Tech rout that started in the US plus uninspiring bank results push STI down 3.7% below 5,200

Date: November 10, 2026

• US election rally gave way to heavy AI/tech selling
• Uninspiring Q3 bank results sent bank stocks plunging 4.3-11%, STI lost 197 points or 3.7% at 5,179.17
• UOB Q3 net profit almost trebles to S$1.25 billion off low base, but misses forecasts
• Analysts mixed in their UOB recommendations
• OCBC Q3 profit rose 3% to S$2.04 billion, slightly above expectations
• DBS’s Q3 profit fell 5% to S$2.81b on weaker trading income
• Tech stocks led October’s decline: SGX Research
• Small and mid-caps enjoying more attention: SGX Research
• Great Eastern Q3 profit falls 72% to S$102.9 million on weaker valuations, divestment loss
• Singapore factory growth slows in October as manufacturing PMI dips to 51.4

 

Tech/AI selling and uninspiring bank results dragged STI down 3.7%

The bursting of the AI bubble and uninspiring bank results last week combined to cut about 197 points or 3.7% off the Straits Times Index, dragging it below the 5,200 mark to 5,179.17, the lowest since the 17^th of June.

Average daily volume traded swelled to S$2.7b versus S$1.57b the previous week. Much of the incentive to sell came from Wall Street where a US mid-term election rally immediate gave way to heavy tech selling

 

US election rally gave way to heavy AI-related selling

Wall Street rallied strongly on Wednesday with the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite surging 3.03%, 1.58% and 1.4% respectively, reportedly because of the US mid-term election result which saw the Democratic party gain control of both houses of Congress.

However, the rally gave way to near-panic selling on Thursday, with the three major indices plunging 3.44%, 4.36% and 5.52% respectively.

Chipmakers and tech giants suffered steep losses as investors questioned whether massive capital expenditures into AI would yield proportional returns.

The tech-heavy Nasdaq Composite entered correction territory, while the Philadelphia Semiconductor Index plunged heavily and major names like Nvidia, AMD, Micron, and Sandisk saw sharp double-digit declines.

The sell-off comes on top of broader concerns about whether the huge amounts being spent on AI will pay off.

Democrats in races across the US campaigned to slow the onslaught of data centres and AI, and there were dozens of measures on ballots around the country aimed at restricting the development of the hubs crucial for powering the technology.

For example, Texas governor-elect Gina Hinojosa campaigned heavily against data centres, pledging a moratorium on new construction in the sector.

Shares in companies heavily exposed to AI data centres, including crucial chipmakers and semiconductor manufacturers, fell sharply on Thursday, highlighting investor concerns that had already been growing.

Stocks bounced back  slightly on Friday to end a rough week on a high note–though it wasn’t enough to make up for the dramatic selloff seen earlier in the week.

The Nasdaq Composite popped 1.1%, but closed the week 3.4% lower. The S&P 500 rose 0.3% for a weekly drop of 2.7%. The Dow Jones Industrial fell 0.5%, or 236 points, on Friday for a weekly loss of 0.9%.

On the economic calendar, October U.S. ISM Services growth ticked down as new order growth slowed, and U.S. nonfarm payrolls jumped by 165,000 in October, more than doubling what the markets expected.

The probability of a 25-basis-point increase in interest rates during the FOMC’s December meeting is now 77.1%, according to the CME FedWatch Tool.

 

UOB Q3 net profit almost trebles to S$1.25 billion off low base, but misses forecasts

UOB reported a 182.2% rise in net profit for the third quarter ended Sep 30, 2026, to S$1.25 billion, from S$443 million in the year-ago period.

However this was below the S$1.38 billion consensus forecast among six analysts polled by Bloomberg.

The increase came off a low base, after UOB’s net profit dived 72% in Q3 2025, weighed down by S$1.36b in allowances for credit and other losses amid macroeconomic uncertainties and sector-specific headwinds.

Earnings in the latest quarter were supported by record net fee income on the back of growth in the lender’s wealth, cards and loan-related businesses.

Customer-related treasury income also reached a new high, driven by strong demand for hedging solutions.

Net interest income for the quarter grew one per cent to S$2.28 billion, from S$2.27 billion in the same period last year.

This came as net interest margin, a key measure of lending profitability, narrowed to 1.68%, from 1.82% previously.

 

Analysts mixed in their UOB recommendations

CGS International, Citigroup, Jefferies, Maybank and RHB lowered their target prices on the bank although their recommendations diverged.

Maybank upgraded the counter to “buy” from “hold”, citing improving wealth and loan growth momentum. “Amid rising rates, better loan growth and execution of its strategic initiatives, we think risks for upside surprise are now higher’’ said Maybank as it set a S$45.75 target price.

RHB trimmed its earnings estimates on the bank, but noted that UOB’s forecasted profit after tax and minority interests (Patmi) growth for FY2027 was “still decent”, adding that the valuation gap to peers was “too wide to ignore”.

Citi analyst Tan Yong Hong said UOB is unlikely to ride the wave of higher interest rates to the same extent as its peers. Citi reiterated its “sell” rating and lowered its target price to S$35.30.

Tan said that management had “downplayed” the bank’s sensitivity to the rising Singapore Overnight Rate Average (SORA), citing tighter lending spreads amid competition, the repricing of fixed rate assets and higher funding costs.

Jefferies noted that for FY2027 and FY2028, higher fee income is “more than offset” by operational expenditure growth.

“In our view, the heavier investment cycle raises execution risk, as revenue must accelerate to absorb higher costs while NIM stays under pressure,” Jefferies’ analysts added as they set a target price of S$42 with a “hold’’ call.

Similarly, CGS International cited higher operating costs as a reason for cutting FY2027 and FY2028 earnings estimates; it noted that accelerated spending on IT infrastructure and wealth management staffing would “dampen” near-term return on equity.

Its recommendation is “hold’’ with a S$42.60 target price. For the week UOB’s shares crashed S$4.49 or almost 11% to end at S$36.88.

 

OCBC Q3 profit rose 3% to S$2.04 billion, slightly above expectations

OCBC’s net profit for its third quarter rose 3% to S$2.04b as strong performance across its wealth management and wholesale banking businesses offset lower contributions from insurance arm Great Eastern.

The earnings came in slightly above the S$2 billion consensus forecast in a Bloomberg survey of seven analysts.

Net interest income for the quarter rose 4% to S$2.31 billion, supported by growth in average assets, from an increase in both customer loans and high-quality non-commercial assets.

Net interest margin fell 18 basis points (bps) to 1.66% for Q3 FY2026, from 1.84 per cent in the previous corresponding period, amid a lower interest-rate environment.

Non-interest income declined 10% to S$1.42 billion, mainly reflecting weaker investment performance by Great Eastern.

For the week, OCBC’s shares lost S$1.56 or 5.3% at S$27.73.

 

DBS’s Q3 profit fell 5% to S$2.81b on weaker trading income

DBS reported that net profit for the three months ended Sep 30 stood at S$2.81 billion, down 5% largely due to a 65% decline in markets trading income to S$152 million, amid unfavourable market conditions.

Earnings per share came in at S$3.93, down from S$4.12 previously.

The earnings missed the S$2.95 billion consensus forecast in a Bloomberg survey of eight analysts.

Net interest income rose 4% to S$3.71 billion in Q3, as hedging and strong balance-sheet growth more than offset the impact of lower SORA rates.

Group net interest margin (NIM) was down nine basis points (bps) at 1.87% for the quarter, from 1.96% in the previous corresponding period.

Maybank on Friday said that wealth is continuing to see strength and fee income is positioned for resilience.

“The Group is investing in agentic AI to increase productivity and improve customer stickiness. These should support medium term ROEs. Maintain BUY with lower S$80.52 target price’’ said Maybank. Its previous target price was S$85.86.

For the week DBS’s shares dropped S$3.41 or 4.3% to S$69.72.

 

Tech stocks led October’s decline: SGX Research

In a 2 November Market Update, SGX Research said that the FTSE ST All-Share Technology Index fell 17.3% in October, compared with the STI’s 5.2% total-return decline, while the Singapore REIT Index was more defensive with a 1.4% decline.

“October’s technology declines followed substantial gains: AEM, UMS and Frencken fell 23%–26% for the month but retained ten-month total returns of 335%, 80% and 47%, respectively. All three recorded institutional net outflows in October, while remaining net inflow recipients over the first ten months of 2026’’ reported SGX Research.

“CICT led October’s institutional net inflows with S$79.2 million and a 2% total return, while CapitaLand Ascendas REIT recorded its second-highest monthly traded value on record, behind March 2020. The three strongest-performing REITs in October were Acrophyte Hospitality Trust, Frasers Centrepoint Trust and Suntec REIT’’.

SGX Research also said that October saw an overall institutional net outflow of S$1.55B whilst utilities, real estate ex-REITs and telecommunications bucked the trend with net inflow of S$47.0M, S$11.6M and S$6.3M, respectively.

“The largest net inflow contributors were Sembcorp Industries, Hongkong Land, Singtel and StarHub’’ said SGX Research.

 

Small and mid-caps enjoying more attention: SGX Research

In a 3 Nov Market Update, SGX Research said the current group of 230+ small- and mid-cap companies (SMIDs), defined as SGX-listed companies with market capitalisation of between S$100 million and S$10 billion, have a combined market capitalisation of S$290 billion, up approximately 20% from S$242 billion as of 30 June 2025.

“Their combined average daily turnover (ADT) for the first 10 months of 2026 (10M26) has increased more than 80% from the first half of 2025 (1H25), from S$368 million to S$675 million’’ reported SGX Research.

The five largest SMID ROE (return on equity) improvements were recorded by DFI Retail Group, iX Biopharma, CNMC Goldmine Holdings, Sing Holdings and AvePoint. ROE accretion was 125.0 ppt, 72.5 ppt, 38.2 ppt, 33.3 ppt and 24.6 ppt, respectively. DFI Retail Group’s ROE increased from -31% to 94%, while iX Biopharma improved from -174% to -101% but remained negative. AvePoint also moved from negative to positive ROE, from -8% to 16%’’.

 

Great Eastern Q3 profit falls 72% to S$102.9 million on weaker valuations, divestment loss

Insurer Great Eastern posted a net profit of S$102.9 million for its third quarter ended Sep 30, 72% down from S$372 million in the year-ago period mainly because of the “negative impact of financial market movements on the valuation of investments and a non-recurring loss arising from the partial divestment of the group’s subsidiary, Great Eastern Life Indonesia (Geli), to OCBC Indonesia”, the group said in its Q3 business update.

Following the completion of the Geli transaction on Sep 1 to comply with local regulatory requirements, Great Eastern ceased to have control over the subsidiary. The transaction resulted in a loss on disposal of S$57.1 million, which was substantially offset by a reclassification gain of S$52.6 million in other comprehensive income.

Accordingly, while the transaction reduced reported net profit, its overall impact on the group’s total comprehensive income was “broadly neutral”, Great Eastern added.

For the three months, the group’s new business embedded value rose 14% on the year to S$208.2 million from S$182.2 million.

 

Singapore factory growth slows in October as manufacturing PMI dips to 51.4

Singapore’s factory activity expanded for the 15th consecutive month in October, albeit at a slower pace, with economists expecting manufacturing growth to remain resilient on the back of sustained demand for artificial intelligence-related electronics.

The purchasing managers’ index eased 0.3 point from September to 51.4 last month. A reading above 50 indicates expansion, while one below 50 indicates contraction.

Within manufacturing, the PMI for the key electronics sector cooled, dipping 0.4 point to 52.5, signalling continued but slower expansion.

DBS senior economist Chua Han Teng expects Singapore’s manufacturing sector to remain resilient in the near term.

He noted that the electronics new export orders index rose to 53.2 in October, its highest since May 2018, while order backlogs remained elevated, pointing to sustained demand for electronics goods.

Chua said this reflects “strong external demand for AI-related hardware, supercharged by the ongoing AI infrastructure build-out”.

OCBC chief economist Selena Ling similarly expects manufacturing activity to continue expanding, although she cautioned against extrapolating the sector’s exceptional performance this year into 2027.

“While there is a reasonable prospect of continued expansion, growth rates are likely to normalise into 2027,” she said.