Trump (again) continues weaponizing tariffs to force countries to bow to his demands. This quarter, the focus for Trump is on Pharmaceuticals, where he demands companies to move manufacturing back to USA. Frankly, previous deals signed mean nothing under Trump administration, as he can just change the tariffs % as and when he feels like it. Look at India, they are charged additional 25% tariffs to penalize its trade with Russia beginning 27-Aug-25 under so called "secondary" tariff. China on the other hand will seize this opportunity to replace USA as the soft power leader of the world. Market is still not looking rosy at the moment, with frequent news of companies still right sizing their workforce.
DJI ended at 46316, an increase of 2222 points (+5.03%) compared to 2Q 2025. For Singapore, STI ended at 4300, an increase of 336 points (+8.47%) compared to last quarter. Banks in Singapore (48.7% STI weightage) continues to drive the STI direction. USA Fed has started their cycle of reducing interest rates, and projects there will be 2 more cuts this year. Banks usually do not do well in an interest rate reduction environment. I think STI may just trade sideways for the rest of the year, with banks likely taking a small hit in their share price.
In this current quarter, I did some loading on USA REIT as the real estate has seem to bottom and start recovering with more companies asking their employees to return back to office and interest rate has started to decrease.
Transaction 1: Subscribe NTT DC REIT IPO shares in July.
With the focus in AI, data center will continue to be in hot demand. 7% projected yield looks enticing enough to invest some money in.
Transaction 2: Bought 1 batch Kep Pac Oak US REIT shares in July.
Same reason given as above. The USA real estate has seem to start recovering with more companies asking their employees to return back to office and interest rate has started to decrease. Best time to invest more money in before the share price start rising. Besides, this REIT has a solid sponsor and a good management team.
That is all for now. See you all in Q4 2025 update and thank you for reading thus far.
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