Investment Talk - Pauline Yong

09/05/2026

The S&P 500 Index (SPX) gained 168 pts or 2.3% for the week at 7398 on Friday. Again major technology companies, semiconductor firms, and AI-related stocks led gains after another strong earnings season, with more than 80% of S&P 500 companies reportedly beating expectations.

The highlight for this week was actually the explosive rally in memory-chip companies such as Micron Technology and SanDisk. Investors increasingly believe the AI bottleneck has shifted away from GPUs toward memory chips like HBM (High Bandwidth Memory) and NAND storage. Micron surged more than 30% this week and reportedly sold out much of its 2026 HBM production capacity, while SanDisk jumped sharply on expectations of a prolonged AI-driven memory shortage. Analysts now view memory suppliers as major beneficiaries of the AI supercycle because AI data centers require enormous amounts of DRAM and storage alongside NVIDIA GPUs. However, this raised concerns about inflationary pressures in the tech sector and consumer electronics pricing. For next week, investors will likely continue rotating into AI infrastructure names, especially semiconductors and memory stocks, although profit-taking risk is increasing after the sector’s extremely strong run over the past two weeks. The SPX support is 7300, while the resistance is 7500. 📊🌍📈🚀

09/05/2026

The FTSE Bursa Malaysia KLCI (FBM KLCI) gained another 26 pts or 1.5% at 1,748 for the week. Market sentiment was supported earlier by stronger banking stocks ahead of Bank Negara Malaysia’s OPR decision, while energy and plantation counters remained volatile due to Middle East tensions and oil-price swings. Corporate headlines were dominated by AirAsia’s major aircraft order deal with Airbus, which boosted sentiment toward aviation-related counters, while selective buying also returned to defensive blue chips such as PETRONAS Dagangan and telecom stocks.

Regional geopolitical risks involving Iran and the Strait of Hormuz remained a concern because Malaysia is an oil-exporting economy and higher crude prices tend to support Petronas-linked counters but pressure broader market sentiment. Next week, the KLCI is expected to move cautiously due to geopolitical risk. The KLCI support is seen at 1735, resistance 1760. 📉🇲🇾

09/05/2026

The Straits Times Index (STI), gained 9 pts or 0.2% for the week at 4921, closed at below the 20 day but remained above the 200 day MA lines.

Singapore banks DBS, OCBC, and UOB remained the key support for the index as investors continued favouring high-dividend financial stocks amid expectations that interest rates may stay elevated longer. Meanwhile, aviation-related counters such as Singapore Airlines and SATS faced pressure due to renewed Middle East conflict concerns, especially fears of higher oil prices and disruptions around the Strait of Hormuz. Technology and industrial names linked to AI and regional infrastructure spending, including ST Engineering and Venture Corp, saw selective institutional buying.

Next week, the STI is expected to remain cautious with support seen at 4825, resistance at 5100. 📊🇸🇬 .

02/05/2026

The S&P 500 Index (SPX) gained 65 pts or 0.9% for the week at 7230 on Friday. For the month of April, it gained 680 pts or 10.4% in a volatile month. It has completely reversed the March 5% negative and now position itself at historical high level again. The Nasdaq surged over 15% and the Dow gained over 7%. Earnings season has been exceptionally robust, with roughly 83% of companies beating profit expectations and 27.8% YoY earnings growth, the strongest since 2021, led by technology names such as Apple.

At the macro level, U.S. manufacturing expanded for a fourth straight month, signaling resilience despite lingering inflation pressures. However, rising oil prices due to Middle East tensions increased inflation risk, while central bank officials turned more cautious, dampening expectations for near-term rate cuts. Despite that, markets largely shrugged off these risks, focusing on AI momentum, corporate capex, and limited immediate labor market damage.

Next week, the SPX support is 7100, while the resistance is 7300. 📊🌍📈🚀

02/05/2026

The FTSE Bursa Malaysia KLCI (FBM KLCI) gained another 2 pts or 0.1% at 1,722 for the week. For the April month, it lost 26 pts or 1.5%. Currently the KLCI is above both the 20 day and 200 day MA lines.

In the final week of April, market direction was largely driven by external geopolitical risks, especially the ongoing Israel–Iran conflict, which pushed oil prices higher and injected volatility across emerging markets. For Malaysia, this created a dual effect: stronger crude and commodity prices supported energy and plantation-linked counters, but rising fuel costs also increased inflation concerns and margin pressures for sectors like aviation and manufacturing. Overall, April reflected a “cautious optimism” phase, where domestic strength offset global uncertainty.

On the local front, the brief political tension in Negeri Sembilan. Initially triggered by a withdrawal of support from UMNO assemblymen, it has now been effectively resolved after central leadership intervention, with all parties reaffirming alignment within the unity government. This quick resolution helped contain political risk and prevented broader spillover into investor sentiment. Looking ahead, the KLCI is expected to remain range-bound with a slight positive bias, supported by domestic fundamentals but still sensitive to oil price movements, global rate expectations, and any renewed geopolitical escalation. Next week, the KLCI is expected to see a support at 1710, resistance 1735. 📉🇲🇾

02/05/2026

The Straits Times Index (STI), lost 10 pts or 0.2% for the week at 4912, closed at below the 20 day but remained above the 200 day MA lines. For the April month, it lost 109pts or 2.2%.

During the final week of April, STI performance was influenced largely by external geopolitical developments, particularly the escalating Israel–Iran conflict, which drove oil prices higher and injected volatility into global markets. For Singapore, a trade-dependent economy, this created mixed effects: higher oil prices supported offshore and energy-related plays, but also raised concerns over inflation, shipping costs, and margin compression for transport and industrial companies. At the same time, global central bank uncertainty, especially around U.S. rate cuts kept investors cautious, limiting upside despite generally stable corporate earnings.

Next week, the STI is expected to remain range-bound with a mild upward bias, supported by strong bank fundamentals but capped by external risks. The STI support is seen at 4825, resistance at 5100. 📊🇸🇬 .

25/04/2026

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CE/CPE/CPD 10 CE Points (Confirmed) / 10 CPE Points (TBC) / 8 CPD Points (TBC)
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25/04/2026

The S&P 500 Index (SPX) gained 39 pts or 0.5% for the week at 7165 on Friday and remained short term bullish at above both the 20 day and 200 day MA lines. WTI crude oil cooled by over 3% to settle around $94, and the VIX dipped below 19, signaling a significant reduction in the "war premium" that had previously haunted investors.

Mega-cap tech stocks surged after semiconductor giant ASML raised its 2026 forecast, and Alphabet and Microsoft reported earnings that surpassed estimates, proving that AI infrastructure spending remains aggressive despite regional instability. While the Dow Jones lagged slightly due to underperformance in traditional industrial sectors, the Nasdaq and S&P 500 were buoyed by a durable labor market with jobless claims falling to 207k. THe market seemed to shrug off the IMF’s warning about the slow down in global growth to 3.1% for the year due to war-related trade, and focus on strong corporate balance sheets instead. Next week, the SPX support is 7000, while the resistance is 7250. 📊🌍📈🚀

25/04/2026

The FTSE Bursa Malaysia KLCI (FBM KLCI) gained another 25 pts or 1.5% at 1,720 for the week. It has turned short term bullish at above both the 20 day MA line and the 200 day MA line. Market activity was driven by strong interest in mid-cap and technology stocks, with Malaysian Pacific Industries (MPI) and ViTrox leading the gainers. Domestic resilience remains a core theme, as the IMF recently upgraded Malaysia's 2026 GDP growth forecast to 4.7%, citing robust domestic demand and a steady recovery in global trade.

The energy sector stayed in focus as Malaysia prepares to roll out the B15 biodiesel mandate, a move that bolstered plantation and energy counters. Despite the geopolitical noise, the Ringgit remained relatively robust, trading around the RM4.03 mark, outperforming several regional peers. Next week, the KLCI is expected to see a support at 1700, resistance 1730. 📉🇲🇾

25/04/2026

The Straits Times Index (STI), lost 75 pts or 1.5% for the week at 4922, closed at below the 20 day but remained above the 200 day MA lines. UOB was the week’s notable laggard, falling 2.4% to $36.00 as it went ex-dividend, while DBS and OCBC also ended in the red. Conversely, Yangzijiang Shipbuilding defied the trend, surging 3.8% to $4.33, buoyed by strong sector demand and its role in the global shipping recovery.

The Monetary Authority of Singapore (MAS) released its April Macroeconomic Review, sounding a note of caution. The MAS warned that disruptions in the Strait of Hormuz have begun to lift global inflation and weigh on Singapore's major trading partners, leading to a tightened monetary policy stance.

Next week, the outlook for next week is "defensive" as the index seeks a firm floor above the 4,900 support level and the resistance is at 5100. 📊🇸🇬 .

18/04/2026

The S&P 500 Index (SPX) gained 310 pts or 4.5% for the week at 7126 on Friday and remained short term bullish at above both the 20 day and 200 day MA lines. A new record with a "V-shaped" recovery due to the reopening of the Straits of Hormuz. This news also caused WTI crude oil to plunge over 10% toward the $85 level, relieving immense inflationary pressure and sparking a massive relief rally in travel and airline stocks, though it weighed heavily on big oil majors like Exxon Mobil and Chevron.

Corporate earnings for Q1 2026 provided additional tailwinds. While Netflix shares tumbled nearly 10% on a cautious revenue outlook and leadership changes, the broader tech sector was bolstered by TSMC’s strong results, which reaffirmed resilient demand for AI infrastructure. Economic data presented a mixed but generally stable backdrop; U.S. industrial production unexpectedly slipped 0.5% due to war-related utility disruptions, yet jobless claims fell more than anticipated to 207k, signaling a durable labor market.

Next week, investors will be laser-focused on Tesla, Boeing, Intel, and IBM as they report results, alongside major defense contractors like Lockheed Martin and Northrop Grumman, whose guidance may shift if a permanent regional resolution appears likely. Technically, the SPX has moved into overbought territory with an RSI of 73, suggesting the potential for a short-term consolidation. The SPX support is 7000, while the resistance is 7250. 📊🌍📈🚀