Third consecutive weekly gain took STI to new closing high

Date: September 8, 2025

• The STI rose 0.9% to new closing high of 4,307.08
• Odds of a Sep US rate cut are now 100%
• Yangzijiang Shipbuilding in play after clinching US$920m in new orders
• Boustead Singapore aims to list logistics, industrial REIT
• Singapore Paincare received letters of claim worth S$350,000 to S$450,000
• mm2 Asia says voluntary liquidation of Cathay Cineplexes unlikely to affect operations
• Institutions were net buyers between Aug 22-28: SGX Research
• Olam and Yangzijiang Financial added to STI reserve list

A new all-time high for the STI

The Straits Times Index last week posted its third consecutive weekly gain, adding about 38 points or 0.9% at a new all-time closing high of 4,307.08. Average daily volume was a bit lower than usual at S$1.32b.

Underpinning the market’s sentiment were continued hopes of a US rate cut at the next US Federal Reserve meeting which is due to be held on 17 Sep.

After weak US jobs report, probability of Sep rate cut now 100%

In the first jobs report since President Donald Trump fired the head of the Bureau of Labor Statistics, the agency reported that employers added a paltry 22,000 nonfarm positions in August. Perhaps more alarmingly, an update to the June tally showed the economy lost 12,000 jobs that month.

The weak hiring, plus uncertainty over tariffs raise the odds of an economic slowdown and provide strong support to cut rates at the Sept. 16-17 meeting of the Federal Open Market Committee.

As of Friday, according to the CME FedWatch tool, the futures market was pricing in a 100% chance of a rate cut on 17 Sep – 92% that it will be 25 basis points and 8% that it will be 50 basis points.

The S&P 500 closed up 0.3% for the week, with the Dow Jones Industrial Average down 0.3% and the Nasdaq rallying by 1.1%.

Yangzijiang Shipbuilding in play after clinching US$920m in new orders

Over the week, Yangzijiang Shipbuilding stood out among STI components with a S$0.19 or 6.53% jump to S$3.10 after it announced the new orders worth US$920 million.

The new vessels are due for delivery between 2027 and 2029, and will not “have any significant impact on the earnings” for 2025, it said.

The new orders mean that Yangzijiang Shipbuilding has secured orders with an aggregate value of nearly US$1.5 billion in the year to date.

Goldman Sachs initiated coverage of the stock with a “buy’’ and a price target of S$4, citing a 13% average net margin over the past decade and strong competitive advantage, especially in containerships.

Boustead Singapore aims to list logistics, industrial REIT

Boustead Singapore has applied to list a real estate investment trust (REIT)  on the Singapore Exchange – one with a portfolio that includes its Singapore logistics and industrial real estate assets and other properties not held by Boustead.

The engineering and technology group said that its application is on behalf of UIB Holdings, the proposed sponsor of the REIT. Boustead holds a 20% interest in UIB through Boustead Projects.

Boustead reiterated that the IPO and listing are subject to market conditions and negotiations with various counterparties, the relevant regulatory body and its shareholders.

Singapore Paincare received letters of claim worth S$350,000 to S$450,000

Medical services company Singapore Paincare said it has received letters of claim dated Aug 6^th and 7^th  worth between S$350,000 and S$450,000 from lawyers representing Lim Seow Yuen, claiming that she provided services to the company in 2020 due to “promises and assurances” allegedly made by Singapore Paincare CEO Bernard Lee.

Lee informed his company about the letters on Aug 11, denying the allegations. He said that the financial arrangements he made with Lim were in his “private capacity”. He denied that the arrangements were made on behalf of the company for its listing on SGX Catalist.

“Accordingly, there is no basis for Ms Lim’s claim against the company,” said Singapore Paincare lead independent director Wong Yee Kong. “Dr Lee is confident that the company will succeed in its defence should Ms Lim bring proceedings’’.

The company’s board added that Lim’s lawyers also issued a letter on Aug 26 to Novus Corporate Finance and the Singapore Exchange, asserting that Lee and Singapore Paincare owed Lim more than S$1 million – well above the S$350,000 to S$450,000 claimed in the Aug 6 and 7 letters.

mm2 Asia says voluntary liquidation of Cathay Cineplexes unlikely to affect operations

Entertainment company mm2 Asia said the voluntary liquidation of Cathay cineplexes is not expected to adversely impact its core businesses or continuing operations.

Instead, liquidating the struggling cinema chain may improve the group’s overall liquidity and profitability given that Cathay has been cash-flow negative and loss-making since the pandemic, said mm2.

This was in response to queries raised by the Singapore Exchange regarding the creditors’ voluntary liquidation of Cathay, which was announced earlier this week. Shortly after, the cinema chain – which owes money to the landlords of several of its outlets – ceased operations.

The company explained that Cathay’s weak financial performance was already consolidated and publicly disclosed.

Its core content business continued to perform strongly, contributing S$109.8 million in revenue in FY2025, the group noted. Earnings before interest, taxes, depreciation and amortisation came in at S$24.7 million, supported by diversified demand across Singapore, China, Taiwan, Hong Kong and Malaysia.

Institutions were net buyers between Aug 22-28: SGX Research

In a 1 Sep Market Update, SGX Research reported that over the five trading sessions from August 22 to 28, institutions were net buyers of Singapore stocks, with net institutional inflow of S$33 million, partially reversing the S$53 million in net institutional outflow for the preceding week.

“Over the five trading sessions through to August 28, the stocks that saw the highest net institutional inflow included Singtel, Jardine Matheson Holdings, Hongkong Land Holdings, UOL Group, Keppel, Suntec Real Estate Investment Trust, CapitaLand Ascendas REIT, LHT Holdings, CapitaLand Investment, and Frasers Centrepoint Trust’’ said SGX Research.

“Meanwhile DBS Group Holdings, Oversea-Chinese Banking Corp, Singapore Tech Engineering, ComfortDelGro Corporation, Sembcorp Industries, Great Eastern Holdings, CapitaLand Integrated Commercial Trust, Thai Beverage Public Co, Mapletree PanAsia Commercial Trust, and Golden Agri-Resource led the net institutional outflow over the five sessions’’.

Olam and Yangzijiang Financial added to STI reserve list

Following the Straits Times Index’s (STI) latest quarterly review, food and agricultural giant Olam Group and investment management company Yangzijiang Financial will be added to the STI reserve list.

They will replace hospitality player CapitaLand Ascott Trust and transport operator ComfortDelGro.

The STI reserve list is made up of the five highest-ranking non-constituents of the STI by market capitalisation. Stocks on the reserve list replace STI constituents that become ineligible as a result of corporate action before the next quarterly review in December.

The other three companies on the reserve list are Keppel Real Estate Investment Trust (REIT), NetLink NBN Trust and Suntec REIT.

The changes take effect at the start of business on Sep 22.