OCBC Investment Research
Date of Report: 25 August 2025
Global Markets Surge as Fed Signals Rate Cuts; Singapore Equities and Corporate Insights
Market Pulse: U.S. Equities Rebound, Fed Rate Cuts Loom
Global financial markets rallied on Friday after Federal Reserve Chair Jerome Powell hinted at possible imminent rate cuts. Powell’s remarks, focusing on risks in the U.S. labor market rather than waiting for perfect inflation, reinvigorated investor sentiment and led to sharp gains across major indices.
- Dow Jones: +846.24 points (+1.89%), new all-time high
- S&P 500: +1.52%
- Nasdaq Composite: +1.88%
Powell’s Jackson Hole speech balanced concerns over a softening labor market and inflation risks, especially as President Trump’s tariffs ripple through the U.S. economy. Abundant liquidity and anticipated rate cuts are expected to sustain both stock and bond markets. Investors now focus on the speed and magnitude of rate cuts and upcoming data, including Nvidia Corp’s earnings. Nvidia, with an 8% S&P 500 weight and a central role in AI, remains a bellwether for market sentiment.
European Stocks Climb on Low Rates and Fiscal Support
- Stoxx Europe 600: +0.8% intraday, +11% YTD
- FTSE 100: at record levels
- Germany’s DAX: near July peak
Low interest rates and strong government spending, especially in Germany, are driving European equities. Companies broadly outperformed in Q2 earnings, supporting further optimism in the region.
Asian Equities: Mixed Moves, China Leads Weekly Gains
- MSCI Asia Pacific Index: +0.1%
- Onshore Chinese Stocks: strongest weekly gain since November
- Key movers: Chinese and South Korean stocks led gains; Taiwan and India saw declines
Chinese equities surged on chipmaker momentum and supportive policy, but ongoing concerns over trade tariffs and the property crisis remain. Singapore’s Straits Times Index closed higher by 0.5%, with financials and real estate also posting gains.
Singapore Market Statistics
| Index |
Close |
Net Change |
% Change |
| Straits Times Index |
4,253.0 |
22.1 |
0.5% |
| FTSE ST Financials |
1,692.2 |
8.7 |
0.5% |
| FTSE ST REITs |
674.4 |
0.5 |
0.1% |
| FTSE ST Real Estate |
683.2 |
1.8 |
0.3% |
Volume: 1,371.7m (-18.1%)
Turnover: 1,268.7m SGD (-14.1%)
52-week range: 3,372.4 – 4,282.8
Gainers/Losers: 332 / 175
Global Indices and Forex Snapshot
| Index |
Close |
Change |
% Change |
| S&P 500 |
6,466.9 |
96.7 |
1.5% |
| DJI |
45,631.7 |
846.2 |
1.9% |
| Nasdaq Comp |
21,496.5 |
396.2 |
1.9% |
| FX/Commodity |
Close |
% Change |
| USDSGD |
1.2814 |
0.6% |
| USDJPY |
146.94 |
1.0% |
| WTI Crude (USD/bbl.) |
63.66 |
0.2% |
| Gold (USD/oz.) |
3,371.9 |
1.0% |
Singapore Post (SPOST SP): Navigating a Transition Period
Rating: HOLD
Fair Value Estimate: SGD 0.495
Key Takeaways:
- 1QFY26 revenue fell 23.8% YoY to SGD 162.3m, with operating profit down 60% YoY to SGD 3.4m
- Operating margin declined to 2.1% from 3.9% in 1QFY25
- Occupancy in property business slipped to 97.8% (from 98.2%)
- Streamlined structure focuses on asset utilization and operational efficiency
- Search for new CEO underway; no timeline for new strategy
The sale-and-leaseback of HDB shophouses was clarified as a one-off transaction, prompting the removal of the post office network value from SOTP valuation. SPOST is unlikely to pursue large divestments in the near term, making earnings potential a key valuation factor. The ESG rating was maintained, with SPOST leading in corporate governance and labor management, alongside robust carbon mitigation initiatives such as fleet electrification.
Latest Research Ideas: Comprehensive Company Snapshots
Below is a summary of the latest research reports, including ratings and fair value estimates for key stocks across Singapore, Hong Kong, and China.
| Date |
Market |
Company |
Report Title |
Ticker |
Rating |
Fair Value |
| 22 Aug 2025 |
SG |
Singapore Post |
Transition period |
SPOST SP |
HOLD |
SGD 0.495 |
| 21 Aug 2025 |
HK/CH |
CITIC Securities |
Beneficiary of robust capital market activities |
6030 HK / 600030 CN |
HOLD / BUY |
HKD 31.15 / CNY 42.40 |
| 21 Aug 2025 |
SG |
SATS Ltd |
Soldier on |
SATS SP |
BUY |
SGD 3.73 |
| 20 Aug 2025 |
HK/CH |
Jiangxi Copper Co Ltd |
Smelting could benefit from “anti-involution” |
358 HK / 600362 CH |
BUY |
HKD 25.90 / CNY 31.00 |
STI Stocks by Market Capitalisation: Key Financial Metrics and Recommendations
Below is a comprehensive table of major STI stocks, sorted by market capitalization. The table highlights share price, market cap, beta, dividend yield, P/E ratios (historical and forecasted), and analyst recommendations.
| Code |
Company |
Price |
Market Cap (US\$m) |
Beta |
Dividend Yield (Hist/F1) |
P/E (Hist/F1/F2) |
Buy |
Hold |
Sell |
Total |
| DBS SP |
DBS Group Holdings Ltd |
SGD 50.81 |
112,371 |
1.2 |
5.9 / 5.9 |
13 / 13 / 13 |
10 |
9 |
0 |
19 |
| OCBC SP |
Oversea-Chinese Banking Corp Ltd |
SGD 16.91 |
59,218 |
1.0 |
4.8 / 5.8 |
10 / 11 / 10 |
4 |
14 |
1 |
19 |
| ST SP |
Singapore Telecommunications Ltd |
SGD 4.20 |
54,055 |
0.8 |
4.5 / 4.4 |
17 / 25 / 21 |
15 |
2 |
1 |
18 |
| UOB SP |
United Overseas Bank Ltd |
SGD 35.40 |
45,796 |
1.1 |
5.0 / 5.9 |
10 / 10 / 10 |
6 |
11 |
1 |
18 |
Conclusion: Market Outlook and Investment Considerations
The global investment landscape is shifting, with central banks, especially the U.S. Fed, poised to support markets through rate cuts. Singapore equities have responded positively, and major listed companies reveal a breadth of opportunities and challenges, from financials to REITs and industrials. Investors should monitor both macroeconomic signals and company-specific developments, particularly leadership transitions and strategic updates.
As always, it is vital to assess individual risk profiles and investment objectives in light of evolving market conditions and corporate actions.
