Global markets were mixed last week, with modest gains in Singapore’s Straits Times Index (SGX: STI) during earnings season while US markets fell sharply due to weakening economic fundamentals, including slowing business activity.
Stock Highlights of the Week
STI Performance
The STI posted a 0.1% gain on Friday, closing at 3,929.94. This modest gain reflects broader regional strength, with Hong Kong’s Hang Seng surging by 4% and Japan’s Nikkei 225 up by 0.3%.
Sembcorp Industries (SGX: U96)
Urban solutions provider Sembcorp Industries led gains on the STI, rising 3.8% to close at S$5.75. The rally came as investors grew optimistic about its earnings potential in clean energy and urbanisation projects.
DBS Bank (SGX: D05)
The share price of Singapore’s largest lender increased by 1.2%, closing at S$46.62, reflecting investor confidence in the banking sector’s performance with the stabilisation of economic conditions.
Genting Singapore (SGX: G13)
Despite gaining attention with the opening of Illumination’s Minion Land at Universal Studios Singapore and other attractions set to open later this year, Genting Singapore’s stock fell 3.2% to S$0.75. The drop in share price came as the company reported a 34% decline in H2 net profit, driving concerns over the company’s profitability in the short term.
US Markets: Decline Driven by Economic Uncertainty
It was a mixed week for US indices as the short week saw sharp increases early in the week and sharp declines later in the week.
In response to rising economic uncertainty, the Dow Jones Industrial Average lost 1.69% to close at 43,428.02, with the S&P 500 falling 1.71% to 6,013.13, and the Nasdaq Composite dropping 2.2% to 19,524.01.
Influenced by slowing business activity and falling consumer sentiment, the sell-off was further compounded by rising inflation expectation and President Donald Trump’s latest announcements of new tariffs.
Economic-sensitive sectors such as consumer discretionary, technology, and transportation were among the hardest hit this week.
US Stock Highlights
UnitedHealth Group (NYSE: UNH)
Shares of healthcare giant UnitedHealth tumbled 7.2% following reports that the Department of Justice is investigating its Medicare billing practices.
Tesla (NASDAQ: TSLA)
Tesla experienced a sharp 4.7% decline during the week after issuing a recall announcement, denting investor confidence.
Akamai Technologies (NASDAQ: AKAM)
Akamai plunged 21.7% after issuing weak revenue forecasts for the year, reflecting broader challenges within the cybersecurity sector.
Block Inc (NASDAQ: XYZ)
Block shares took a sharp 18% hit on Friday — their worst single-day performance since 2020. This plunge followed fourth-quarter earnings that fell short of market expectations, with earnings per share coming in at 71 cents, lower than the projected 87 cents, and revenue reaching $6.03 billion, below the $6.29 billion forecast.
Hong Kong Market: HSI Extends Winning Streak
The Hang Seng Index (HSI) surged 4% on Friday, closing at 23,477.92, achieving its best single-day performance since October.
This strong momentum pushed the HSI to a 3.8% gain for the week, extending its winning streak to six consecutive weeks — the longest run since January 2023. The rally has elevated the market’s standing as the top-performing major equity market globally. It recouped an impressive US$423 billion in value so far this year.
The rally was driven by robust earnings from tech giant Alibaba, which soared by 15% after surpassing revenue and profit expectations for the December quarter.
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Disclosure: Joanna Sng owns shares of DBS.