Hello everyone,
After a choppy first quarter, we’re beginning to see clearer themes emerge. Rate cut expectations are still in play, but not as aggressively priced as before. Economic data remains mixed, strong in some areas, soft in others, and that’s creating a market that’s far more selective.
Inflation has cooled but remains sticky around the mid-2% range, while rising oil prices and geopolitical tensions are adding fresh uncertainty. We’re entering a more selective phase. Capital is rotating, volatility is picking up, and not all sectors are benefiting equally. In this month’s edition, we’ll break down where the strength is building and how to position as markets head deeper into Q2.
Your No.1 Fan,
Joey Choy
Market Overview
Singapore
Straits Times Index (TradingView)
Straits Times Index (STI) is a market capitalisation weighted index that tracks the performance of the top 30 companies listed on SGX.
Singapore’s economy continues to show resilience heading into Q2, supported by stronger-than-expected growth in 2025 and a gradual recovery in the electronics and semiconductor cycle.
Export momentum remains a key driver, particularly with demand tied to AI and data centre investments, while services and domestic consumption provide additional stability.
Inflation remains contained in the 1–2% range, allowing the Monetary Authority of Singapore (MAS) to maintain its current policy stance, though rising oil prices and geopolitical tensions are emerging risks that could push costs higher.
On the equity front, the STI remains near its highs, underpinned by strong performance from the banking sector and dividend-heavy blue chips.
The range bound movement continues with the index trading between the 4,800 support and 5,000 psychological resistance where selling pressure had returned multiple times. A 1GT Bearish signals appeared in early March, which coincided with the start of the geopolitical war, indicating selling pressure has returned. However, the longer-term moving averages (100d and 200d MA) are still sloping up, signaling the long term uptrend is still intact at the moment.
If the immediate resistance gives way, the next target could be drawn higher toward the 5,200 first, marking a new high for the index.
Hot News (Click to read):
Dow Jones Industrial Average (TradingView)
Dow Jones Industrial Average (DJIA) tracks the daily price movements of 30 large, public-owned blue-chip American companies.
After briefly dipping toward the 45,000 level, buyers showed up to defend this key psychological level. If the index is able to re-capture the 48,000 resistance, the longer term uptrend could potentially resume.
S&P 500 (TradingView)
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.
The index experienced weakness in March where several key supports were broken, sending the index downward toward the 6300 level where buying interest resurfaced. With the 20d moving average (MA) crossing below 100d MA and looks to be testing the 200d moving average, this signals that weakness could continue if the rebound from the 6,300 support is not sustained. Meanwhile, the 6,800 resistance remains the immediate target.
The U.S. market is entering Q2 with a more complex macro backdrop. Inflation has moderated but remains sticky around the mid-2% range, while rising oil prices and geopolitical tensions are beginning to reintroduce upside risks.
At the same time, economic data continues to show resilience with steady labour markets and ongoing investment, particularly in AI and infrastructure leading the Federal Reserve to adopt a more cautious stance on rate cuts.
Hot News (Click to read):
Singapore Stocks Spotlight
ST ENGINEERING (S63.SI)
Target Price: S$12.00
ST Engineering (TradingView)
1GT Bullish Entry Signal Appeared on 7 Jan 26, No Exit Signal Yet
About ST Engineering
ST Engineering is a Singapore-based global technology, defence, and engineering group
The Group operates across Defence & Public Security, Commercial Aerospace, and Urban Solutions & Satcom
It serves government and commercial customers worldwide, with strong exposure to defence contracts, aircraft maintenance (MRO), and smart city solutions
Its business model is anchored by long-term contracts and recurring services, providing stable and predictable earnings
Fundamental
ST Engineering continues to deliver steady top-line growth backed by strong order visibility, though margin pressures remain an area to watch
In H2 2025, the Group reported net profit of S$448 million (+23% y/y) on revenue of S$6.43 billion (+12% y/y), reflecting broad-based growth across its core segments
Revenue rose to S$12.35 billion, but net income declined to S$462.8 million, with profit margins compressing to 3.7% (from 6.2%), highlighting cost pressures and a shift in business mix
Earnings visibility remains strong, supported by its defensive business model and government-linked contracts, which provide recurring and stable cash flows
ST Engineering proposed a final dividend of S$0.06 and a special dividend of S$0.05, reinforcing its position as a consistent dividend payer
Technical
With prices testing the 11.30 resistance multiple times since early Mar 2026, it seemed that a new higher support around 10.50 was also found
Uptrend remains firmly intact with all 3 MAs heading upwards, with 2 consecutive 1GT Bullish signals still in play
If price is able to firmly break out of this consolidation range, a new higher target could be drawn toward the 12.00 level, where some selling pressure could return first
Note that sideway price consolidation in the midst of a longer-term uptrend could represent a more sustainable uptrend
SINGAPORE EXCHANGE (S68.SI)
Target Price: S$21.00
Singapore Exchange (TradingView)
1GT Bullish Entry Signal Appeared on the 18 Mar 26, no exit signal yet
About SGX
Singapore Exchange (SGX) is Singapore’s national stock exchange, providing a platform for trading equities, derivatives, fixed income, and ETFs
It operates a fully integrated exchange, covering listing, trading, clearing, settlement, and market data services
SGX has diversified beyond equities into derivatives and multi-asset products, making it a key hub for Asian risk management
Its business model benefits from market volatility and trading activity, generating recurring income from trading fees and listings
Fundamental
SGX continues to demonstrate steady earnings growth supported by rising trading activity and diversification into derivatives
In 1H FY2026, the Group reported net profit of S$42.7 million (+1% y/y) on revenue of S$736.2 million (+8% y/y), slightly below expectations on EPS but broadly in line operationally
Trading activity remains a key growth driver. In February 2026, total securities market turnover rose 30% y/y to S$38.5 billion, with daily average value up 45% to S$2.1 billion
SGX declared an interim dividend of S$0.11 per share, maintaining its consistent payout track record
SGX is well-positioned to benefit from higher market volatility, increased retail participation, and growth in derivatives trading
Technical
Uptrend for SGX remains firmly intact as all 3 MAs are still heading upwards
This can be further supported by the 2 consecutive 1GT Bullish signals still playing out
As long as price is able to continue holding above trailing support (TS), uptrend remains firm
Price has rebounded from the low of 17.00 in Mar and continue to head higher, the immediate support appears to be around 19.00, with target drawn towards 21.00, where potentially some selling pressure could return near the 20.00 psychological level first
If buying interest continue to pick up, it would be good to see a new higher consolidation range between 20.00 and 21.00 for a more sustainable uptrend
SINGTEL (Z74.SI)
Target Price: S$5.60
Singtel (TradingView)
1GT Bullish Entry Signal Appeared on 11 Feb 26, No Exit Signal Yet
About Singtel
Singtel is Singapore’s largest telecommunications group, providing mobile, broadband, enterprise ICT, cybersecurity, and data centre services
The Group operates across key segments, including Singtel Singapore, Optus (Australia), NCS (enterprise IT), and Digital InfraCo (data centres and infrastructure)
Pivoting towards digital infrastructure, regional associates and data centre investments
Its regional exposure includes stakes in major telecom operators such as Bharti Airtel, giving it diversified earnings streams
Fundamental
Singtel delivered a strong set of results, with 3Q FY2026 net profit surging 43.5% year-on-year to S$1.89 billion, driven by contributions from regional associates and improved operational performance
Revenue remained stable at S$3.66 billion (+0.9% y/y), supported by 3.1% growth in mobile service revenue
Singtel has initiated share buybacks, signaling confidence in its cash flow generation, while maintaining an attractive dividend profile with a yield of around 3.6%
A key growth catalyst is its expansion into digital infrastructure. Singtel’s participation in the STT GDC (data centre) deal, has led multiple brokerages to raise target prices to around S$5.20–5.34, reflecting confidence in long-term growth from data centres and AI-related demand
Singtel is transitioning from a traditional telco into a digital infrastructure and regional earnings platform, with upside driven by data centres, associates, and capital management initiatives, while near-term performance remains tied to associate contributions and market conditions
Technical
Price over the last month has reached an all-time-high of 5.27, indicating that buying interest for Singtel has returned
Longer-term uptrend remains firmly intact with both 100d and 200d MAs still sloping up, while short-term trend (20d MA) is just heading sideways
The short-term sideway consolidation can also been seen from the price action hovering between both support (4.80) and resistance (5.20)
If price is able to firmly break and hold above the resistance with short-term trend heading up, potential upside target could be drawn towards 5.60
United States Stocks Spotlight
JOHNSON & JOHNSON (JNJ.NYSE)
Target Price: US$250.00
Johnson & Johnson (TradingView)
1GT Bullish Entry Signal Appeared on 14 Jan 26, No Exit Signal Yet
About Johnson & Johnson
Johnson & Johnson (JNJ) is a global healthcare company focused on pharmaceuticals (Innovative Medicine) and medical technology (MedTech)
It operates across a diversified portfolio of treatments, medical devices, and healthcare solutions, with strong global reach
JNJ is known as a “Dividend King”, with over 60 consecutive years of dividend increases, making it a defensive, income-generating stock
Fundamental
Johnson & Johnson continues to deliver stable, defensive growth, with revenue approaching US$100 billion, supported by its diversified pharmaceutical and MedTech portfolio
A key catalyst is its drug pipeline, particularly the recent FDA approval of Icotyde, which has the potential to generate up to US$8 billion in annual sales, contributing roughly 8% incremental revenue growth
Consensus estimates project EPS growth at ~8.9% CAGR from 2026 to 2030, with earnings expected to rise from US$11.54 to US$16.27, supporting long-term earnings visibility
JNJ remains highly attractive for income investors, with a 63-year track record of dividend growth and a sustainable payout ratio of around 46–50%, backed by a strong balance sheet and AAA credit rating
Technical
Since the war started in late Feb, short-term weakness can be seen from the 20d MA heading downwards, while longer-term uptrend is still intact
Price has also recently rebounded from the support zone around 230, where buyers stepped in to accumulate on the dips
Resistance remains to be around 250, where profit-taking could return first
If 20d MA continues to flatten out, potentially a sideway consolidation could play out, until resistance is firmly broken
Recent News (Click to Read)
WESTERN DIGITAL CORPORATION (WDC.NQ)
Target Price: US$350.00
Western Digital Corporation (TradingView)
1GT Bullish Signal Appeared on 19 Mar 26, No Exit Signals Yet
About Western Digital Corporation
Western Digital is a leading data storage company focused on hard disk drives (HDDs) for cloud, enterprise, and data center markets
The company is increasingly positioned as a key infrastructure player in the AI ecosystem, providing large-scale, cost-efficient storage solutions for hyperscalers
Following its SanDisk divestment, WDC is now a more focused, higher-margin HDD business
Fundamental
Western Digital is benefiting from a strong AI-driven storage demand cycle, as hyperscalers require massive, cost-efficient data storage. HDD remains essential due to its 10–15x cost advantage vs SSDs, supporting long-term demand
The company has delivered a strong turnaround, with 2QFY26 revenue up 25% YoY and gross margins improving to ~45%, driven by data center customers (89% of revenue)
Management guides for ~40% revenue growth and 47–48% margins, supported by tight supply and sold-out 2026 capacity
Next-gen technologies (UltraSMR, HAMR) and operating leverage could drive >50% margins and strong EPS growth, with revenue expected to grow 25–30% annually
Technical
Longer-term uptrend remains intact with both 100d and 200d MAs still sloping up, but for short-term trend, 20d MA has just been cruising sideway
Note that 5 consecutive 1GT Bullish signals are still present, with no signs of reversal yet
A new higher support could be found around 240, where buyers came in to scoop prices back up during the 2nd week of Mar
Since the start of 2026, price has been consistently testing the psychological resistance around 300.00
If 300.00 resistance is firmly breached, next potential upside target could be towards 350, where it would not be surprising for some profit-taking to return first
Recent News (Click to Read)
VERTIV HOLDINGS (VRT.NYSE)
Target Price: US$320.00
Vertiv Holdings (TradingView)
1GT Bullish Entry Signal Appeared on 6 Feb 26, No Exit Signal Yet
About Vertiv Holdings
Vertiv is a global provider of critical digital infrastructure solutions, focusing on power and cooling systems for data centres
The company designs and supports technologies such as uninterruptible power supply (UPS), thermal management (cooling), and integrated data centre systems
Its solutions are essential for AI data centres, cloud computing, and communication networks, where reliability and uptime are critical
The business also generates recurring revenue through maintenance, monitoring, and lifecycle services
Fundamental
Vertiv is a key AI infrastructure “pick-and-shovel” player, benefiting from strong demand in data centre power and cooling solutions. The company holds a robust US$15 billion backlog (+100% YoY), providing strong revenue visibility
The Group delivered strong growth, with FY2025 revenue reaching US$10.2 billion (+26–28% YoY), while Q4 revenue rose 22–23% YoY to US$2.88 billion
Profitability continues to improve, with operating margins expanding to ~20–23% and EPS growth supported by pricing power and operating leverage
Order momentum remains strong, with Q4 orders surging over 250% YoY and a book-to-bill ratio of ~2.9x, reinforcing continued growth into 2026
Management guides for ~30% revenue growth in 2026, supported by AI-driven data centre expansion, while long-term targets include 12–14% CAGR and margin expansion toward 25%
Technical
Price has gapped up after the latest earnings announcement in Feb, with new higher support found around 240
This rising window gap acts as a support zone to monitor, should this gap closes, it indicates that bullish momentum could weaken
Longer-term uptrend remains intact with both 100d and 200d MAs still heading upwards
Immediate resistance remains to be around 280.00, where profit taking returned as seen in Mar
Next upside target could be drawn towards 320.00, if resistance is firmly breached
Recent News (Click to Read)
Note that by subscribing to receive any of Joey's training by email, you agree to allow us to send you the training by email. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of the units in any fund and the income from them may fall as well as rise. If the investment is denominated in a foreign currency, factors including but not limited to changes in exchange rates may have an adverse effect on the value, price or income of an investment. Past performance figures as well as any projection or forecast used in these web pages, are not necessarily indicative of future or likely performance of any investment products. By Accessing this Website and ANY of its pages, you are agreeing to the terms set out ON ALL the following pages as seen below. Copyright © | Joey Choy | All Rights Reserved | Disclaimer | Privacy & Security Policy | Terms and Conditions
