U.S. stock futures edged slightly lower Monday night, with the Dow down 0.1%, the S&P 500 falling 0.1%, and the Nasdaq 100 slipping 0.2%, following a rebound earlier in the trading day. During Monday’s session, markets moved higher as oil prices cooled, lifting the S&P 500 by about 1%, the Dow by 0.8%, and the Nasdaq by 1.2%. Oil prices declined—Brent crude hovering around $100 and WTI near $93.50—after the U.S. allowed Iranian oil tankers to pass through the Strait of Hormuz, easing fears of supply disruptions. Markets have been highly sensitive to the ongoing U.S.–Iran conflict, which had previously pushed oil prices above $100 and raised concerns about energy supply shocks.

Technology stocks led the rally, with Nvidia gaining roughly 1.7% after CEO Jensen Huang projected $1 trillion in potential orders for upcoming AI systems through 2027 and introduced new computing chips designed for space applications. Despite the rebound, trading volumes remained light, and analysts cautioned that economic risks are increasing, particularly as signs emerge of a weakening labor market. Investors are also closely watching several key events ahead, including earnings reports from Lululemon, DocuSign, and Oklo, as well as the Federal Reserve’s interest rate decision on Wednesday, where expectations for rate cuts have diminished amid persistent inflation concerns.

OUE Healthcare subsidiary opens ‘Singapore’s first private sleep laboratory’

Singapore investors can easily gain exposure to large companies through funds tracking the Straits Times Index (STI), but there is currently no low-cost exchange-traded fund (ETF) that provides diversified access to the next tier of mid-cap companies. To address this gap, the iEdge Singapore Next 50 Index, launched by the Singapore Exchange, tracks the 50 largest and most liquid companies listed on the mainboard that fall outside the STI. However, investors who want exposure to this segment must currently purchase the stocks individually, which increases transaction costs and can lead to risk concentration. The Next 50 includes companies such as ComfortDelGro, iFast Corporation, Sheng Siong, and Parkway Life REIT. Together, these companies represent about S$88 billion in market value and generate around S$165 million in average daily trading, indicating that the segment is both liquid and investable. Compared with the STI, the index also provides greater sector diversity, including exposure to industrials, consumer businesses, healthcare, technology, shipping, and real estate investment trusts. Creating an ETF based on the Next 50 would provide investors with a simple and diversified way to invest in Singapore’s mid-cap companies while potentially increasing liquidity, visibility, and institutional interest in these stocks. It would also bring Singapore in line with other developed markets where mid-cap ETFs are a common investment tool. With government initiatives such as the **Monetary Authority of Singapore’s Equity Market Development Programme already directing capital toward mid- and small-cap stocks, a Next 50 ETF could complement existing STI funds and give investors exposure to companies that may become the next generation of blue-chip leaders.

Today’s financial environment has drawn comparisons to the period before the 2008 global financial crisis, when surging oil prices coincided with growing stress in the financial system. Currently, oil prices are highly volatile following the U.S.–Israeli conflict with Iran, raising concerns about potential disruptions to global energy supplies. At the same time, the private credit sector is showing signs of strain as investors attempt to withdraw funds. Large firms such as Morgan Stanley, BlackRock, and Blue Owl Capital have reported redemption pressures in their private credit funds. These concerns are compounded by fears that artificial intelligence could weaken the business models of software companies backed by private credit, alongside an expected US$40 billion wave of redemptions by 2028.

Despite these risks, a crisis on the scale of 2008 appears unlikely in the short term. The private credit market is about US$2 trillion, which is relatively small compared with the overall global financial system. Banks are also far better capitalized than they were before the last financial crisis, and private credit funds often have mechanisms that limit investor withdrawals, known as gating, which can prevent sudden collapses. However, medium-term risks remain. Losses within private credit could gradually undermine investor confidence, while rising interest rates or prolonged energy shocks may increase default rates. Furthermore, the interconnected nature of banks and non-bank lenders means financial stress could still spread through the system. Another concern is that global crisis coordination may be weaker today, as declining international cooperation could make it harder for governments to respond effectively to a major financial shock. As a result, while a 2008-style crisis is unlikely in the near term, the combination of geopolitical tensions, rising oil prices, and pressure in private credit markets could still lead to gradual financial instability and periodic market tremors over time.

Hong Kong stocks closed higher, with the Hang Seng Index rising 368 points (+1.4%) to 25,834, the Hang Seng Tech Index climbing 2.7% to 5,111, and the HSCEI gaining 1.7% to 8,816, while market turnover reached HK$264.45 billion. Technology and major heavyweight stocks led the gains, including Xiaomi (+5.6%), Meituan (+3.1%), Tencent (+2%), Hong Kong Exchanges and Clearing (+1.2%), and Alibaba Group (+1.1%).

• IJM (3336): PNB rejected SUNWAY (5211)’s takeover offer for its 13.5% stake, citing low valuation, small cash component, and IJM’s long-term growth and dividend potential. IJM also said the bid comes at a low point in its earnings cycle.

• PHARMA (7081): Pharmaniaga will exit PN17 status effective March 17 after Bursa approved its upliftment.

• KEYFIELD (5321): Secured RM162 million in vessel charter contracts across Malaysia, Qatar, UAE, and Thailand, with RM84 million extension options.

• ANEKA (0226): Won RM95.65 million contracts for NPE extension piling works and a Seputeh residential project.

• ITMAX (5309): Its unit secured a 15-year smart parking system contract in Johor Bahru.

• DIALOG (7277): Divesting its 51% stake in a recycling JV to funds managed by Circulate Capital.

• SDS (0212): EPF ceased to be a substantial shareholder after reducing its stake below 5%.Thank you