Singapore stocks ended lower on Monday (Jul 20) amid a tech rout in Asian markets. The benchmark lost 0.2% to finish at 5,498.95. Mapletree PanAsia Commercial Trust led the gainers on Singapore’s blue-chip index, rising 0.7% to S$1.35. The worst performer was Hongkong Land, which fell 1.3% to US$7.55.

Wall Street’s indexes finished lower on Monday (Jul 20) while investors looked for moves toward Middle East de-escalation and waited for earnings reports due from major technology companies later in the week. The Dow Jones Industrial Average fell or 0.59%, to 51,839.26, and the S&P 500 lost or 0.19%, to 7,443.28.

SG

CapitaLand Integrated Commercial Trust (CICT) is advancing plans to optimise and selectively reconfigure parts of Paragon, including areas currently occupied by department store Metro. The latest announcement comes as CICT plans to “further strengthen Paragon’s tenant mix.

GDS Global announced that it has secured various new contracts with an aggregate value of around $6 million across different sectors such as public infrastructure, healthcare facilities, education institutions and industrial sectors.

Metro Holdings Limited (Metro) announced that it will progressively transit from operating traditional large-format department stores towards a more flexible retail approach, following the strategic review of its retail business amidst operating challenges faced by Singapore’s retail sector.

US

TSMC is seeing strong, multi-year demand for its AI chips as it invests a further US$100 billion to expand its Arizona facilities, but it needs to address several challenges, such as a shortage of construction workers there, a top executive said.

Oil climbed to the highest level in more than a month and bonds fell as US and Iranian attacks escalated, renewing inflation concerns. Stocks stabilised after a technology-led sell-off rattled markets last week. Brent rose as much as 3.8% to US$91.42 a barrel, the highest level since June.

Netflix Inc. is returning to the US high-grade bond market for the first time since its debut deal two years ago. The streaming company is selling notes due in 2036, with initial price talk at 0.95 percentage point over Treasuries.

Alphabet-owned company, Google is developing a new server chip informally dubbed “Frozen v2” that would incorporate elements of its Gemini model directly into the hardware, in a bid to serve its AI models more efficiently to users, the Information reported on Monday.

Source: SGX Masnet, Bloomberg, Channel NewsAsia, Reuters, CNBC, WSJ, The Business Times, The Edge Singapore, PSR

Magnificent 7 Monthly: Jun 26

Analyst: Phillip Research Team

• Mag-7 pulled back sharply in Jun26, down 8.5% (May26: +5.4%), underperforming the S&P500 (-1.1%) and NASDAQ (-2.8%). There were significant concerns regarding hyperscalers’ high AI spending. This was compounded by uncertainties about a potential Fed rate hike which may raise AI financing costs, following new Fed chair Kevin Warsh’s appointment in May.
• We believe hyperscalers’ AI spending decisions are justified as they are driven by organic demand, not based on speculative supply planning. Excluding deals with Anthropic/OpenAI, combined 1Q26 backlog of MSFT, GOOG, and AMZN increased by 46% YoY to US$873bn. We exclude Anthropic and OpenAI deals (est. US$580bn) from our organic growth assumptions because they are long-term commitments (>5 years) which carry significant execution and funding risks.
• We maintain OVERWEIGHT on the Mag-7. The Mag-7’s pullback in June lowered forward P/E valuations to 38.4x (May26: 39.7x). Its underperformance relative to S&P500 reflects a broader rotation by investors away from mega-caps with high AI spending and toward more attractively valued names in defensive sectors. We consider the US$873bn organic backlog (+46% YoY) as a proxy for short-to-medium term AI demand from enterprises and sovereign nations, justifying hyperscalers’ AI spending decisions.

Netflix Inc. – Softer guidance, but we see no signs of slowing engagement

Recommendation: BUY; TP US$110.00; Last close: US$68.95; Analyst Helena Wang

• 2Q26 revenue was in line with expectations while adj. PATMI underperformed due to the timing of title launches, causing content amortization to be front-loaded into 1H26. Revenue rose 13% YoY, driven by membership growth, higher pricing, and increased ad revenue. 1H26 revenue/adj. PATMI was at 49% and 44% of our FY26e estimates.
• View hours +2% YoY in 1H26 vs. +1.5% YoY in 1H25, despite the competitive impact of the Winter Olympics and the World Cup this year. Ad remains on track to double in FY26. Management has projected 12% YoY growth for 3Q26e.
• We upgrade our recommendation from ACCUMULATE to BUY due to recent stock price movement, with an unchanged target price of US$110. Our estimates remain unchanged, with a WACC of 11.6% and a terminal growth rate of 3.5%. We still see a healthy membership trend, resilient pricing power, expanding advertising monetisation, and industry-leading profitability, with no signs of slowing engagement. As advertising monetisation continues to scale, we believe earnings growth will reaccelerate, creating an attractive entry point for long-term investors (Forward FY26 P/E ratio at 18.8x vs 5-year average of 36.25x).

SG Bonds – Week 30: SGS yields edged higher WoW

Recommendation: REDUCE; TP S$; Last close: S$; Analyst Phillip Research Team

• UST yields edged lower at the front-end last week, while the long end was broadly unchanged. The 2Y yield declined 3bps WoW to 4.18%, while the 10Y and 30Y yields remained stable at 4.56% and 5.06%, respectively. The move was driven by softer-than-expected CPI data, which reduced near-term expectations of Fed rate hikes.
• SGS yields edged higher last week, The 2Y and 5Y increased 6bps WoW to 1.63% and 1.82%, respectively. The 10Y rose 10bps WoW to 2.21% likely reflecting concerns that higher oil prices could lift domestic inflation.
• Softer inflation has reduced the case for a July Fed hike, while resilience of the US economy gives the Fed room to remain on hold. The renewed US–Iran conflict has reintroduced upside risks to the inflation outlook. At current oil prices, the renewed shock is unlikely to trigger a July hike. However, sustained prices near current levels could reverse part of June’s gasoline-driven disinflation and keep the Fed cautious heading into September. Against this backdrop, we expect UST yields to remain volatile with a modest steepening bias. Lower near-term possibility of a rate hike should support the 2Y yield. The 10Y and 30Y yields remain more exposed to higher oil prices, inflation and term-premium pressure, leaving the long end broadly range-bound with a mild upward bias. Domestically, Singapore’s June headline inflation is expected to rise to 2.1% YoY from 1.8% in May, driven mainly by higher private transport and energy costs. An in-line print should keep SGS yields broadly range-bound, while an upside surprise would likely renew upward pressure on the 5Y–10Y.

Wells Fargo & Company – Every segment delivers as loans grow 12%

Recommendation: BUY; TP US$115.00; Last close: US$87.51; Analyst Glenn Thum

• 2Q26 earnings rose 17% YoY to US$6.4bn, slightly above our estimates with 1H26 earnings at 52% of our FY26e forecast. Earnings rose from a) balance sheet growth lifting NII despite NIM compression, b) fee income growing across every segment, and c) expenses rising just 2% as headcount fell 7%, lifting ROTCE to 17.7% (2Q25: 15.2%). A 6% smaller share count amplified EPS growth. WFC plans to raise its 3Q26 dividend by 11% to US$0.50.
• NII rose 5% YoY to US$12.3bn as loans grew 12% and deposits 10%, the first full year of expansion since the asset cap removal. Volume growth more than offset NIM compression. Higher market valuations lifted investment advisory fees 13%. Corporates returned to issuance, driving IB fees up 35%. Venture capital gains added further support. FY26e NII guidance of ~US$50bn and expense guidance of ~US$55.7bn were maintained, with NII guided to strengthen in 2H26.
• Maintain BUY with higher target price of US$115 (prev. US$98) as we raise FY26e earnings by 15% from higher NII, investment advisory, brokerage and investment banking estimates, and lower provisions estimates. Our GGM valuation assumes 2.04x FY26e P/BV and an ROE estimate of 18.1%. WFC remains our top pick among the three banks. Its post-asset cap balance sheet expansion offers a growth runway that JPM and BAC lack. Valuations are cheaper at 10.3x FY26e P/E vs 12x to 14x for peers. NII is guided to strengthen in 2H26, with a planned 11% dividend increase adding support.

Singapore Equities Show Strong Momentum as AI Cycle Drives Growth, Banks and Semiconductors Favoured

https://www.poems.com.sg/market-journal/etf-monthly-outlook-july-2026-market-consolidation/

Thai Beverage Navigates Challenging Consumer Environment with Strategic Adaptation, Maintains BUY Rating at S$0.53

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