PSR Weekly Market Outlook 5 min Summary
Source: https://youtu.be/KDUPvikVp5Y
Date: 09/02/2026
Technology and Global Stocks
- AMD: The company’s fourth-quarter revenue met expectations, driven by a 39% year-on-year growth in data center revenue. AMD is successfully gaining market share from Intel in the client PC segment, and management guided for annual data center revenue growth of over 60% in the next three to five years.
- Alphabet (Google): Results exceeded expectations with an 18% revenue increase, led by robust search and cloud performance. Google Cloud revenue grew 48% year-on-year, its fastest growth in five years. However, the company guided for significantly higher capital expenditure ($175B–$185B) in FY26 to support AI model development, which may pressure short-term valuations.
- Disney: Strong IP monetization remains a core strength, with hits like Zootopia 2 and Avatar feeding into streaming and park businesses. The streaming business is showing improving margins and sustained profitability, with a target of 10% margins by FY26.
- Software Sector Trends: There is significant market concern that AI agents could disrupt the traditional Software-as-a-Service (SaaS) model by replacing applications with outcome-based pricing rather than seat-based licensing.
Singapore Market and Real Estate (REITs)
- Keppel: Results were in line with expectations, highlighted by a special dividend announcement tied to their asset monetization target of $13.5 billion. The infrastructure segment is growing strongly through sustainable solutions and new power plant projects.
- CapitaLand Integrated Commercial Trust (CICT): Performance was anchored by its 95% Singapore portfolio, with high occupancy in retail (98.7%) and office (95.7%) sectors. Management plans organic growth through several Asset Enhancement Initiatives (AEIs).
- OUE REIT: DPU beat expectations due to declining financing costs and strong Grade A office performance. The REIT is acquiring a 20% stake in Salesforce Tower Sydney, which is viewed favorably due to its high yield and pipeline potential.
- First REIT: While operating performance in local currencies remained stable, results were negatively impacted by the depreciation of the Indonesian Rupiah and Japanese Yen against the Singapore Dollar.
- SGX: Core operating revenue grew in equities and fixed income, but treasury income fell 14% due to declining interest rates.
Singapore Banks and Macro Outlook
- DBS: The bank is guiding for 2026 earnings to be slightly below 2025 levels, with a focus on wealth management fees to buffer declining net interest income. DBS maintains a significant management overlay of $2.4 billion that could potentially be written back to boost future earnings.
- Macro Environment: Singapore's manufacturing activity is picking up, particularly in semiconductors, while visitor arrivals are stabilizing. In the US, labor demand appears to be softening as job openings decline.
Technical Analysis
- S&P 500: Expected to continue sideways consolidation while holding short-term support levels.
- Bitcoin ETF & Software ETF (IGV): Both saw sharp declines recently, with IGV breaking key support levels due to sector-specific concerns.
Q&A
Technology and Global Stocks
- AMD: AMD is gaining CPU market share from Intel (reaching the high 20% range) primarily due to its Ryzen PC CPUs offering better memory performance and efficiency for gamers. While Intel remains superior in parallel workloads like video editing due to more cores/threads, AMD has benefited from a recovery in the gaming sector.
- Alphabet (Google): Analysts do not currently see Gemini AI cannibalizing traditional search revenue; instead, it is viewed as a complementary tool that has boosted search engagement, with daily AI queries doubling since its launch.
- Reddit: Despite beating earnings, the share price dropped due to a "pricey" valuation, slower-than-expected US user growth, and a lack of detail regarding their data licensing segment.
- Qualcomm: The stock faced pressure after guiding for a 13–15% drop in handset revenue, as Chinese smartphone manufacturers reduced inventory in response to high memory prices.
- AppLovin: Growth is expected to be driven by its Axon AI engine and expansion into e-commerce verticals beyond its core gaming business.
Singapore Financials (DBS, OCBC, UOB, SGX)
- DBS: The minor share price pullback followed a Q4 result impacted by a large non-performing loan (NPL) in Hong Kong real estate. Management is guiding for flat-to-lower 2026 earnings but maintains a $2.4 billion management overlay—a reserve separate from general provisions that can be written back to boost the bottom line during weaker quarters.
- OCBC & UOB: UOB’s fee income, specifically in wealth management, has been weaker compared to its peers. OCBC is seen as a strong competitor in wealth management because it captures revenue across different geographies.
- SGX: The treasury income decline (down 14%) is driven by falling interest rates, as the $100 billion in collateral balances they manage must be kept in highly secure, low-yield products.
Conglomerates and Industrial Stocks
- Keppel Ltd: Investors are focused on the company’s special dividend visibility, which is tied to an ambitious $13.5 billion asset monetization target. Analysts value Keppel using a sum-of-the-parts method (similar to Brookfield) rather than historical PE because current earnings include losses from non-core businesses slated for divestment.
- Singtel: The recent STT GDC deal is considered a "post-2028 story". While Singtel will recognize a 20% share of STT GDC's current losses, the long-term value lies in a massive data center pipeline that could triple their current capacity.
- Sembcorp Industries: The stock faces headwinds from normalizing electricity spreads (dropping from pandemic highs of $70 to roughly $30–$40), which may discourage investors from rushing back in until the India renewables listing provides a new catalyst.
- SIA Engineering: Management is bullish on the aviation MRO sector, specifically targeting the Indian market due to a global labor shortage and the availability of a talented, English-speaking workforce.
Singapore REITs
- OUE REIT: The 20% acquisition of Salesforce Tower Sydney is viewed favorably because it offers higher yields (5.5–6%) than Singapore Grade A offices and provides "preemption rights," allowing the REIT to acquire more of the building before it hits the open market.
- Keppel DC REIT: The transition of its asset manager is expected to have minimal impact as the entire existing management team is likely to move to the new entity, maintaining operational continuity.
- Digital Core REIT: The REIT has successfully signed a new cloud tenant to backfill space, with full income contribution expected by 2027.
Consumer and Retail
- Sheng Siong: While revenue growth remains resilient due to store footprint expansion, analysts expressed concern over its high valuation (near 30x PE).
- Thai Beverage: Optimism stems from collapsing raw material costs (sugar, wheat, and packaging) and potential government stimulus in Thailand, which should support margins despite weaker top-line growth.
