Market Insights
SINGAPORE – Shares of Singapore’s three banks climbed to record highs this week, buoyed by expectations that interest rates will stay higher for longer and growing investor optimism ahead of the banks’ second-quarter earnings reports in early August.
DBS punched through the $70 mark for the first time on July 9 and ended the week up 5.7 per cent at $70.45. OCBC broke through $27 and closed 8.46 per cent higher at $27.43, while UOB surpassed $44 and finished the week up 10.12 per cent at $44.38.
Analysts said they expect strong wealth management momentum and attractive dividend yields to continue underpinning bank share prices.
Investor interest could also receive a further boost after the Singapore Exchange said on July 1 that it would cut the standard board-lot size from 100 units to 10 units for stocks priced between $10 and $100, including the three local banks.
Meanwhile, shares of Singapore Airlines briefly retreated after renewed US-Iran tensions triggered swings in oil prices, but still finished the week up 1.31 per cent at $7.71.
But the pullback in the national carrier as well as other oil-sensitive counters did little to dent improving sentiment in the broader market, with the Straits Times Index (STI) ending the week 4.29 per cent higher at 5469.29.
“This selective reaction stands in contrast to episodes in the previous months when geopolitical tensions weighed more broadly on the STI and regional peers,” said James Ooi, market strategist at Tiger Brokers.
“Investors have likely grown fatigued and desensitised to the repeated cycles of escalation and de-escalation, and are now focusing more on local developments and underlying company fundamentals rather than recurring geopolitical headlines,” he added.
Gold prices edge down
Gold prices recently rebounded from lows near US$4,000 an ounce compared to its January peak above US$5,000, after a weaker-than-expected US jobs report for the month of June eased expectations of further Federal Reserve rate hikes.
Lower interest rate expectations tend to support gold because the precious metal does not pay interest, making it relatively more attractive when yields on competing assets are expected to remain lower.
Still, gold lost some ground through the week as inflation fears grew after President Donald Trump said that the ceasefire between the US and Iran is over. The precious metal last traded at around US$4,100 per ounce on July 9.
James Steel, chief precious metals analyst at HSBC, said gold prices are likely to be driven less by the conflict between Iran and Israel going forward, and more by longer-term factors such as investor demand for protection against economic uncertainty and portfolio diversification.
Selling by investors, particularly through gold exchange-traded funds (ETFs), could also ease and attract buyers back to the market.
“Rising fiscal deficits globally and their impact on sovereign debt markets could continue to support higher gold prices,” he added.
S’pore investors remain bullish on AI stocks
A survey by trading platform eToro found that 51 per cent of Singapore investors expect AI stock prices to rise in 2026, higher than the global average of 44 per cent.
While the figure has moderated from 64 per cent in the third quarter of 2025 and 55 per cent in the fourth quarter, it marks a recovery from the first quarter of 2026, when it fell to a low of 49 per cent.
The survey, which polled 1,000 Singapore-based retail investors in May, also found that 26 per cent of investors here believe the Republic is best positioned to lead the global AI race, placing it third behind the US and China, which garnered 56 per cent and 52 per cent of votes respectively.
“More and more leading players in the AI space are planting their flags here, treating the city-state as an operating base,” said eToro market analyst Zavier Wong.
“Just take OpenAI’s commitment of US$300 million last month… The talent is here, the capital access is here, and sitting between the two dominant AI powers – the US and China – gives Singapore a role hard to replicate anywhere else in the region,” he added.
In a July 7 report, JP Morgan analysts noted that Singapore remains one of the world’s most expensive data centre markets, with rents of US$330 to US$475 per kilowatt a month – more than double those in mature markets such as Sydney and Northern Virginia.
They added that near-full occupancy and higher rents on lease renewals reflect strong demand and limited supply, giving operators pricing power.
With construction costs among the highest in the Asia-Pacific at about US$12 million per megawatt, the analysts said redeveloping older facilities, such as Keppel DC REIT’s Singapore 1 data centre, could still generate attractive returns of 7 to 8 per cent.
Other market movers
Shares of Foundation Healthcare fell 3.92 per cent to end the week at 74 cents, just below their initial public offering (IPO) price of 76 cents.
The Temasek-backed healthcare group made its Mainboard debut on July 8 after raising gross proceeds of $242 million.
Its Singapore public offer of 87 million shares was around 9.4 times subscribed with over 3,800 valid applications. Overall, the offering of 162.6 million shares was around 3.8 times subscribed.
In total, the IPO raised gross proceeds of $242 million, including commitments from 10 cornerstone investors. They include Amova Asset Management Asia, Lion Global Investors, Manulife Investment Management, and UBS AG, which acted through its Singapore branch.
Meanwhile, the shares of another recently-listed firm, sports events management company Kin Global, fell 9.55 per cent over the week to close at 18 cents on July 10. The stock is down more than 14 per cent for the year and over 21 per cent below its initial public offering price of 23 cents in April.
Kin Global said on July 9 that it had made commercial and operational progress on the inaugural PPA Asia 500 Leapmotor Singapore Open.
The event marks the first year of Kin Global’s multi-year partnership with Professional Pickleball Association Asia and forms part of the group’s strategy to expand its portfolio of sports intellectual property, events and experiences.
Shares of newly listed JustCo ended the week 1.75per cent higher at 58 cents. The shares listed on May 22 at 94 cents.
JustCo will be setting up shop at the former Taste Orchard mall as it debuts a new concept combining its core co-working services with co-living and retail offerings.
The Singapore-founded co-working and flexible workspace operator will launch JustCo Place from September, which it describes as a “live-work-play” lifestyle hub.
It comprises five levels of co-working and retail spaces, and another five levels of co-living apartments. Levels three and four will be fully occupied by Deloitte Singapore when the consulting firm moves in in September.
JustCo’s co-working centre will take up approximately 150,000 sq ft of space from basement one to level four – previously occupied by food-focused mall Taste Orchard, run by supermarket chain Hao Mart. This space has been vacant since January 2026 after OG terminated Hao Mart’s lease late in 2025.
What to look out for next week
The Republic’s advance gross domestic product estimates for the second quarter of 2026 are scheduled to be released on July 14.
All eyes will be on the Trump administration after US officials said it will engage in “technical talks” with Iran and remains committed to finding a diplomatic solution to the conflict.
This comes after the US military launched strikes on Iran in retaliation for attacks on three commercial vessels transiting the Strait of Hormuz.
The market could also be volatile with US inflation data for the month of June due on July 14.
