Market Overview

Singapore

Straits Times Index (STI) is a market capitalisation weighted index that tracks the performance of the top 30 companies listed on SGX.

Approaching the 4,000 resistance, where a potential break above this key level could see a new higher support being form where the upside could continue, backed by the longer term moving averages still heading up

The index had rebounded from the 3,800 support level after short term weakness was experienced, the 20d Moving Average had resumed its upward trajectory.

Upside target can be drawn toward the 4,200, if the index breaks this consolidation phrase.

Supported by steady GDP growth projections of 1% to 3% and easing inflation, with core inflation expected to moderate to around 1.5%.

Hot News (Click to read):

• Commentary: US tariffs won’t cause Singapore inflation to rise, but may slow down growth (CNA)

• Economists keep Singapore’s 2025 growth forecast at 2.6% as trade tensions rise (The Straits Times)

Dow Jones Industrial Average (DJIA) tracks the daily price movements of 30 large, public-owned blue-chip American companies.

Rebounding from 41,000, the Index had seem to have recovered from the recent weakness after it had retreated from the 45,000 earlier this year, with the 20d MA still pointing down, proceeding with caution in the nearer term would be advised.

S&P 500 Index is a market-capitalization weighted index of the 500 leading companies in the US which is widely considered as one of the best gauge of the US economy.

Similarly the S&P500 had saw weakness where the 5,800 psychological level gave way as the index headed toward the 5,500 support level where buying interest resumed. Currently, the 100d Moving average looks to be flattening out. If the index is able to head toward the psychological 6,000 resistance, the longer term uptrend could continue.

Recent economic forecasts suggest a deceleration in growth. The Federal Reserve has adjusted its 2025 GDP growth estimate downward to 1.7%, a decline from the earlier projection of 2.1%.

Concurrently, core inflation is anticipated to reach 2.8% by year-end, surpassing the Fed's 2% target.

The Federal Reserve has maintained current interest rates but signaled the possibility of two rate cuts later in the year to support economic activity amid inflationary pressures.

Hot News (Click to read):

• Consumer confidence in where the economy is headed hits 12-year low (CNBC)

• U.S. Treasury yields move lower as consumer outlook plunges (CNBC)

Singapore Stocks Spotlight

ST Engineering (S63.SI)
Target Price: S$7.00

About ST Engineering

• Singapore Technologies Engineering Ltd provides solutions and services in the aerospace, electronics, land systems, and marine sectors

• Operates through the following business segments: Commercial Aerospace, Urban Solutions and Satcom and Defence and Public Security

Fundamental

• In the fiscal year ending December 31, 2024, ST Engineering reported robust financial results, revenue came in at $11.28B, a 12% increase from the previous year

• Net profits increased to $702M, up 20% year on year

• Earnings before Interest and Tax also increased by 18% to $1.08B

• In December 2024, the company entered into a strategic agreement with Kazakhstan Paramount Engineering to establish in-country production capabilities for a new 8x8 armored vehicle, reflecting the company's commitment to expanding its global footprint and defense offerings

• Plans to continue to expand internationally in both defense and commercial markets

Technical

• Both short-term and long-term uptrend remains firmly intact with all 3 moving averages heading up

• Immediate temporary support around 6.30, while resistance is near the 7.00 psychological level, where selling pressure is present

• Price has found a new higher key support level around 5.80

• 1GT bullish signal in January is still playing out, with no exit yet

• Would be good to observe a sideway consolidation first before price push higher, in order for uptrend to remain sustainable

GLD US$ (O87.SI)
Target Price: US$300

About GLD US$

• ETF managed and marketed by State Street Global Advisors

• Designed to initially track the price of a tenth of a troy ounce of gold

Fundamental

• In view of Trump’s administration uncertainty & volatility, gold provides a natural hedge against inflation and is generally regarded as a safe-haven investment

• Trading GLD shares in the secondary market or via a Trust may be lower than the costs associated with buying, storing and insuring physical gold in a traditional allocated gold bullion account

• Inverse relationship between gold prices and US dollar

Technical

• Uptrend remains firmly intact with price consistently heading higher and finding new higher support

• Currently price is still trading above trailing support, affirming the uptrend, with an immediate support around 272 - 274

• Key support is found around 263, where price bounced off the trailing support before pushing higher

• As long as price is able to hold firmly above 263 and the general market continues to be volatile, would not rule out more upside towards 300 as investors flock to gold as a safe-haven instrument

SEMBCORP IND (U96.SI)
Target Price: S$7.10

About Sembcorp Ind

• A leading energy and urban development group focused on sustainable solutions

• Operates across power generation, renewable energy (solar, wind), and utilities

• Key presence in Singapore, Southeast Asia, India, China, and the UK

• Has shifted strategic focus towards green energy, aligning with global decarbonisation trends

Fundamental

• FY2024 net profit before exceptional items (EI) stood at S$1.02B, maintaining levels seen in FY2023 despite planned maintenance

• Renewable expansion by adding 4.1GW of new renewables capacity, bringing total to 17.0GW, including 13.1GW of installed capacity

• Proposed final dividend of 17.0 cents, bringing total FY24 payout to 23.0 cents, a 77% increase from FY2023

• Gas and Related Services segment posted S$727M in net profit before EI, while Integrated Urban Solutions surged 40% YoY to S$169M

• Over 98% of gas-fired power portfolio is backed by long-term contracts, with 60% locked in for over five years, ensuring earnings visibility

Technical

• Price has broken above the key 5.80 level, turning it to become a higher support

• A hammer candlestick pattern appeared on 14 Mar (near the support) which provides confirmation on buying interest in the support zone

• Immediate resistance around 6.50, where selling pressure is at

• Short-term strength based on 20d MA is firmly intact, heading up steeply, while longer-term trend based on 100d and 200d MA is sloping upwards, indicating uptrend is intact

• If price is able to break and hold above 6.50, would not rule out more upside towards 7.20

• However, around 7.00 psychological level, perhaps we may see some profit-taking return first

United States Stocks Spotlight

BERKSHIRE HATHAWAY INC (BRK.B.NY)
Target Price: US$580.00

About Berkshire Hathaway Inc

• Globally involved in insurance, freight rail transportation, and utilities

• Offers a range of insurance services and operates rail systems in North America

• Established in 1998, headquartered in Omaha, Nebraska

Fundamental

• Berkshire holds around $350B in cash, providing strong flexibility for future investments

• Operating profit grew strongly to $47.4B in FY2024, driven by insurance and investment segments

• Its insurance segment continues to deliver double-digit revenue growth with EBIT margins above 25%

• Cyclical businesses like railroads, energy, and manufacturing make up over half of operating EBIT and are benefiting from U.S. economic growth

• Stable earnings, diversified segments, and strategic shift toward U.S. Treasuries position the company defensively for future volatility

Technical

• Price has found a new higher support around 490, which was previously the resistance level as seen from the inverted hammer candlestick’s long upper shadow on 27 Nov 24

• Potential accumulation on the dips around 490 - 500

• Immediate resistance appears to be around 540, where some profit-taking could return first

• Uptrend remains intact as all 3 MAs are still heading upwards with 2 consecutive 1GT bullish signals playing out with no exit signals yet

Recent News (Click to Read)

• Berkshire Raises Stakes in Japan’s Largest Trading Houses (Bloomberg)

• Berkshire Hathaway: 3 Reasons To Buy (SeekingAlpha)

• Why Warren Buffett's Berkshire Hathaway Is Still Poised For Outperformance (SeekingAlpha)

CARDINAL HEALTH INC (CAH.NY)
Target Price: US$140.00

About Cardinal Health

• Cardinal Health is a leading distributor of pharmaceuticals and medical products, serving hospitals, pharmacies, and other healthcare providers across the U.S

• The company operates through two main segments: Pharmaceutical & Specialty Solutions and Medical (GMPD) and is also investing in automation, nuclear medicine, at-home healthcare, and next-gen therapies like cell and gene treatments

Fundamental

• Q2 earnings came in strong with EPS at $1.93 (above estimates by $0.17) and revenue at $55.26B (beating by $247M)

• Specialty growth remains a key profit driver, with 16% YoY growth in Q2 and rising contribution from high-margin services

• Strong margin expansion driven by cost control, inflation easing, and favorable product mix (specialty, consumer health, generics)

• Strategic acquisitions (GI Alliance, ION) expanding reach into high-growth therapeutic areas like gastroenterology and oncology

• Free Cash Flow was temporarily negative in Q2 due to acquisition timing but expected to recover in H2

Technical

• Since 2025, price has been trading within a range around 124 - 130, where it has recently broke above the upper bound, forming a new higher support level

• Uptrend remains intact as all 3 MAs are still heading upwards

• Price is also currently trading above the trailing support, aligning with the uptrend

• Potential upside target towards 140, as long as the key support around 124 - 125 holds

Recent News (Click to Read)

• Cardinal Health: Not Expensive, But Still Rather A 'Hold' (SeekingAlpha)

• Can Healthcare Stocks Keep Outperforming the Market? (Morningstar)

• Cardinal Health Q1 Earnings: Margins Signal More Upside (SeekingAlpha)

SPOTIFY TECHNOLOGY S.A (SPOT.NY)
Target Price: US$640.00

About Spotify

• Spotify is a leading global audio streaming platform offering music, podcasts, and audiobooks

• The company operates on a freemium model with free ad-supported and premium paid tiers

• With continuous innovations, Spotify is expanding into video content, higher-tier pricing, and creator monetization tools to deepen user engagement and revenue growth

Fundamental

• Spotify ended 2024 with all-time highs in revenue (€4.2B), gross margin (32.2%), operating income (€477M), and free cash flow (€877M)

• Monthly active users (MAUs) grew by 35M to 675M, and premium subscribers rose by 11M to 263M in Q4 alone

• Management dubbed 2025 the “year of accelerated execution,” prioritizing faster product launches, improved monetization, and disciplined investment in core music/video offerings

• Gross margin is projected to remain strong despite Q1 seasonality, with full-year profitability expected to improve on top of 2024’s gains

Technical

• Price has rebounded from the 480 support level after witnessing general market weakness and tech stock sell down in Feb 25

• Immediate resistance around 640, where some profit-taking may return first

• Longer-term uptrend based on 100d and 200d MA still intact and heading up

• If price is able to break and hold firmly above resistance, 20d MA starts to point up as well, would not rule out more upside towards psychological 700 first

Recent News (Click to Read)

• Spotify shares pop 13% after company reports first profitable year (CNBC)

• Spotify Stock Soars 130% in a Year: Is it Still a Buy Now? (Zacks)

• Spotify to launch new premium service aimed at music ‘superfans’ (Financial Times)

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