In line with Wall St, the market took a breather with STI down 0.1% below 5,700

Date: August 24, 2026

• The STI fell about 0.1% in uneven trading to 5,688.96
• Rising US bond yields meant US indices also closed lower over the week
• All eyes on Fed chief Kevin Warsh and his Jackson Hole speech
• Futures market is currently pricing in 40% chance of rate hike in Sep
• Koh Brothers Eco Engineering faces up to S$57.6 million in potential legal liabilities
• Sats Q1 net profit up 6% at S$75.1 million on cargo growth
• Economists raise full-year NODX growth forecasts despite July’s disappointing 24.2% rise

 

The STI lost its grip on the 5,700 mark in lower daily volume

The Straits Times Index dropped about 55 points or 0.1% to 5,688.96 over the week in rocky trading, very much in line with Wall Street’s movements. Banks, Singtel, ST Engineering and Keppel were the prime movers, whilst average daily volume traded dipped to S$1.97b versus S$2.8b the previous week.

 

How Wall Street fared – uneven trading, all indices recorded weekly losses amidst rising bond yields

The main US stock indices closed higher on Friday but showed declines for the week, which was marked by investor jitters over fluctuating government bond yields and a lack of clarity on progress in the Middle East.

The S&P 500 and the tech-heavy Nasdaq snapped three-week winning streaks, while the Dow registered its second consecutive weekly loss.

Equity investors have been taking their cues from the direction of US government bond yields in recent sessions as the prospect of higher borrowing costs dampened risk appetite.

Stocks had closed sharply lower on Thursday when the yield on the 10-year Treasury note rose to nearly 4.7% and the 30-year yield bounced up to 5.24%.

UBS Global Wealth Management raised its year-end target for the S&P 500 to 8,100 versus Friday’s close of 7,674, citing a stronger earnings outlook and robust corporate profit growth.

Adding to inflation concerns, however, oil futures settled higher for a sixth straight day, after US President Donald Trump threatened economic sanctions on Iran’s trading partners, raising expectations of tighter supply.

For the week, Brent futures gained 6.4% while US crude rose 5.7%. For the week, the blue-chip Dow fell 0.85%, the benchmark S&P 500 lost 1.43%, and the tech-heavy Nasdaq Composite handed back 2.05%.

 

All eyes on Fed chief Kevin Warsh and Jackson Hole speech

Against the backdrop of the majestic Grand Teton mountains, US Federal Reserve chairman Kevin Warsh will deliver a speech this week at Jackson Hole, Wyoming, that is likely to have a profound impact on his term as chairman of the Federal Reserve and the credibility of the central bank.

Warsh, who succeeded Jerome Powell in May, has said that he wants to use the speech to frame the “big questions” facing the Fed—concerns around inflation targets, productivity, demographic changes, and global economic shocks.

“Warsh is going to have to address the elephant in the room, which is inflation,” says Patrick Harker, former Philadelphia Fed president currently serving as a professor at the Wharton School of the University of Pennsylvania.

“He’s got to actually say more than ‘we’re in the fight.’ That’s not going to fly. If that’s going to be his approach, it’s going to really be a disappointment to the markets.”

As of Friday, the futures market was pricing in a 40% chance that the Fed will raise interest rates by 25 basis points at its 16 September meeting.

 

Koh Brothers Eco Engineering faces up to S$57.6 million in potential legal liabilities

Catalist-listed Koh Brothers Eco Engineering on Tuesday disclosed three major legal disputes which are exposing it to nearly S$57.6 million in potential liabilities.

This came just hours before an extraordinary general meeting (EGM) at which shareholders voted in favour of moving the company to the mainboard, for which approval was granted by the exchange on 1 July.

The engineering and construction company flagged a maximum exposure of S$20.5 million in a joint-venture (JV) dispute, alongside a S$23.3 million consortium arbitration and a subcontractor claim of up to S$13.78 million.

The most pressing development involves the JV counterclaim.

The company said that the Singapore High Court on Aug 6 dismissed applications by its subsidiary, Koh Brothers Building & Civil Engineering Contractor (KBCE), to set aside partial arbitration awards. The JV partner then applied to the tribunal for final payment orders on Aug 7.

While Koh Brothers estimated its maximum exposure regarding these counterclaims at S$20.5 million, it noted that the JV account still holds more than S$40 million in undistributed funds.

KBCE and Koh Keng Siang, Koh Brothers’ non-executive, non-independent chairman, are also facing a lawsuit from a former subcontractor seeking between S$9.18 million and S$13.78 million for alleged wrongful termination and conspiracy. The parties have agreed to undergo mediation.

Despite the legal proceedings, the company said that the disputes do not cast significant doubt on its viability as a going concern. It cited a net asset position of S$124.7 million as at Jun 30 and expects that the consortium and subcontractor disputes will not reach definitive conclusions within the next 12 months.

Koh Bros Eco Engineering’s shares on Tuesday fell S$0.011 or 9.65% to S$0.103 on volume of 14.5m. Koh Brothers’ shares closed unchanged S$0.27 with 752,100 shares traded.

 

Sats Q1 net profit up 6% at S$75.1 million on cargo growth

SATS reported a 6% increase in net profit to S$75.1 million net profit for its first quarter ended 30 June 2026.

The increase in net profit is partially supported by lower interest expense, said the provider of gateway services and food solutions.

Earnings per share rose to S$0.051, from S$0.048 in the same period of the previous year.

Revenue for the group rose 11.3% to S$1.7 billion, driven by an 8.6% rise in cargo volume growth.

“Strong cargo volume growth in all regions amid ongoing geopolitical instability reflects our agility in capturing shifting trade flows,” noted SATS in its bourse filling.

Cargo processed in Asia-Pacific increased by 8.5%, while that in Europe, Middle East and Africa grew 8.2%. The Americas region grew 9.5%.

However, the group noted that geopolitical tensions and supply chain disruptions have resulted in increased fuel, transportation and other operating costs across the supply chain.

“As these costs typically flow through with a lag, their financial impact could be more pronounced in the coming quarters should the current situation persist,” said the group.

 

Economists raise full-year NODX growth forecasts despite July’s disappointing 24.2% rise

Economists have raised their full-year forecasts for Singapore’s key export growth, even after July’s non-oil domestic exports (NODX) reading came in below expectations.

Their forecasts were escalated on expectations that artificial intelligence-related demand will continue to support the electronics sector.

NODX grew 24.2% year on year in July, extending a 20.8% rise in June and marking a fifth straight month of double-digit growth.

But the reading fell short of private-sector economists’ median expectation of 26.5% growth, indicated a poll by Bloomberg.

For the first seven months of the year, NODX growth averaged 19.4%, driven almost entirely by electronics exports, which surged 112% year on year in July, from 105.1% in June.

Nomura economists Euben Paracuelles and Yiu Chen said the July figure was “boosted by broadening AI-related demand”, with electronics NODX growth on a three-month moving average basis surging to 103.9%, from 88.1%, “consistent with the global tech uptrend”.

Despite the disappointing July reading, several economists raised their full-year NODX forecasts on the back of a stronger-than-expected H1 performance.

EnterpriseSG had raised its 2026 NODX growth forecast on Aug 11 to a range of 14 to 16% from 3 to 5% previously, given the exceptionally strong electronics-led first-half performance.

RHB raised its full-year NODX growth forecast to 15.5%, from 11.5% previously.

Analysts Barnabas Gan and Laalitha Raveenthar said the revision was driven by “the stronger-than-expected year-to-date performance and sustained strengths in the electronics and electricals exports”.