Welcome to this week’s edition of top stock market highlights.
This week brought a striking vote of confidence in Singapore’s economy, with the government lifting its full-year growth forecast on the back of an artificial intelligence (AI)-fuelled export boom.
Elsewhere, two SGX-listed names unveiled portfolio reshuffles of their asset bases — one swapping mature North American assets for its first Singapore property, the other earmarking up to S$9 billion of legacy holdings for recycling.
AI boom powers a sharp upgrade to Singapore’s growth outlook
The Ministry of Trade and Industry (MTI) raised its 2026 growth forecast on 11 August 2026 to a range of 4.5% to 5.5%, well above its earlier projection of 2% to 4%.
The upgrade follows a first half in which gross domestic product (GDP) expanded 6.1% year on year (YoY).
Second-quarter growth was revised up to 5.9% YoY from an advance estimate of 5.7%, easing only slightly from the 6.3% pace of the first quarter of 2026 (1Q2026).
On a quarter-on-quarter seasonally adjusted basis, the economy grew 1.4%.
Manufacturing led the charge with a 12.5% YoY surge, driven by electronics and precision engineering as global demand for AI-related semiconductors fed through to local production.
Wholesale trade rose 8.3% while finance and insurance gained 6.2%.
Food and beverage services was the notable laggard, contracting 1.5%.
MTI flagged three risks: an escalation of conflict in the Middle East, further US tariff actions, and a correction in AI-linked financial markets.
A data centre landlord swaps mature US assets for its first Singapore address
Digital Core REIT (SGX: DCRU) announced on 12 August 2026 that it will divest partial interests in three North American properties to its sponsor, Digital Realty (NYSE: DLR), for proceeds of around US$315.9 million.
The divestments comprise its entire 90% interest in the 371 Gough Road facility in Toronto for C$180 million (US$126.9 million), the North Nash Street co-location facility in Los Angeles for US$78.6 million, and a 39% interest in 8217 Linton Hall Road in Northern Virginia for US$110.4 million.
The REIT retains a 51% majority stake in the last.
Proceeds will fund a 2.5% interest in Digital Loyang 2 for S$87.4 million – its maiden Singapore asset – and an additional 25% of the Osaka Data Centre for ¥17.6 billion (US$108.5 million), lifting that stake to 45%.
The exercise is around 4.1% accretive to distribution per unit (DPU) and cuts aggregate leverage by roughly 290 basis points to 36.3%.
Units closed 5.3% higher at US$0.50.
A property giant lightens its balance sheet with a S$9 billion recycling plan
CapitaLand Investment (SGX: 9CI), or CLI, unveiled a portfolio restructuring on 13 August 2026 that earmarks S$7 billion to S$9 billion of non-core and legacy assets for capital recycling.
The bulk of these sit in China, with the remainder spread across Singapore, India and Europe.
Around 30% to 40% will come from sub-scale private funds, with the rest from excess holdings in CLI-managed REITs and platforms.
The group is targeting a sponsor stake of about 15% across its REITs, down from 20% in CapitaLand Integrated Commercial Trust (SGX: C38U) and 16% in CapitaLand Ascendas REIT (SGX: A17U).
Paring back across roughly S$8 billion of REIT units could free up a couple of billion dollars while improving free float.
For the first half of 2026, net profit rose 14% YoY to S$327 million, though revenue slipped 2% to about S$1.02 billion.
Shares closed at S$2.75.
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