Stocks declined across the board, with the Dow Jones Industrial Average falling 443.96 points (0.96%) to 45,577.47, the S&P 500 dropping 1.51% to 6,506.48, and the Nasdaq Composite sliding 2.01% to 21,647.61. The small-cap Russell 2000 fell more than 2% and officially entered correction territory, down over 10% from its recent high.
Meanwhile, oil prices surged sharply, with Brent crude climbing above $113 per barrel (up roughly 9% for the week) and WTI crude rising past $98, fueling fears of global supply shortages and adding to inflationary pressures.
Treasury yields moved higher as expectations for Federal Reserve policy shifted, with markets increasingly concerned that rate cuts could be delayed or canceled, and some even pricing in potential rate hikes. However, Morgan Stanley pushed back on this view, calling such fears overblown and maintaining its forecast for rate cuts later in 2026, likely in September and December.
The sell-off was broad-based across sectors, with utilities hit the hardest (down more than 3.5%), followed by technology and real estate, both falling over 2%.
Major tech leaders also declined, with Nvidia and Tesla each losing around 3%. Industries sensitive to oil prices, particularly consumer goods companies reliant on petrochemical inputs, faced added pressure, while certain segments such as nicotine and alcohol companies were viewed as relatively more insulated from rising energy costs.
InnoTek is a Singapore-listed precision manufacturer that produces components for electronics, automotive, and increasingly AI hardware. It recently became an approved supplier to Nvidia, providing parts for its AI server racks, with its components even featured at Nvidia’s 2025 Viking rack product launch. Notably, the approval process took only about six months—far shorter than the typical two years—helping create a “halo effect” that has attracted additional AI hardware clients.
While it sees strong near-term demand from AI, management remains cautious about long-term monetisation and stresses the importance of diversifying beyond AI. Looking ahead, the company sees two main growth drivers: AI hardware, supported by its Nvidia relationship, and automotive, which is stabilizing after the EV price war. Its focus remains on scaling the business, diversifying revenue streams, and developing future leadership. Despite current headwinds—including EV turbulence, tariffs, and margin pressure—management believes InnoTek is better positioned than its financial results suggest, particularly due to its growing role in the AI supply chain.
Lincotrade is seeing strong growth opportunities, supported by a robust pipeline that includes bids for data centre projects in Singapore and Malaysia as well as hotel developments. These data centre contracts are particularly attractive due to their higher margins, driven by technical complexity, while government projects also provide steady demand, reliable payments, and improving pricing power.
The company has achieved a record order book of $117.2 million as of December 2025 and has the capacity to handle up to around $150 million annually. Financially, Lincotrade delivered strong results in 1HFY2026, with revenue rising 58.2% year-on-year to $53.3 million and net profit surging 438.5% to $3.9 million, alongside an interim dividend of 0.88 cents, representing a payout ratio of about 41%.
The company also raised $2.2 million through a share placement at a premium, reflecting investor confidence. Looking ahead, Lincotrade is focused on expanding its presence in commercial projects, especially data centres and offices, while also capturing opportunities in hotel renovations and new developments. Overall, the company is scaling rapidly with strong earnings growth, diversified capabilities, and increasing exposure to high-margin sectors, positioning it well for continued expansion.
Manulife US REIT (MUST) has been struggling due to overleveraging from aggressive acquisitions made during a low interest rate environment, leading to a collapse in its unit price from 83 US cents at IPO to around 6 US cents. The expansion, which grew its portfolio from 3 properties to 12 by 2021, backfired as rising interest rates and a weak US office market put pressure on the REIT.
Financial distress followed, with MUST breaching loan covenants and suspending distributions since 1H 2023, while being forced into distress asset sales to meet lender requirements. In contrast, peers such as Prime US REIT and Keppel Pacific Oak US REIT have resumed distributions, making MUST the only one still withholding payouts.
Valuation and asset sale challenges have further complicated its recovery, with portfolio value declining to about US$913.8 million and the REIT still falling short of its divestment targets despite multiple disposals. Investor concerns are heightened by frequent downward asset revaluations, reinforcing the perception of MUST as a “stressed seller” that may struggle to secure optimal sale prices. Although a potential sale of the Figueroa property could help meet targets, uncertainty remains.
Strategically, MUST is shifting beyond office assets into industrial, residential, and retail properties, but this requires continued asset sales and reinvestment while managing a high leverage ratio of around 58%, above regulatory guidelines. While the theoretical path to recovery—selling assets, reducing debt, and restoring distributions—is clear, execution remains challenging, and a significant gap persists between its current state and investor expectations.
Poh Kong Holdings Bhd reported a strong 60.6% year-on-year rise in 2QFY2026 net profit to RM47.54 million, driven by higher demand for gold investment products and rising gold prices, with revenue up 15% to RM528.84 million, though no dividend was declared. In contrast, Cypark Resources Bhd posted a third consecutive quarterly loss of RM17 million due to the absence of prior-year one-off gains, despite revenue growing nearly 9%. Meanwhile, Maybank exited its 19.16% stake in Alam Maritim Resources after a debt settlement-related holding.
Maybulk and Leader Steel planning special dividends and debt reduction. Kenanga Investment Bank significantly increased its stake in digital asset exchange KDX to 81.7%. Perdana Petroleum proposed a RM600 million capital reduction to offset accumulated losses, while Rivertree plans to diversify into managing labour quarters to stabilise earnings. Sorento Capital is seeking a transfer from the ACE Market to the Main Market, and Steel Hawk secured a three-year maintenance contract at the Pengerang Integrated Complex.
Hong Kong stocks ended lower, with the Hang Seng Index falling 0.9% to 25,277, dragged by sharp declines in major tech names such as Alibaba Group and Xiaomi, which fell after disappointing earnings and pricing concerns, respectively. Broader tech weakness also weighed on sentiment, while heavy short selling was seen across several large-cap stocks.
In contrast, some sectors showed strength, particularly green energy and battery-related stocks, which rallied on speculation of increased demand for photovoltaic and energy storage products, with companies like CATL and Ganfeng Lithium posting strong gains. The market was mixed overall, with declines in tech and consumer names offset by gains in clean energy and select industrials, while trading activity remained elevated. Overall, sentiment was shaped by earnings results, sector rotation, and policy-driven themes such as green energy and AI investment.
