OCBC Investment Research Private Limited
Date of Report: 25 September 2025

Global Markets Show Signs of Fatigue as AI-Driven Equity Rally Pauses: Comprehensive Analysis of Market Trends and Singapore’s Top Listed Companies

Executive Market Overview: AI Enthusiasm Wanes, Investors Await Critical Data

Global equity markets are beginning to show fatigue after a sustained AI-driven rally. Investors are pausing for breath as concerns over a slowing US labour market, persistent inflation, and looming macroeconomic catalysts create a more cautious atmosphere. Despite the S&P 500’s resilience against September’s traditionally weak performance, it closed down 0.37% as the materials sector dragged performance lower, while energy stocks outperformed on the back of crude oil’s seven-week high.
US Treasury yields rose, with the 10-year yield at approximately 4.15%. Optimism around Alibaba’s AI investment sparked a brief rally, but high valuations and a Treasury sell-off quickly erased gains. The Nasdaq Composite and Dow Jones Industrial Average both declined by 0.33% and 0.37%, respectively.
Key corporate moves included Micron Technology slipping despite a positive outlook, Intel seeking investment from Apple, and Oracle raising US$18 billion for AI expansion. Additional uncertainty stems from the Trump administration’s investigations into robotics and industrial machinery imports, as well as the specter of a US government shutdown before the 30 September deadline.
In Europe, the Stoxx 600 dipped 0.19%, as consumer products and construction stocks lagged. Automaker shares stabilized following US tariff adjustments, while defense stocks soared 4.3% on comments from President Donald Trump regarding NATO and Ukraine.
In Asia, markets are expected to follow the US and dip as AI enthusiasm fades. The MSCI Asia Pacific Index managed a 0.2% gain, thanks to Alibaba, although banking stocks were a drag.

Singapore Market Snapshot: Flat Performance Amid Global Uncertainty

The Straits Times Index (STI) closed at 4,290.4, down 0.3%. The financials and REITs sectors edged lower, while real estate saw a marginal gain. Trading volume and turnover saw slight increases, but overall sentiment was subdued. The ratio of gainers to losers was nearly balanced at 286 to 273.

Key Global Indices and Commodities Performance

Key commodities saw WTI Crude and Brent both up 2.5%, with gold and silver posting minor losses.

Macro Catalysts to Watch: Inflation Data, Jobless Claims, and Shutdown Risks

Investors are now poised for critical US inflation data due Friday, which could shape perceptions of stagflation and influence sentiment heading into October. Tonight’s US jobless claims and developments regarding a potential government shutdown before the month’s end add further layers of uncertainty.

Latest Equity Recommendations: Key Picks and Sector Snapshots

OCBC Investment Research has published a range of new reports, highlighting companies across Singapore, Hong Kong, and China. The following table summarizes the most recent recommendations:

Singapore’s Leading Stocks: Detailed Market Cap and Valuation Analysis

OCBC ranks STI stocks by market capitalization, with comprehensive financial metrics and recommendations. Below is a summary of the top 30 companies:

Company Highlights and Analyst Recommendations

• DBS Group Holdings Ltd: The largest Singapore-listed company at US\$110.9bn market cap. Dividend yield stands at 5.2% (historical), 6.0% (forward). P/E ratio is 13x historical, 13x F1, 11x F2. Analyst consensus: 7 Buy, 1 Hold, 19 Sell.
• OCBC Ltd: Market cap US\$57.1bn, dividend yield 5.0%/6.0%, P/E 10x/10x/4x. 14 Buy, 1 Hold, 19 Sell.
• Singapore Telecommunications (Singtel): Market cap US\$54.6bn, dividend yield 4.4% (hist/F1), P/E 18x/24x/21x, 17 Buy, 0 Hold, 1 Sell.
• United Overseas Bank (UOB): Market cap US\$44.3bn, dividend yield 5.1%/6.0%, P/E 10x/10x/7x, 9 Buy, 2 Hold, 18 Sell.
• Singapore Technologies Engineering: Market cap US\$20.7bn, 2.0% dividend yield, P/E 35x (hist), 30x (F1), 27x (F2), 6 Buy, 9 Hold, 2 Sell.
• Venture Corp Ltd: Market cap US\$3.2bn, dividend yield 5.3%/5.4%, P/E 17x/18x/17x, 5 Buy, 4 Hold, 1 Sell.

Other notable names include Hongkong Land, Keppel Ltd, CapitaLand Investment, Ascendas REIT, Yangzijiang Shipbuilding, Sembcorp Industries, Genting Singapore, Seatrium Ltd, and Mapletree Pan Asia Commercial Trust, each with their latest market caps, valuation multiples, and analyst recommendations detailed in the table above.

Conclusion: Navigating Uncertainty with Data-Driven Insights

As global equity markets approach a critical juncture, investors are urged to monitor upcoming macroeconomic data and policy risks closely. Singapore’s blue-chip stocks remain fundamentally resilient with attractive dividends and stable valuations, though sector rotation and global headwinds persist. OCBC Investment Research continues to provide actionable insights, helping investors position portfolios for the next phase of market developments.