Despite Friday’s selloff, the STI gained 1.2% and set three all-time high records along the way

Date: November 17, 2025

• The STI rose 1.2% to 4,546.07 driven by Singtel and OCBC
• On Wall St, investors are questioning the AI theme
• Probability of a Dec US rate cut now only 44%
• Analysts generally positive on DBS & OCBC; cautious about UOB
• Singtel’s 1H net profit up 176.4% to S$3.4b; shares rise to all-time high
• SIA’s 3Q profit down 82.1% because of Air India losses, declares special dividend
• SATS reported 13.3% rise in Q2 net profit to S$78.9m due to tariff front-loading
• Entertainment firm mm2 Asia seeks four-month High Court moratorium

The STI set three all-time highs last week, gaining 1.2%

A large Wall Street selloff on Thursday led to selling pressure here on Friday, though it wasn’t enough to prevent the Straits Times Index from recording a fourth consecutive weekly gain, this time 54 points or 1.2% at 4,546.07.

During the week the index rose to three consecutive all-time closing highs between Tuesday and Thursday, the last being 4,575.91, propelled not by DBS but Singtel and OCBC.

Average daily volume traded was S$1.82b.

On Wall Street the AI theme is under scrutiny

It was a mixed five days for Wall Street, though the benchmark S&P 500 index managed to rebound from the previous week’s sharp selloff with marginal gains. A boost to sentiment from the end of the longest U.S. government shutdown and positive trade developments was offset by continued weakness in the artificial intelligence trade and hawkish comments from Federal Reserve speakers.

The AI narrative remains under pressure, and concerns over stretched valuations and unsustainable capital spending again hit tech stocks this week. The Global X Artificial Intelligence & Technology ETF has now slid more than 5% in two weeks.

Meanwhile, policymakers such as Cleveland Fed President Beth Hammack and Boston Fed President Susan Collins cautioned against further interest rate cuts amid the lack of economic data.

On that front, however, traders received a reprieve after the U.S. government shutdown ended on Wednesday with the passing of a spending Bill, lasting nearly 43 days and becoming the longest in American history.

This means that economic data will return, with the Bureau of Labor Statistics confirming a release this Thursday of the much-anticipated September nonfarm payrolls report.

For the week, the S&P 500 gained 0.1%, while the blue-chip Dow added 0.3%. and the tech-heavy Nasdaq Composite slipped 0.5%.

Probability of a Dec US rate cut down to 44%

According to reports, more Fed officials have begun to see the risk of persistent inflation as greater than that of a cooling labour market, a change from earlier this year.

As a result, the market now see only a 44% chance of a December cut, compared with the near-certainty priced in last month.

Analysts generally positive on DBS and UOB, more cautious about UOB

The Straits Times on Saturday reported that analysts are positive on DBS Bank and OCBC Bank after the two banks posted strong third-quarter results, but more wary of UOB, whose earnings for the period were hit by higher loan provisions.

Raising its fair value estimate for DBS shares from $54 to $55, head of OCBC Investment Research Carmen Lee said that DBS’ capital return strategy should provide strong share price support.

In 2026, DBS plans to increase its quarterly dividend payout to 81 cents per share, which includes a six cents increase in the ordinary dividend to 66 cents and a 15 cents capital return dividend.

RHB kept its “buy” call on DBS with a target price of $59, saying the bank’s dividend and capital return thesis remains intact.

However, Morningstar’s director of Asian equity research Lorraine Tan said DBS shares are “not cheap” and appear “overvalued”.

“We believe DBS’ strength against peers has already been priced in, and shares are now overvalued, trading at a 15% premium to our valuation,” she said, citing a fair value estimate of S$48.

Macquarie Group’s head of Asean equity research Jayden Vantarakis reckons DBS will underperform, and expects its shares to be worth S$46 in 12 months.

RHB noted that while the hike in provisions has made a dent in UOB’s profits, 2026 earnings should see a rebound given that the provision buffers are built up and credit costs are expected to return to normal levels. The bank kept its “neutral rating” on the stock at a target price of $36.10.

Mr Vantarakis of Macquarie said the firm believes provisions are now adequate, but added that investors will look out for normalisation.

“It’s clear that a lot of scepticism remains, which means that a couple of quarters of normal provisions will be required for stock outperformance,” he said.

“We upgrade from underperform to neutral as the large provision charge in the third quarter of 2025 clears the decks for better sequential performance,” he added.

Ms Lee from OCBC Investment Research added that UOB’s recent share price drop offers an opportunity to accumulate the stock, which she estimates has a fair value of S$38.20.

Meanwhile, OCBC emerged as a standout among the three banks, with analysts citing robust NII and solid wealth momentum that stood out among its peers.

Mr Vantarakis said that OCBC’s wealth momentum, measured by fee growth and assets under management increase, was the highest among peers, setting a strong base for 2026.

“OCBC is our preference among the Singapore banks, over DBS and UOB. The balance sheet is most defensively positioned in terms of exposure to trade and general allowances.

“Guidance has also been conservative, presenting less risk to the outlook relative to peers,” he said. The analyst is upgrading OCBC to “outperform” with a 12-month target price of S$19.90.

Over the week, DBS’s shares fell S$0.99 or 1.8% to S$53.99, UOB rose S$0.14 or 0.4% to S$34 and OCBC jumped S$0.74 or 4.2% to S$18.52.

Singtel’s 1H net profit up 176.4% to S$3.4b

Singtel reported posted a 176.4% increase in net profit to S$3.4 billion for the first half-year ended September, from S$1.2 billion in the year-ago period.

It has also revised its operating companies’ (Opco) earnings before interest and tax (Ebit) guidance for FY2026 ending March to a wider range of “high single digit to low double digit”, an upgrade from the group’s original guidance of “high single digit” at the start of the financial year.

The revision comes on the back of a strong first-half Opco Ebit growth of 14% in constant currency terms.

The latest net profit figure was boosted by a net exceptional gain of S$2.1 billion, mainly from the sale of a partial stake in Airtel in May and the Intouch-Gulf merger.

Excluding these one-off items, underlying net profit climbed 13.7% to S$1.4 billion, driven mainly by improvements at regional associates Airtel and AIS, as well as Opcos NCS and Optus.

Singtel’s Opcos include Australian telco Optus, technology services provider NCS, data centre operator Nxera and the local operations in Singapore.

The board has approved an interim dividend of S$0.082 per share for H1, comprising a core dividend of S$0.064 per share and a value realisation dividend of S$0.018 per share. This is higher than the interim dividend of S$0.07 per share paid out the year before.

Over the week, Singtel’s shares gained S$0.23 or 5% to an all-time high of S$4.86.

SIA’s 3Q profit down 82.1% because of Air India losses, declares special dividend

Singapore Airlines (SIA) posted an 82.1% drop in net profit to S$52 million for the second quarter of FY2026 ended September largely to the share of results of associated companies and lower interest income.

Operating profit rose 22.5% to S$398 million for the quarter whilst revenue for came in at S$4.9 billion, up 2.2%.

For the first half of FY2026 ended September, SIA posted a 67.9% drop in net profit to S$238.5 million.

The group attributed the fall in net profit to losses by its associate Air India, which were not included in its financial results for the previous year. The group began equity-accounting for Air India’s financial performance from December 2024, following the full integration of Vistara into Air India.

The group said that it plans to return capital to shareholders via a special dividend package of S$0.10 per share yearly over three financial years. This will amount to about S$900 million over the period.

As the first payment from this package, the board has declared an interim special dividend of S$0.03 per share, which will be paid on Dec 23. It will apply to shareholders as at Dec 8.

The second tranche of S$0.07 per share for FY2026 is subject to shareholders’ approval at the annual general meeting in 2026. If approved, SIA expects to pay special dividends amounting to S$0.10 per share in FY2027 and FY2028.

Separately, the board has declared an interim dividend of S$0.05 per share for the half-year ended Sep 30.

SIA’s shares dropped S$0.13 to S$6.52 on volume of 16.5m on Friday following the results. For the week they lost S$0.06 or 0.9%.

SATS reported 13.3% rise in Q2 net profit to S$78.9m due to tariff front-loading

In-flight caterer and ground handler SATS announced a Q2 FY2026 net profit of S$78.9 million, up 13.3% from the previous year.

Revenue for the three months ended Sep 30 increased 8.4% year on year to S$1.6 billion.

The group attributed this to the strong performance of its cargo handling business as well as steady contributions from its ground handling and food services segment.

“While volumes were strong, we recognise that the quarter benefited in part from front-loading ahead of tariff changes. We are actively managing our capacity and resources as demand patterns evolve,” said Kerry Mok, chief executive officer of SATS.

The group declared an interim dividend of S$0.02 per share, payable on Dec 5. This was higher than the S$0.015 announced in the corresponding period a year ago.

SATS’ shares fell S$0.08 to S$3.47 on volume of 6.3m following the results. They were unchanged for the week.

Entertainment firm mm2 Asia seeks four-month High Court moratorium

Embattled entertainment group mm2 Asia is seeking a court moratorium that could prohibit winding-up resolutions from being passed for a four-month period, as it pursues a restructuring exercise involving a proposed scheme of arrangement with creditors.

The company’s board also said that mm2 Asia is unable to demonstrate that it can continue as a going concern.

The company said it applied to the High Court of Singapore for a moratorium pursuant to the Insolvency, Restructuring and Dissolution Act. Earlier in the day, it announced that it had received a S$74.6m payment demand from UOB.

The latest move comes as mm2 Asia attempts to reorganise its business and financial affairs, having received payment demands for millions of dollars from landlords of outlets of its failed cinema chain Cathay Cineplexes since the start of the year.

“The board, having received advice, is of the view that a court-supervised reorganisation process is in the best interests of all stakeholders,” said mm2 Asia, explaining that this would “preserve the value of the group’s core business and allow management to focus on operational continuity”.

The company later reported a net loss of S$39.7 million for the half-year ended Sep 30, widening from the net loss of S$3.9 million for the year-ago period.