To The Moon

Two-thirds of the Singapore market reported semi-annual results in August, making earnings season the primary focus for investors. Beyond headline profit growth, investors assessed the resilience of companies to a mixed macro environment and the efficiency of their business operations at the micro level.

Investors also focused on a more hawkish US rates environment, with rising Treasury yields and renewed expectations of higher-for-longer rates weighing on equity valuations. $NVIDIA(NVDA)$ 's results reinforced confidence in the durability of AI-related investment demand, while investors monitored further policy support measures from Beijing as Chinese growth concerns persisted, alongside developments in semiconductor trade restrictions and global supply chains.

The month reinforced that favourable industry, and market tailwinds were only part of the equation. While AI-driven productivity, investment-led growth, infrastructure, trade realignment and Singapore's role as a regional hub remained important drivers, reporting season showed that shareholder outcomes were also determined by execution, including capital management, operational efficiency, growth initiatives and the ability to convert opportunities into sustainable earnings and returns. This was evident in the varying market reactions to results, with investors often rewarding execution and value creation ahead of thematic exposure alone.

$Singtel(Z74.SI)$ ’s Investor Day highlighted measurable productivity gains from its AI-at-scale initiatives, including fewer internal technology support requests, lower effort required for software releases, reduced field-service visits and more than 60% AI-led care resolution. Management indicated these initiatives are on track to contribute 5% to 10% of FY27 EBIT.

STI Adds to Strong July Gains

The $Straits Times Index(STI.SI)$ ended August up 2.3% at 5,755.36, with dividend distributions boosting the total return to 3.4%. The FTSE ST Industrials saw similar momentum, gaining 2.6% with distributions boosting the total return to 3.2%.

Following its strong 8.8% gains in July, the STI reached a record high of 5,774.21 on 11 August amid a reporting season that generally aligned with earnings expectations. Bloomberg consensus target prices for the index increased from 5,884 at the end of July to 6,159 by the end of August, indicating that analysts were raising valuation expectations alongside the market's advance. With indicative STI earnings growth remaining in the low double digits, investor attention has increasingly shifted towards identifying the companies best positioned to sustain earnings momentum and create shareholder value.

STI August Leader: $YZJ Shipbldg SGD(BS6.SI)$

Yangzijiang Shipbuilding led STI constituents in August with a 22.5% rally. This occurred alongside record 1H26 net profit earnings, continued order-book growth and stronger analyst recognition. Revenue increased 36.2% YoY to US$1.75 billion while net profit attributable to shareholders rose 28.4% to RMB5.4 billion.

The group's outstanding order book stood at US$22.4 billion across 256 vessels at the end of July, providing earnings visibility through 2030. Bloomberg consensus target prices rose from S$4.55 at the end of July to S$5.16 by the end of August, while the proportion of buy recommendations increased from 83% to 92%. Based on two 5-session snapshots, the group's average bid-ask spread narrowed to 21.3 bps from 26.6 bps six months earlier.

Bank DLC Activity Strengthens After 2Q26 Results

The STI banks, $DBS(D05.SI)$ $OCBC Bank(O39.SI)$ $UOB(U11.SI)$ remained a key focus in August following their 2Q26 results and subsequent target price upgrades. Combined non-interest income reached a record S$5.72 billion, supported by wealth management, treasury customer sales and fee-based activities. The MAS Monthly Statistical Bulletin updated on 31 August also revealed preliminary resident loans growth was up 10% YoY and +0.8% MoM in July. 

Based on two 5-session snapshots, DBS's average bid-ask spread narrowed to 1.8 bps from 2.2 bps six months earlier, while OCBC's narrowed to 3.7 bps from 5.1 bps. UOB's average spread was broadly unchanged at 3.2 bps. 

The earnings releases also coincided with heightened trading activity in SGX-listed Daily Leverage Certificates (DLCs) linked to DBS, OCBC and UOB. Retail demand for DLCs linked to the Singapore banks strengthened in August. DLC average daily turnover (ADT) reached S$625,000, representing a 36% increase from July prior to the final session of the month. DLCs tracking DBS and OCBC were the key drivers of this growth, recording ADTs of S$322,000 and S$239,000, up 50% and 54% MoM, respectively. August also marked a milestone for OCBC-linked DLCs, with monthly turnover exceeding S$1 million for the first time.

With DBS, OCBC and UOB accounting for more than half of the STI’s weighting, DLCs linked to the three banks provide investors with a capital-efficient means of expressing short-term bullish or bearish views on both the banking sector and the STI. 

Institutional Flows Rotated Towards Developers

Real Estate (ex-REITs) recorded the strongest improvement in institutional flows during August, with net inflows of S$124.4 million. $HongkongLand USD(H78.SI)$ (+S$47.9 million), $CityDev(C09.SI)$ (+S$52.2 million) and $UOL(U14.SI)$ (+S$18.4 million) accounted for approximately 95% of the sector's improvement.

The three developers reported resilient 1H26 operating performance, supported by strong balance sheets, active development pipelines and continued capital returns. Hongkong Land highlighted progress on its Strategic Vision 2035 and capital recycling programme, City Developments maintained a diversified Singapore launch pipeline and robust liquidity position, while UOL reported healthy income visibility from ongoing projects alongside committed occupancy above 96% across its Singapore commercial portfolio.

In 2Q26, Singapore's real estate sector expanded 4.6% from 2Q25, following the 3.6% growth recorded in the previous quarter. Other Real Estate (ex-REITs) stocks recording positive institutional flow improvements during August included $Centurion(OU8.SI)$ (+S$5.1 million), $Hiap Hoe(5JK.SI)$ (+S$2.4 million), $SingaporeLandGrp(U06.SI)$ (+S$1.7 million) and $Yanlord Land(Z25.SI)$ (+S$0.6 million).

The rotation has followed a prolonged period of strong bank performance, which had increased Financial Services' representation in both the STI and many investment portfolios. At the same time, several large-cap developers continued to trade at significant discounts to underlying asset values despite reporting resilient operating performance. Hongkong Land, City Developments and UOL continued to trade below book value at approximately 0.56x, 0.78x and 0.65x price-to-book respectively at the end of August. 

Institutional Flow as % of Sector Market Cap

The YTD Institutional flows remained concentrated in Industrials and Technology, which retained the largest positive cumulative 8-month net flows at the end of August of approximately S$960 million and S$310 million, respectively. In contrast, Financial Services, REITs and Telecommunications remained the largest cumulative outflow sectors at approximately S$1.42 billion, S$1.22 billion and S$489 million, respectively. Overall, cumulative institutional net outflows across the market increased from approximately S$1.3 billion at the end of July to approximately S$1.9 billion at the end of August.

Frencken Raises Capital for Capacity Expansion

$Frencken(E28.SI)$ announced a S$100 million placement in August, with approximately 90% of the net proceeds earmarked for business expansion initiatives, manufacturing capacity and strategic investments, while the balance will support working capital requirements and the repayment of bank borrowings. The placement ranks as the second largest non-REIT equity fundraising exercises by an SGX-listed company (i.e. ex-REITs) this year and follows management's reaffirmation that FY26 revenue and profit are expected to exceed FY25 levels. The group also maintained its ambition of achieving S$1 billion in annual revenue by 2028 while continuing to invest in a new Singapore facility that will significantly expand cleanroom assembly capacity.

The placement also aligned with a trend emerging in Singapore's manufacturing sector. July PMI data showed new orders expanding faster than output while inventories declined, suggesting demand was running ahead of production in parts of the economy. When order books expand faster than production, companies typically need to invest ahead of revenue realisation. Frencken's planned investment in manufacturing capacity, strategic initiatives and working capital reflects that dynamic across semiconductor equipment, industrial automation, medical technology and automotive markets. Based on two 5-session snapshots, Frencken's average bid-ask spread narrowed to 42 bps at end-August from 53 bps six months earlier.

AEM Expands Investor Disclosure

$AEM SGD(AWX.SI)$ ’ 1H26 results and investor update broadened disclosure across guidance, customer segments and financial metrics. The group added FY26 revenue and EPS guidance, an interim dividend and an AMPS backlog exceeding S$400 million, while expanding disclosure across the CPU/GPU ecosystem, hyperscalers, AI fabless companies, foundries and OSATs. The update also introduced disclosure on net cash, free cash flow, capex, working capital and backlog, providing investors with greater visibility into growth drivers, execution priorities and capital returns. The shares have attracted approximately S$309 million of cumulative institutional inflows this year and risen more than 400% YTD. Based on two 5-session snapshots, AEM's average bid-ask spread narrowed to 13.4 bps at end-August from 50.3 bps six months earlier.

Sector Moves: Plantation Stocks

Plantation stocks were among August's strongest performers, with $Bumitama Agri(P8Z.SI)$ and $First Resources(EB5.SI)$ recording symmetrical 37% gains over the month. $Kencana Agri(BNE.SI)$ also posted 34% gains. 

Crude palm oil prices climbed above RM5,000 per tonne during August. The strong share-price performances coincided with the release of 1H26 results that showed double-digit earnings growth, supported by higher production volumes, resilient margins and strong cash generation, while Bumitama Agri and First Resources also announced higher interim dividends. 

Based on two 5-session snapshots, Bumitama Agri's average bid-ask spread narrowed to 51 bps from 78 bps six months earlier, while Indofood Agri's narrowed to 156 bps from 175 bps and Golden Agri-Resources' narrowed to 159 bps from 170 bps. Kencana Agri recorded the largest improvement, with its average spread narrowing to 399 bps from 458 bps.

August Outlier: Medi Lifestyle

$MediLifestyle(Z4D.SI)$ 's 37% gain in August, the strongest monthly performance across the 150 most traded stocks this year, illustrated investor attention on corporate actions despite weak underlying earnings. 

The Catalist-listed stock reported a 92.5% decline in 1H26 revenue from continuing operations to RM0.30 million following the cessation of its healthcare operations, while loss before tax widened 9.7% to RM1.67 million and the group remained in a capital deficiency position. 

However, investor attention centred on the proposed S$8.75 million placement, which aims to strengthen the group's funding position, support working capital requirements and fund business development initiatives, including the proposed acquisition of a 60% stake in EM2AI, an AI-enabled dental technology platform. Based on two 5-session snapshots, Medi Lifestyle's average bid-ask spread narrowed to 143.6 bps at end-August from 929.7 bps six months earlier.

August Outlier: Addvalue Technologies

$Addvalue Tech(A31.SI)$ was among the strongest-performing liquid technology stock in August, gaining 28.7%. During the month, the company announced a partnership with Viasat to deliver its Inter-Satellite Data Relay Service (IDRS) capability to US government customers through Viasat's HaloNet offering, while also providing an update on the proposed Nasdaq or NYSE spin-off listing of its IDRS business. The developments combined commercial expansion with a potential value-unlock catalyst, supporting continued market recognition of the company's satellite communications platform.