Last week, global markets experienced mixed results as investor sentiment shifted from early optimism to cautious realism. In Singapore, the Straits Times Index (SGX: ^STI) saw a slight decline, while Wall Street posted a modest rally amid fluctuating economic signals and strong corporate earnings.
Singapore Stock Highlights of the Week
STI Performance
Singapore’s benchmark STI slid by 0.1%, closing at 3,877.50 on Friday. Although the index hit record highs earlier in the week, selling pressure in key sectors eventually dampened the initial enthusiasm.
Singapore Exchange (SGX: S68)
The Singapore Exchange emerged as the week’s biggest decliner, dropping 5.8% to S$12.69. The decline came after the exchange traded ex-dividend.
Hongkong Land (SGX: H78)
Hongkong Land turned the tide by rising 4.1% to US$4.35, making it the top gainer on the STI. Investors remain optimistic about the property developer’s expansion plans and long-term prospects.
Seatrium (SGX: 5E2)
With 51.9 million shares traded on Friday, Seatrium was the most actively traded stock, climbing 1.2% to S$2.58. Its performance reflects growing investor interest in Singapore’s offshore and marine industries.
iFast Corporation (SGX: AIY)
iFast Corporation reported on Wednesday that it posted an impressive 46.3% increase in Q4 net profit to S$19.3 million, supported by record-high assets under administration of S$25 billion. The group’s wealth management platform and turnaround of its banking arm, iFast Global Bank (iGB), played a pivotal role in these results. Notably, iGB achieved profitability for the first time. iFast’s share price ended the week at S$7.890 on Friday, up 0.25%.
US Markets: Mixed Results Amid Cautious Optimism
In the United States, market sentiment was mixed as investors juggled optimistic gains with caution over recent economic data. The S&P 500 recorded a modest weekly gain of 1.5%, while the Nasdaq advanced 2.6% thanks to robust performances in the tech sector.
The Dow Jones managed a smaller increase of 0.5%. Investor caution was heightened by data indicating a 0.9% decline in US retail sales for January 2025—a reversal from the previous month’s revised increase of 0.7%.
Meanwhile, falling Treasury yields and concerns over potential new tariffs fueled uncertainty, prompting traders to consider the possibility of interest rate cuts later in the year.
US Stock Highlights
Nvidia (NASDAQ: NVDA)
Nvidia’s stock surged 2.6%, contributing to the Nasdaq’s positive close. The company’s strong position in the AI and semiconductor industries continues to attract investor confidence.
Airbnb (NASDAQ: ABNB)
Airbnb jumped 14% after posting higher-than-expected quarterly revenue, showcasing its resilience and adaptability in the competitive travel industry.
DaVita (NYSE: DVA)
By contrast, DaVita underperformed, falling 11% after missing fourth-quarter profit estimates. Further dampening the stock’s performance was news that Berkshire Hathaway had reduced its stake in the company, signalling diminishing investor confidence.
Europe Markets Shine with Record-Setting Gains
European markets maintained a strong performance over the past eight weeks. Despite a 0.2% dip on Friday, the pan-European Stoxx 600 closed at record levels, marking its longest winning streak since Q1 2024. On an annual basis, the index has surged over 8%, outperforming major US indices.
This robust performance was credited to better-than-expected earnings from key sectors like financials, technology, and consumer goods. Strong corporate results have bolstered investor confidence across the region.
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Disclosure: Joanna Sng owns shares of SGX, iFast, and Nvidia.
