Dow Jones Industrial Average gained 235.60

The U.S. stock market ended mixed on Friday as investors weighed escalating Middle East tensions and weakness in semiconductor stocks. The S&P 500 edged up 0.05% to 7,411.98, the Dow Jones Industrial Average gained 235.60 points (+0.46%) to 51,947.25, helped by a 3.5% rise in Apple, while the Nasdaq Composite fell 0.64% to 24,975.82. For the week, the S&P 500 lost 0.6%, the Nasdaq fell 2.1%, and the Dow slipped 0.4%, marking the Dow’s third consecutive weekly decline.

Investor sentiment remained cautious after reports that President Donald Trump is considering a larger military attack on Iran. Hopes of potential peace talks between the U.S. and Iran, reportedly being explored through Pakistan with China’s involvement, briefly lifted markets before concerns over possible military escalation resurfaced. Oil prices retreated from weekly highs, with Brent crude falling nearly 4% to US$96.78 per barrel after exceeding US$100 earlier in the week, while WTI crude declined 3% to US$89.31 per barrel.

President Donald Trump’s latest tariff policy is facing fresh legal uncertainty after the administration imposed Section 301 tariffs on imports from more than 80 countries, covering 99.4% of U.S. trade, on the grounds of combating forced labour. Critics argue the tariffs are an attempt to recreate the global tariff regime previously struck down by the U.S. Supreme Court under the International Emergency Economic Powers Act (IEEPA). A lawsuit has already been filed by two small businesses, with legal experts divided on whether the Section 301 tariffs can survive court scrutiny. While some believe the tariffs exceed the intended scope of Section 301, others say the law gives the administration broad discretion. Businesses are being advised to plan based on the current tariffs rather than expect a quick reversal.

Chipmakers were among the biggest drags despite generally solid earnings. Intel dropped nearly 8%, Micron fell 7%, AMD declined 3.3%, Broadcom lost 2.7%, and the VanEck Semiconductor ETF (SMH) fell 3% as investors rotated out of semiconductor stocks.

Second-quarter earnings season continued to outperform expectations. With 27% of S&P 500 companies having reported, 86% have beaten earnings estimates and 80% have exceeded revenue forecasts. FactSet now expects 37.9% year-on-year earnings growth for the quarter, up sharply from 23.2% projected at the end of June, potentially making it the strongest earnings growth since Q3 2021. Nine of the index’s eleven sectors have seen earnings estimates revised higher, while 11 companies have issued positive third-quarter guidance compared with nine negative outlooks.

Meanwhile, investor Michael Burry revealed he remains bearish on technology stocks, maintaining short positions in Tesla, Nvidia, the Invesco QQQ ETF, and Palantir. Tesla shares have fallen about 26% in July, including a 15% plunge after earnings and another 3% decline on Friday, leaving the stock around US$308. Burry said his original Tesla short was initiated at US$416.22.

Sector performance reflected the weakness in mega-cap technology stocks. Communication Services and Consumer Discretionary each fell about 6% for the week. Tesla suffered its worst weekly decline since March 2020, while Alphabet dropped 7.1% after earnings despite reporting 82% cloud revenue growth, as investors focused on its increased 2025 capital expenditure guidance of up to US$205 billion. Geopolitical developments and energy prices are expected to remain key factors influencing inflation expectations, bond yields and the Federal Reserve’s interest rate outlook.

Separately, Nvidia announced a strategic partnership with SK Hynix that could be worth up to US$500 billion over several years, securing supplies of high-bandwidth memory (HBM) for its next-generation AI chips and supporting large-scale AI data centres expected to come online in 2027. The project targets 2 gigawatts of computing capacity, implying hundreds of thousands of GPUs. Nvidia also committed US$1 billion to invest in Naver’s AI cloud infrastructure. Meanwhile, Samsung Electronics signed an estimated US$200 billion agreement with Broadcom to expand cooperation in memory and foundry technologies, highlighting continued massive investment in global AI infrastructure.

Samsung and SK Hynix: South Korea’s President Lee Jae Myung is expected to oversee the announcement of major AI-related agreements between Samsung Electronics, SK Hynix and leading US technology companies during his Silicon Valley visit. The deals are expected to include long-term memory chip supply agreements, strategic partnerships and investment memorandums. The visit follows South Korea’s US$880 billion AI and semiconductor investment plan, with over half of the planned 8GW first-phase AI data centre capacity expected to be converted into concrete projects. Around 80%–90% of the demand underpinning these investments comes from US technology companies. President Lee will also meet executives from Nvidia, OpenAI, Anthropic and Broadcom, and unveil the “San Francisco AI Declaration”, outlining South Korea’s ambition to become a leading AI infrastructure provider.
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Morgan Stanley remains bullish on several stocks ahead of earnings. Alibaba remains a top pick despite a reduced price target of US$180 (from US$190), supported by its cloud leadership, AI growth, strong cash flow, dividends and share buybacks. Grab is expected to report 22% revenue growth and adjusted EBITDA of US$166 million for the second quarter, prompting Morgan Stanley to raise its price target to US$6.25 from US$5.90. The bank also reiterated an Overweight rating on Cadence Design Systems with a US$370 target price, citing Agentic AI and margin recovery, while increasing Natera’s target price to US$310 from US$250. Apple remains fundamentally strong, although Morgan Stanley expects a tougher near-term earnings setup due to its elevated valuation.

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The rapid growth of GLP-1 weight-loss and diabetes drugs is driving a boom in healthcare logistics, prompting major logistics companies to invest heavily in temperature-controlled storage and transportation. Injectable GLP-1 drugs such as Ozempic, Wegovy, Mounjaro and Zepbound require strict cold-chain handling to maintain their effectiveness. UPS recently invested US$48 million in new temperature-controlled facilities, while the global market for temperature-sensitive biologics is expected to grow at a compound annual growth rate (CAGR) of 8.3% through 2033, reaching US$39.1 billion. Demand for GLP-1 drugs has surged, with 11% of Americans using them for weight loss in 2026, up from 3% in 2024.

Healthcare logistics has become a key growth engine for logistics firms. UPS recorded its first-ever US$3 billion healthcare revenue quarter in Q1 2026, driven by growing demand for biologics, cell and gene therapies. FedEx generated nearly US$10 billion in healthcare transportation revenue in fiscal 2026 and has established a dedicated life sciences business, leveraging AI, predictive tracking and its global air network to support increasingly complex pharmaceutical supply chains.

Other logistics providers are also expanding aggressively. C.H. Robinson surpassed US$1 billion in healthcare logistics revenue over the past year, citing strong GLP-1 demand, while DHL plans to invest €2 billion (US$2.25 billion) in healthcare logistics by 2030, with half allocated to the Americas. DHL is also using AI to monitor temperatures, expanding pharmaceutical warehousing services and operating dedicated pharmaceutical air corridors to ensure medicines are delivered on time and within strict temperature requirements.

Overall, the rapid growth of biologic medicines and GLP-1 therapies is transforming healthcare logistics into one of the fastest-growing and most attractive segments for global logistics companies, with cold-chain infrastructure, AI-powered monitoring and end-to-end supply chain visibility becoming key competitive advantages.
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Singapore REIT managers are becoming more cautious on interest rates, with none expecting their average cost of debt to decline. The 3-month compounded SORA has rebounded to 1.15%, and some REIT managers are now forecasting higher funding costs. In the U.S., RHB notes that markets have increased expectations to around 1.8 Federal Reserve rate hikes by end-2026, up from 1.2 hikes just a week earlier. The upcoming FOMC meeting on July 28–29 is still expected to leave the Fed funds rate unchanged at 3.50%–3.75%.

Higher interest rate expectations and geopolitical tensions could strengthen the U.S. dollar and weigh on investor risk appetite, creating a less favourable environment for REITs. Nevertheless, buying interest remains in quality REITs such as CapitaLand Integrated Commercial Trust, Frasers Centrepoint Trust, ParkwayLife REIT, ESR-REIT and Centurion Accommodation REIT.

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Zico Holdings has transformed itself from a regional law firm support provider into a diversified financial services platform under Group CEO Kelvin Ng, who has spent 30 years with the organisation. Ng sees significant growth in Islamic finance, positioning Singapore as a stable hub for Shariah-compliant financial services. Rather than maintaining a presence in all 10 ASEAN countries, Zico is concentrating on high-growth markets such as Indonesia, Thailand and Vietnam, which together represent around 450 million people, with Vietnam’s 100 million population offering strong long-term potential.

Looking ahead, Zico plans to begin the first phase of its AI transformation in 4Q2026, using AI agents to identify cross-selling opportunities before expanding into compliance automation and back-office efficiency. Ng believes execution and cultural transformation, rather than technology, will determine the company’s long-term success as it continues evolving into a leading ASEAN platform for regulated capital, trust, wealth and asset management.

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TeleChoice International has successfully transformed itself after several difficult years, returning to profitability under President and CEO Pauline Wong, who has spent 27 years with the company. After posting losses from FY2021 to FY2023, TeleChoice recorded a $4.2 million profit in FY2024, which increased to $6.6 million in FY2025. The company also resumed dividends, paying 0.125 cents per share in FY2024 and raising it to 0.45 cents per share in FY2025. It exited the SGX watchlist in July 2026 after improving profitability across all three business divisions, while its share price has risen nearly 40% over the past year to 24 cents, giving it a market capitalisation of around $109 million.

The turnaround is reflected in its latest results. In 1QFY2026, PCS reported an 87% year-on-year increase in profit before tax to $2.09 million, NES grew 31% to $170,000, and ICT rose 20% to $60,000, following a strategic shift toward higher-value, long-term enterprise projects.

The company is also expanding its data centre capabilities while maintaining disciplined capital allocation, supported by ST Telemedia, which owns a 50.4% stake. TeleChoice has additionally repurchased 600,800 shares under its buyback programme, with the treasury shares earmarked for employee share schemes and directors’ fees.

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iFast Corporation: iFast delivered another strong quarter, with 2QFY2026 net profit rising 35% year-on-year to $29.85 million, while revenue increased 34.8% to $162.04 million and EBITDA grew 32.7% to $48.89 million. Assets under administration reached a record $36.13 billion, up 32.8%, with all operating markets achieving record highs, including China (+100%), Malaysia (+40.4%), Hong Kong (+36%), Singapore (+30%) and the UK (+25.2%).

The group’s digital bank continued its rapid expansion, reporting 2Q pre-tax profit of $1.92 million, up 174.5%, while 1HFY2026 pre-tax profit rose 53.5% to $2.61 million. Customer deposits increased 25.2% to $1.81 billion.

Reflecting its confidence, iFast raised its FY2026 dividend guidance to 12 cents per share or higher, up at least 43% from FY2025 and above its previous guidance of 10.5 cents. The second interim dividend was increased 50% to 3 cents per share, while the group’s ROE remained strong at 27.2%. Management also indicated there is potential to gradually raise the dividend payout ratio to 40% as shareholders’ equity approaches $1 billion. The platform now offers over 29,600 investment products, including 17,000 funds, 2,600 bonds, and stocks and ETFs across six major markets.

————————————————————————————————————————————————–Seatrium has shown improving technical momentum after a weak second quarter. The stock may rally towards $2.50, supported by its profit guidance for a significantly stronger 1HFY2026 net profit, with full results scheduled for July 31.

Aedge Group seeks to raise $3.5 mil by placing out shares at 21 cents each

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EGP Energy’s IPO offers investors exposure to Singapore’s energy infrastructure sector, with the company seeking to raise S$30.6 million at S$0.51 per share, valuing it at around S$115 million. The proceeds will fund product expansion, capability enhancement, entry into Malaysia and Indonesia, and general working capital. Cornerstone investors have committed to 41.2 million shares, while 18.8 million shares are offered through the IPO.

EGP Energy specialises in engineering, procurement, construction management, and maintenance of transmission and distribution (T&D) infrastructure. It is highly dependent on Singapore, with 80.5% of its 2025 revenue generated from one major utility customer, but it has a strong market position, holding the highest contractor qualification in Singapore’s regulated T&D market. According to Frost & Sullivan, it commands a 37.5% market share in Singapore’s extra high-voltage and high-voltage switchgear segment and 24.9% in the combined switchgear and transformer market. Its order book stands at S$282.1 million, extending through 2031.

The company is well positioned to benefit from Singapore’s energy transition, as electricity demand is expected to grow by 2.8%–4.7% annually between 2025 and 2030, while ageing grid infrastructure requires significant renewal. EGP also plans to pay dividends of up to 40% of net profit in 2026 and 2027. Based on its 2025 net profit of S$10.3 million, earnings equate to approximately 4.57 Singapore cents per share after the IPO.

Its biggest growth opportunity lies in overseas expansion, particularly in Malaysia and Indonesia, where electricity grid investment is substantial. Indonesia plans to invest 191.1 trillion rupiah (about S$13.8 billion) in transmission and substations from 2025–2029, rising to 201 trillion rupiah between 2030–2034, while Malaysia’s Tenaga Nasional plans RM42.8 billion (about S$13.5 billion) of capital expenditure between 2025 and 2027. However, these markets are dominated by government utilities with high barriers to entry, meaning EGP’s overseas expansion remains uncertain and may require local partnerships that could reduce margins. The EGP’s prospectus provides limited discussion on sustainability strategy, which could become increasingly important as investors focus on renewable energy and ESG opportunities.

Singapore also successfully issued S$2.6 billion of new 20-year sovereign green bonds with a 2.375% coupon, priced to yield 2.4% after attracting S$4.6 billion of orders. The green bond market now comprises S$16.1 billion of outstanding green bonds versus S$23.7 billion of conventional long-dated government bonds. The issuance supports long-term infrastructure projects while broadening the investor base and lowering borrowing costs through sustainability financing.

UOB plans to expand its Hong Kong private banking business aggressively, targeting a fivefold increase in assets under management and revenue by 2030, while tripling its relationship manager headcount from 20 to about 60. The bank expects Asia’s private wealth to reach US$99 trillion by 2029, with China-to-ASEAN wealth flows approaching US$100 billion, growing around 9% annually. Since 2020, UOB has facilitated over HK$190 billion (US$24.2 billion) of investment into ASEAN and has helped approximately 2,400 Chinese companies expand overseas, with over 90% choosing Southeast Asia. It sees Hong Kong playing an increasingly important role as a bridge connecting Chinese and ASEAN trade, investment and wealth management opportunities.

Weakness in US markets spilled over to Hong Kong after sharp post-earnings selloffs in Alphabet and Tesla, combined with persistent Middle East tensions. The Hang Seng Index (HSI) fell 247 points (0.98%) to 24,963, after dropping as much as 400 points intraday to 24,812. The Hang Seng Tech Index (HSTECH) declined 68 points (1.47%) to 4,629, while the Hang Seng China Enterprises Index (HSCEI) lost 81 points (0.98%) to 8,271. Market turnover eased to HK$209.9 billion, reflecting weaker investor sentiment.

Technology stocks led the decline, mirroring losses in US peers. Alibaba slumped 4.26%, Tencent fell 2.38%, while Baidu and Kuaishou each dropped more than 2%. Solar and glass stocks were among the biggest losers, with Xinyi Glass down 5.14% and Xinyi Solar falling 4.09%.

Expectations of higher US interest rates weighed on commodity and property sectors. Mining stocks such as CMOC (-4.49%), Chalco (-3.82%) and Zijin Mining (-3.40%) retreated sharply, while major Chinese property developers including China Resources Land (-3.88%), Longfor Group (-3.24%) and Hang Lung Properties (-3.18%) also declined.

Banking stocks were mixed. BOC Hong Kong bucked the market by surging 5.98% to a record HK$51.25 after JPMorgan upgraded the stock and raised its target price to HK$53.30. Bank of East Asia also gained 6.03%, while HSBC slipped 0.06% and Standard Chartered fell 1.15%. Overall, rising geopolitical risks and expectations of tighter US monetary policy continued to pressure Hong Kong equities.

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Malaysia F&B IPO boom

Malaysia has experienced a wave of F&B IPOs following the successful listing of Oriental Kopi in early 2025, but most newly listed companies have struggled to sustain their post-listing performance. Since Oriental Kopi’s debut, A1 AK Koh Group, HSS Holdings, Empire Premium Food and RT Pastry Holdings have listed, yet only Empire Premium delivered a strong first-day gain, rising 48.5% from 70 sen to RM1.04. Most others traded at or below their IPO prices shortly after listing.

Despite Oriental Kopi’s strong revenue growth (42.7%) and net profit increase (8.7%) in 2QFY2026, earnings fell short of expectations, leading its share price to decline to 91 sen, valuing the company at RM1.81 billion. Nevertheless, more F&B companies, including Bestari Food and Custom Food, are preparing IPOs.

Among listed names, SDS Group stands out with FY2026 net profit of RM33.3 million on RM345.7 million in revenue and a 9.6% net margin, despite its share price falling 46% over the past year. Analysts also remain positive on Oriental Kopi because of its outlet expansion and higher-margin FMCG products. In contrast, Berjaya Food, operator of Starbucks Malaysia, continues to struggle due to weak pricing power and intense competition. Overall, analysts believe investors should focus on companies with resilient same-store sales growth, strong cash flow, pricing power and disciplined capital management rather than simply buying stocks trading below their IPO prices.

Thank you

Dow Jones Industrial Average gained 235.60

Malaysia F&B IPO boom

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