Skip to main content
Weekly Outlook

Weekly Outlook 30 May 2022 – 05 June 2022

Weekly Commentary: 30 May 2022 – 05 June 2022


The stock market had finally rebounded after a seven-week decline last week. Growth stocks as loosely represented by the NASDAQ Composite (+6.85%) held a slight lead by Friday, followed by the S&P 500 (+6.62%) and the Dow Jones Industrial Average (+6.62%). In contrast, the STI (-0.27%) slightly slipped and was edged out by the Hang Seng index (+0.30%). Overall, we saw positive returns from all eleven S&P 500 sectors with Consumer Discretionary (+9.26%), InfoTech (+8.08%), and Energy (+8.21%) delivering the best performance. The lagging sectors in the other hand, were Healthcare (+3.27%), Communication Services (+3.60%), and Utilities (+5.09%).


The rebound was driven by sign of peaking inflation and neutral stance Federal Reserve. The U.S. consumer price index had shown that the U.S. inflation rate by the end of April had decreased by 0.2 pp to 8.3%, although still remains at four-decade highs. The U.S. core personal consumption expenditures price index had also slowed down to 4.9% YoY, from 5.2% YoY in March. The latest Federal Reserve meeting minutes released last Wednesday largely fit within market expectations as well. In summary, the Fed will balance inflation control with minimal impact to economic growth while the remaining rate hikes for the year seemed to be planned at 50 bps. As a result, the oversold growth sectors regained some of their past weeks’ losses. Energy continued to outperform given the ongoing Ukraine-Russia conflict and lack of viable alternative solutions.


The yield-curve stayed flat last week as the 10Y-2Y US Treasury remained at 0.20%. Both the U.S. 2-year and 10-year Treasury yields had decreased by 14 bps to 2.48% and by 7 bps to 2.74% respectively. The overall stock market sentiment had finally turned more positive with a downtick in volatility as the global High Yield (HY) and Investment Grade (IG) spread contracted by 54 bps to 2.78% and the CBOE Volatility Index (VIX) fell by 371 bps to 25.72%.



As can be seen below, weekly performance from the global REIT markets were all positive with the exception of S-REITs. However, the overall 12-month yield spreads are also mostly positive and favorable towards REIT’s forward total return. Back at home, the iEdge S-REIT Index (-0.75%) slipped with mostly negative returns from the S-REIT sub-sectors. Healthcare (-2.09%) and Diversified (-1.85%) fared the worst, while Industrial (+0.29%) and Hospitality (+0.10%) held up the best. With regards to the pandemic, the 7-day moving average of total COVID-19 cases had sharply increased to around seven thousand cases from five hundred the previous week.



Important Information

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.

Investments are subject to investment risks including the possible loss of the principal amount invested, and are not obligations of, deposits in, guaranteed or insured by PCM or any of its subsidiaries, associates, affiliates or PDs. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved. Any use of financial derivative instruments will be for hedging and/or for efficient portfolio management. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products. The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <> for more information in relation to the dividend distributions.

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. This advertisement has not been reviewed by the Monetary Authority of Singapore.

Leave a Reply