SINGAPORE – It might have been a short week due to the National Day public holiday on Aug 10, but it was no less busy.
In a surprise move on Aug 11, the Ministry of Trade and Industry upgraded its 2026 economic growth forecast from between 2 and 4 per cent to 4.5 and 5.5 per cent, reflecting the better-than-expected performance of the Singapore economy in the first half of the year.
The ministry also provided an improved outlook for the rest of 2026, due to the acceleration in global AI-related capital expenditure.
The following day, on Aug 12, JPMorgan Chase raised its targets for Singapore stocks, citing stronger economic growth, an appreciating Singapore dollar and expectations that local shares would close some of their valuation discount to other developed markets, including Hong Kong.
Against that backdrop, JPMorgan wrote that the Straits Times Index (STI) may hit the 7,000 mark over the next 12 months in a bull case scenario, representing a 22 per cent increase from the STI’s close on Aug 11.
The STI has gained more than 23 per cent in 2026, outperforming Hong Kong’s Hang Seng Index.
Genting Singapore was the lead gainer on the index this week, rising 6.4 per cent to 66 cents on Aug 14.
The share price rose despite the resort and casino operator recording a 33.5 per cent fall in profit for its first half ended June 30 to $156.1 million, due to higher depreciation, lower interest income and asset refresh works, the group said on Aug 13.
Graphics card shortage set to drive PC prices higher
A worsening shortage of graphics cards and other key components could make personal computers (PCs) more expensive in the second half of 2026, as manufacturers contend with rising costs and longer delivery times.
PC Partner Group, a Hong Kong-based, Singapore-listed manufacturer of video graphics accelerator (VGA) cards and other computer components, warned on Aug 14 that graphics card availability is likely to deteriorate further in the coming months.
Entry-level graphics cards are expected to face particularly severe shortages, and this could raise average selling prices and make even lower-cost desktop computers more expensive to build, it said.
“The PC market remains highly challenging, with significant supply constraints driving sharp increases in component costs and, in turn, slowing consumer demand,” the company said in its results statement for the first half of 2026.
VGA cards, more commonly known as graphics cards, process and display images on a computer. They contain chips called graphics processing units (GPUs), as well as specialised graphics memory and are essential for gaming, video editing and other graphics-heavy applications.
A shortage or price increase in these chips can affect customers buying graphics cards and raise the cost of pre-built desktops and personal computers.
While no reason was given for the shortage, media reports have attributed it in part to intensifying demand for advanced chips and memory from AI companies to power their infrastructure.
PC Partner, which makes graphics cards powered by GPUs designed by chipmakers such as Nvidia, expects that rising graphics memory chip costs will lead to a “substantial increase” in graphics card costs in the second half of 2026.
Shares of PC Partner closed on Aug 14 at $3.23, up 2.2 per cent.
CDL triples profits, HPL falls into the red
Strong demand for residential property in Singapore helped City Developments Limited (CDL) to almost triple its first-half net profit to $300 million, the developer said on Aug 13.
Net profit rose slightly over 230 per cent to $301.6 million for the first half of the year ended June 30, from $91.2 million a year before. It reported a 61.1 per cent year-on-year jump in revenue to $2.72 billion.
The real estate developer declared an interim dividend of six cents per share, double the amount paid in the first half of 2025.
While many other projects contributed to the strong performance, a major one was Lumina Grand, a fully sold 512-unit executive condominium in Bukit Batok, and high demand for units at luxury development Newport Residences in Anson Road.
CDL shares closed on Aug 14 at $8.12, up 4.4 per cent from Aug 11, when it opened at $7.78.
Property on Sentosa Island proved less lucrative, however, with the average gain from profitable resale transactions shrinking by about 60 per cent, according to data from Singapore-based property portal Mogul.sg.
The data, which covered landed and non-landed homes, showed that almost 65 per cent of resale transactions between May 2023 and June 2026 were unprofitable.
The average loss on these transactions was $1.28 million, while gross gains on profitable resales fell to $655,590 from $1.75 million. The figures exclude stamp duties, property tax, legal fees and agent commissions.
The data was backed by separate analyses done by property consultancy Cushman & Wakefield. Between 2021 and the first half of 2026, Cushman & Wakefield noted only 83 out of 244 non-landed resale transactions were profitable. For landed resale homes, 23 out of 47 transactions were profitable.
Hotel Properties Limited (HPL) on Aug 14 posted a net loss of $39.1 million for the first half ended June 30, compared with a net profit of $11.4 million in the corresponding year-ago period.
Revenue dropped 1.9 per cent to $371.1 million, and gross profit declined 11.4 per cent to $75.4 million.
The hotel ownership and property development company, which owns the Concorde Hotel and Shopping Mall at 100 Orchard Road, noted that the Middle East conflict disrupted air travel and drove up airfares, which weighed on travel demand. Operating costs also rose as higher fuel prices increased utilities, transportation and other related expenses.
Sea Ltd reports better than expected results
Shares of US-listed, Singapore-headquartered Sea Ltd jumped early in the week after it said it expects US$1 billion (S$1.3 billion) in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for its online retail arm Shopee in 2026, compared with its earlier forecast of at least US$880.6 million.
To widen its take rate, the share of merchandise sales earned as revenue, Shopee has increasingly been relying on its advertising business.
Shopee made 70 per cent more from ads in the second quarter, mainly by charging sellers higher fees compared with 2025, chief executive Forrest Li said on a conference call.
Second-quarter revenue for the company as a whole rose 48 per cent to US$7.8 billion, while adjusted EBITDA for the three months through June advanced 11 per cent to US$917 million.
During the period, Shopee’s EBITDA climbed 12 per cent to US$255 million.
Sea shares closed on Aug 14 at US$3.13, down after the week’s high of US$3.36 on Aug 12.
Other market movers
On Aug 13, Singtel reported a 71.6 per cent drop in first-quarter net profit to $818 million from $2.88 billion the previous year.
The group, Singapore’s largest mobile network and fixed-line operators, contextualised the fall to exceptional gains from the sale of a partial stake in Indian telco Airtel and the Intouch-Gulf Energy merger in the same quarter in 2025.
Underlying net profit was up 21 per cent to $831 million from $686 million. While this was improved by the performance of its AI and digital infrastructure businesses as well as a stronger Australian dollar, the group noted it was partially offset by weaker results from Singtel Singapore.
Singtel Singapore’s operating revenue fell 3.1 per cent to $901 million, from $929 million the previous year, due to “continued intense price competition”.
Nevertheless, Singtel shares ended the week at a high of $4.45.
Sembcorp on Aug 13 raised its interim dividend to 11 cents per share for the first half of 2026, from nine cents a year earlier, reflecting its confidence in the company’s outlook and the prospects of Australian energy supplier Alinta Energy, which it acquired in June
Higher dividends were declared despite the energy and urban solutions provider reporting a 25 per cent year on year fall in underlying net profit to $369 million for the first half of 2026.
After including a $155 million one-off transaction cost for the acquisition of Alinta, net profit fell by a larger margin of 72 per cent.
Net profit for Sembcorp’s three business segments – gas and related services, renewables and integrated urban solutions – also declined.
Still, Sembcorp expects stronger earnings for the gas and related services segment in the second half of the year to be supported by the commissioning of a 600-megawatt hydrogen-ready power plant due to be completed by end of the year, and its AI and data centre portfolio.
Sembcorp shares closed the week higher at $5.83 on Aug 14.
Food producer Wilmar International on Aug 12 reported a 9.9 per cent rise in half-year core net profit.
Its core net profit of $820 million was driven by strong performance from its feed and industrial products and food products businesses.
Profit at its feed and industrial products division rose 55 per cent, due to higher volumes and refining margins in its tropical oils business, and stronger feed demand in China.
The company proposed an interim dividend of 5 cents per share, up 1 cent compared to a year ago. Wilmar shares closed on Aug 14 at $3.75, down from the week’s high of $3.98 on Aug 11.
What to look out for next week
Minutes of the Federal Open Market Committee’s (FOMC) last meeting on July 28-29, when it voted to leave US interest rates unchanged, will be released on Aug 20.
It was the fifth straight meeting that the Fed had opted to keep rates steady, although three officials dissented in favour of a rate increase.
A bullish tone could provide a boost to the greenback while a dovish stance is seen as USD-negative.
