Watch

European Pharma: Novo Nordisk’s price cuts and regulatory wins are driving optimism in the healthcare sector.
Asia: India’s tax reforms and China’s easing US trade tensions are fueling regional bullishness, while chipmaker weakness weighs on Korean equities.
Singapore: Defensive sectors like REITs and telcos showed resilience. Financials and industrials remain well-supported by analyst consensus.

FX and Commodities Snapshot

Key currency and commodity moves as of report date:

Conclusion: Navigating a Cautious but Opportunity-Rich Market

Investors are treading carefully amid persistent geopolitical risks and policy uncertainties, but underlying market fundamentals—especially for selected blue-chip names and high-quality REITs—remain robust. With healthy dividend yields, improving economic data, and strong analyst support across Singapore’s leading counters, the outlook remains constructive for diversified, income-focused portfolios.
Stay tuned for further updates as the global and regional landscape evolves, keeping a watchful eye on key earnings, policy signals, and sector-specific catalysts.