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.

Core and overall inflation fell more than expected in October, with economists expecting it to continue to ease into 2025.

Core Inflation (stripping out private transport and accommodation cost) fell to 2.1% year on year from 2.8% in September. This was also below the 2.5% general consensus by economist in a Bloomberg poll

The drop was mainly led by slower price rises in services, electricity and gas, and retail and other goods.

Overall, or headline, inflation fell to 1.4 per cent year on year in October – the lowest reading since March 2021. The drop was led by slower accommodation inflation and a steeper fall in private transport costs.

With the 3,700 psychological resistance giving way, to form a new support, we see prices continue to head toward the 3,800 new resistance level.

With the 20d MA still pointing up and prices holding above it, momentum could continue where the resistance level is tested.

The longer term uptrend remains intact as well with the 100d MA still holding above the 200d MA. Potential target toward the 3,900 if the 3,800 level is breached.

• Singapore core inflation drops to 2.1% in October, lowest in almost three years (The Straits Times)

• 10-year average return on latest Singapore Savings Bond falls to 2.77% (The Business Times)

United States

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

At an all time high where the 44,400 psychological support level continues to hold as prices head higher, the uptrend remains intact with the 3 moving averages still pointing up, With upside toward the 45,000 as long as the key 43,500 level is intact.

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 continues to test the 6,000 key level with current support still being held at 5,600 - 5,700, as long as the 3 moving averages continue to point up, could see upside toward 6,500.

Inflation ticked higher, with the Fed's preferred gauge, the personal consumption expenditures (PCE) price index, rising 0.2% monthly and 2.3% annually, slightly above September's 2.1%. Core inflation, excluding food and energy, increased by 0.3% monthly and 2.8% annually, driven by rising services costs, while goods and energy prices fell.

Despite significant declines from 2022 peaks, inflation remains a concern, fueling expectations for another Fed rate cut in December. Consumer spending rose 0.4% in October, supported by a 0.6% income jump, though the saving rate dipped to 4.4%.

Hot News (Click to read):

• Trump vows an additional 10% tariff on China, 25% tariffs on Canada and Mexico (CNBC)

• Fed’s preferred inflation gauge rises to 2.3% annually, meeting expectations (CNBC)

OUR TOP FAVOURITE STOCK FOR SG MARKET

DBS (D05.SI)
Target Price: S$43.00

About DBS

• DBS Group Holdings Ltd engages in retail, small and medium-sized enterprise, corporate, and investment banking services

• Operates through the following business segments: Consumer Banking, Wealth Management, Institutional Banking, Treasury Markets

Fundamental

• DBS posted a record net profit of SGD 3.03b in 3Q24, up 15% YoY, with income rising 11% to SGD 5.75b, driven by strong growth across multiple segments

• Non-performing loans (NPL) ratio fell to 1.0% with an 8% drop in non-performing assets, supported by robust allowance coverage of 135%

• Announced a SGD 3 billion share buyback and a quarterly dividend of SGD 0.54 per share, raising nine-month dividends to SGD 1.62 per share

Technical

• Uptrend is firmly intact with all 3 MAs heading higher

• Key psychological support is around 40.00 to consider accumulating on the dips

• Immediate psychological resistance is around 43.00 where selling pressure may return first

• If price can firmly break above the resistance, would not rule out more potential upside towards 46.00rend Webclass by Joey Choy

OUR TOP FAVOURITE STOCK FOR US MARKET

META PLATFORM INC (META.NQ)
Target Price: US$640.00

About Meta Platforms Inc

• Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide

• It operates in two segments, Family of Apps and Reality Labs

Fundamental

• Q3 revenue grew 20% YoY to $38b, driven by higher ad impressions and steady ad pricing, reflecting strong ad demand across Meta's platforms

• Net income rose 30% YoY to $11.6b, with operating margin improving to 37%

• Free cash flow increased 14% YoY to $15.5 billion, backed by $24.7b in operating cash flow

• Meta advanced AI tools like Meta AI and Llama, while Reality Labs posted a $4.4b loss due to continued AR/VR investments

Technical

• Long term uptrend remains intact as both 100d and 200d MA are still heading upwards, despite seeing some short-term weakness with the 20d MA sloping down

• Price is testing the immediate support around 545.00, where we could see some buying interest return

• Immediate psychological resistance looks to be around 600 where sellers took control over the past months

• If price breaks below the support, we could potentially see sideway consolidation again between 440 - 540

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