Stock Market Today

The Singapore market closed at 5,415.14, down 0.4%.

In the US, the S&P fell 1.2% to 7,663.43, the Dow Jones was little changed at 52,867.98, and the NASDAQ declined 2.6% to 26,008.86.

Trade of The Day

S&P 500 forward returns following mid-term elections – Generally positive

Analyst: Zane Aw

• The S&P 500 generally sees gains in the immediate 1 day and 1 week following the conclusion of the mid-term elections. Under a Republican president, the 1-day and 1-week returns average 0.6% and 0.4% respectively while it was 0.1% and 1.2% respectively under a Democratic president.
• Status-quo mid-term results tend to trigger an immediate 1-day gain of 0.6% on average, whereas changes in congressional control often result in a muted performance averaging -0.1%. Years with a status-quo Congress consistently outperform those with changes in control in the medium to longer-term, delivering higher average returns at the 3-month, 6-month, and 12-month marks.
• To conclude, the S&P 500 forward returns generally show a persistent upward trajectory from the 1-day to 12-months after the conclusion of the mid-term elections. Forward returns across both 6-month and 12-month periods are 100% positive across all 17 historical cycles analysed regardless of the party of the incumbent President or makeup of Congress.

Trades Initiated in Past Week

SG

Suntec Reit posted Q3 DPU of S$0.02017, up 13.4% year-on-year, as distributable income rose 14.3% to S$59.9mn on stronger Singapore office and retail performance with committed office occupancy at 99.6%.

Frasers Centrepoint Trust posted H2 DPU of S$0.06214, up 2.6% from S$0.06059 a year ago, achieving a new full-year record payout.

SGX Group signed an agreement with the Philippine Stock Exchange to explore offerings including depository receipts, ETFs and derivatives, as its Singapore Depository Receipts programme for US stocks struggles to attract investor interest.

CapitaLand Investment appointed banking veteran Hsieh Fu Hua as independent chairman effective Jan 1, 2027, succeeding Miguel Ko who retires Dec 31, while Temasek Singapore president Png Chin Yee joins the board as a non-executive director from Jan 1.

Koh Brothers Eco Engineering will transfer its listing from SGX Catalist to the mainboard on Oct 29, having fulfilled all conditions after shareholder approval at an EGM on Aug 18.

TSH Resources disclosed 274 hot spots detected within its Indonesian estate boundaries since Jan 1 following SGX RegCo queries, saying all fires occurred in community enclaves outside its operational areas.

XMH Holdings said Indonesia’s tax authority rejected its subsidiary PT XMH’s objection to a S$10.2mn tax bill for FY2024; the company also received a S$12.5mn tax assessment for FY2025 and will appeal both.

US

Spotify Technology S.A. reported Q3 2026 results with gross margin expanding 14b.p year-over-year, advertising revenue growth accelerating to 9%, and repurchased 2.2 mn shares for US$1.1bn to neutralize employee equity dilution.

Micron Technology is introducing a quarterly profit-linked bonus program for global employees, with awards split 50-50 between cash and stock, while raising Taiwan retirement contributions from 8% to 10%.

Tesla shares fell 3.1% even though the electric car maker unexpectedly posted positive free cash flow in the quarter and cut its 2026 capital spending plans. The fall came after-hours after lowering its end-of-decade annual sales target to 5mn units from a prior 20mn goal; Q3 net income dropped 4% to US$1.7bn on flat revenue, while capex guidance was cut to US$20bn from US$25bn.

Meta Platforms shares fell 7% after results showed its first cash outflow in more than a decade due to AI expenditures and the company announced plans to issue non-voting shares in a two-for-one split. It also reported Q3 revenue of US$64.60bn, up 26% YoY, but free cash flow turned negative at -US$2.12bn as it raised full-year capex guidance to US$135 bn – US$145bn; the company also announced a new nonvoting Class C stock.

Airbnb partnered with American Express to add more than 1mn listings to Amex Travel, with Platinum cardholders earning five times membership rewards on prepaid bookings and access to a new US$250 statement credit on Airbnb Experiences.

Apple began sales of its first folding phone, the US$1,999 iPhone Duo, on Oct 23 after pre-orders on Oct 16 saw delivery dates slip to late January due to demand outpacing supply.

Procter & Gamble rose 5.6% after beating analyst estimates, though it warned rising cost pressures would take an increasing bite out of profit. It now expects higher commodity costs to reduce fiscal 2027 profit by about US$1.4bn, up from US$1bn, while Q1 net sales rose 4% to US$23.28bn beating estimates of US$22.80bn.

Western Digital shares fell about 8% in after-hours trading after management flagged rising input costs and higher capex despite 1Q27 adjusted EPS of US$4.64 beating estimates and revenue climbing 55% YoY to US$4.38bn; the company raised its quarterly dividend 17% to US$0.175 per share.

PepsiCo renewed its partnership with Taco Bell through 2036, securing the beverage supply contract days after sister chain KFC switched to Coca-Cola in the US.

eBay will cut 9% of its workforce, affecting around 1,000 employees, its second round of layoffs this year after eliminating 800 jobs in February; the company reports 3Q results on Oct 28.

Etsy said it is banning AI-generated recipes, patterns and instructions from its marketplace, citing user confusion around AI content as a top-three barrier to shopping more often on the platform.

Knowles reported 3Q earnings of US$0.38 per share, beating estimates of US$0.36, on revenue of US$184mn versus year-ago revenue of US$152.9mn.

SS&C Technologies posted 3Q revenue of US$1.69bn, up 7.7% YoY and in line with estimates, with adjusted EPS of US$1.78 beating by 0.7%, but shares fell 6% after Q4 revenue guidance of US$1.72bn came in 1.5% below expectations.

Las Vegas Sands reported earnings that missed expectations for revenue and profit, hurt by weakness in high-end segments in both Macao and Singapore.

Delek U.S. Holdings will see capacity expanded at its Texas refinery under the Defense Production Act, Vice President JD Vance said last week.

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

Netflix Inc. – Viewing time a big concern

Recommendation: ACCUMULATE; TP US$100.00; Last close: US$65.04; Analyst Helena Wang

• 3Q26 revenue was in line with expectations, while adj. PATMI slightly outperformed due to the timing of operating expenses. Revenue rose 12% YoY, driven by membership growth, higher pricing, and increased ad revenue. 9M26 revenue/adj. PATMI was at 74% and 75% of our FY26e estimates.
• Weakening engagement is now a main concern for NFLX. 4Q26e revenue growth is guided at 11.5% YoY, implying four consecutive quarters of decelerating growth. Meanwhile, FY26e advertising revenue guidance was lowered by 10%, from US$3bn to US$2.7bn, due to a slower-than-expected rollout.
• Maintain BUY with a lower target price of US$100 (prev. US$110) as we lower FY26e revenue by 1% and terminal growth from 3.5% to 3%, respectively, due to slower growth. We still like NFLX’s strong pricing power, advertising potential and industry-leading profitability, but weakening engagement and decelerating growth weigh on the near term. With shares under pressure this year, valuation is much more attractive now, with FY26 forward adj. P/E at 21.4x compared to previously 33.3x.

OUE REIT – Office in transition, hotels outperform

Recommendation: BUY; TP S$0.43; Last close: S$0.3300; Analyst Hashim Osman

• 3Q26 gross revenue/NPI rose 3.0%/4.6% YoY to S$72.6mn/S$59.6mn, forming 76%/78% of our FY26e forecast. The results were driven by strong hospitality segment performance.
• The hospitality segment revenue/NPI rose 12.6% YoY to S$30.3mn/S$27.6mn. Segment RevPAR increased 8.2% YoY to S$302 (Hilton Orchard up 7.5%, Crowne Plaza up 10%). This reflects strong corporate demand for Hilton Orchard, and healthy transient travel demand.
• We maintain BUY with lower DDM-based TP of S$0.43 (prev. S$0.45). We raise our cost of equity by 25 bps to reflect a higher interest rate environment. With Australian core CPI elevated (up 4% YoY), we believe an RBA rate hike is likely. Additional debt taken for a larger stake in Salesforce Tower may push blended interest costs higher. OUE REIT is trading at a FY26e dividend yield of 7.5%, and a P/NAV of 0.69x. We expect upside from the accretive redeployment of divestment proceeds into Salesforce Tower, and successful backfilling of the c. 100,000sq ft Deloitte is returning at OUE Downtown in Dec26.

Singapore REITs Monthly – Navigating renewed interest rate headwinds

Analyst: Darren Chan

• The S-REITs Index declined 5.7% in September, extending its 4% decline in August. IREIT Global (IREIT SP, non-rated) was the best performer, rising 9.8% (-37.9% YTD) following the signing of a 25-year lease with BVG at its Berlin asset, which will increase occupancy from c.25% to c.75%. Manulife US REIT (MUST SP, non-rated) was the worst performer, declining 23.3% (-53.5% YTD) amid concerns over US interest rates. The Singapore commercial sub-sector was the best-performing sub-sector, declining 2.9%, while Singapore diversified REITs were the weakest, falling 6.2%.
• We expect 3Q26 results and business updates to reflect resilient operating performance and positive rental reversions. We also expect YoY interest cost savings as S-REITs refinance debt at lower rates, although rising interest rates could temper these savings. Overall, we maintain our FY26e DPU growth forecast of 3% for S-REITs under our coverage (ex. Prime US REIT).
• We downgrade S-REITs to NEUTRAL from OVERWEIGHT as rising interest rates pose a near-term headwind to valuations and sector sentiment, despite resilient operating fundamentals. Positive rental reversions and steady earnings growth continue to support distributions, while c.73% of sector debt is fixed/hedged on average, helping to cushion the impact of higher rates. However, sustained interest rate increases could weigh on yield attractiveness and delay a sector re-rating. We advocate a selective approach, favouring REITs with resilient portfolios, sustainable DPU growth, healthy balance sheets, and high debt hedging ratios. We favour retail S-REITs, supported by near-full occupancy and limited new supply, which should underpin mid-single-digit rental reversions in FY26e and FY27e. Our top picks are high-yielding S-REITs with resilient portfolios: Stoneweg Europe Stapled Trust (SERT SP, BUY, TP: €1.89), where the proposed manager internalisation could unlock value, alongside data centre growth optionality, and Elite UK REIT (ELITE SP, BUY, TP: £0.41), which benefits from UK government-backed rental income and a 99% interest rate hedging ratio.

Space Exploration Technologies Corp. – Super Intelligence lifts SpaceX into profit

Recommendation: BUY; TP US$250.00; Last close: US$159.31; Analyst Glenn Thum

• 3Q26 revenue of US$14.6bn surged 161% YoY, with 9M26 revenue at 94% of our FY26e forecast, ahead of our expectations on stronger SI revenue. Results were driven by 1) SI, as new cloud services agreements came online at higher rental prices and Cursor added US$608mn from mid-August; 2) Connectivity, as aviation installs and Starshield contracts lifted enterprise and government revenue 91% YoY; and 3) operating leverage, as higher-margin cloud services turned SI profitable and gave SPCX its first operating profit since listing.
• Starlink consumer ARPU fell 17% YoY as lower-priced plans and markets made up more of the subscriber base. Space revenue grew on a richer customer mix, including a Falcon Heavy launch for NASA, despite fewer customer launches. Management guided 1Q27 revenue of US$33bn to US$37bn and 4Q26 capex of US$35bn to US$40bn (prev. roughly US$18.4bn a quarter) and maintained its US$100bn ARR target for December. It expects 4Q26 gross margin to fall back to 2Q26 levels as one-off benefits in 3Q26 do not recur.
• Upgrade to BUY from SELL with a higher target price of US$250.00 (prev. US$75.00) as we raise FY26e revenue by 56% to US$45.1bn and lift FY27e by 201% to US$132bn on higher SI revenue. Our WACC/growth rate assumptions of 10%/3.5% remain unchanged. SPCX compute demand is running ahead of supply. Contracts are renewing at higher prices per watt, new capacity pays back in under a year, and guidance implies 1Q27 revenue more than double 3Q26. The main risk is that rental prices fall as capacity grows. Management expects compute value per watt to rise as models improve, and older H100 chips still rent above their original prices.

Wells Fargo Maintains Growth Momentum Despite Rate Headwinds

JPMorgan Chase Maintains ACCUMULATE Rating Despite Lower Target Price

Lion-Phillip S-REIT ETF: Analysts Maintain Positive Outlook Despite Rate Headwinds

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