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.

As inflation is expected to continue to ease in 2025, Singapore’s commitment to ensuring wage growth outpaces inflation has bolstered consumer purchasing power and contributed to economic stability.

However, geopolitical tensions, inflationary pressures, and climate change pose risks to global trade and supply chains, which could impact Singapore’s open economy.

The economic outlook remains positive, with strong fundamentals, targeted policy measures, and a resilient workforce paving the way for a brighter, more inclusive future.

The index is once again testing the 3850 resistance, with an attempt to break above it in early January 2025. Both shorter and longer-term uptrend remains intact with all 3 MAs heading up positively. Support remains to be around 3650 - 3700 level as price was supported by buyers.

If price is able to breach the resistance firmly, would not rule out more upside towards 4000.

Hot News (Click to read):

• Singapore’s economy exceeded expectations, grew 4% in 2024: PM Wong (The Straits Times)

• Global trade tensions and shifts could benefit Singapore, but uncertainties remain in 2025: Analysts (CNA)

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

Price is once again approaching the 45,000 psychological resistance level with signs of short-term strength as the 20d MA has bounced off the 100d MA. If the 45,000 level gives way, we may see more potential upside towards 47,000, as long as the longer-term trend remains positive.

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.

SPX witnessed pullback last week due to the sell-off in AI & tech stocks, however support at around 5800 - 5850 is still holding. Resistance remains at around 6100. Longer term uptrend still looks positive, hence as long as support holds, would not rule out more upside towards 6350.

By 2025, the Federal Reserve's stance on interest rates will be a key driver. If inflation is under control, the Fed may have shifted to a neutral or accommodative policy, which could support equity markets. Conversely, if inflation remains stubborn, higher rates could weigh on growth stocks and borrowing costs.

High government and corporate debt levels could lead to concerns about fiscal sustainability and credit risk.

The U.S. market in 2025 could be shaped by a mix of economic recovery, technological innovation, and geopolitical developments.

Hot News (Click to read):

• Fed holds rates steady, takes less confident view on inflation (CNBC)

• DeepSeek’s AI claims have shaken the world — but not everyone’s convinced (CNBC)

Singapore Earnings Calendar

Note that the below information is taken from the dates displayed on Yahoo! Finance. The below calendar is not exhaustive. Please refer to Yahoo! Finance and SGX Announcement for exact dates & timings.

United States Earnings Calendar

Note that the below information is taken from the dates found on Earnings Whispers and Nasdaq. We've exclusively chosen stocks favored by investors with widely recognized names. The below calendar is not exhaustive. Please refer to Earnings Whispers & Nasdaq for the full list.

Singapore Stocks Spotlight

OCBC Bank (O39.SI)
Target Price: S$18.50

About OCBC Bank

• Oversea-Chinese Banking Corporation Limited (OCBC) is Singapore's second-largest bank by assets, offering a comprehensive range of financial services across various sectors

• OCBC places a strong emphasis on digital transformation to enhance customer experience and operational efficiency

• OCBC consistently ranks among the world’s safest banks and has been recognized for its financial strength and governance

Fundamental

• In the third quarter of 2024, OCBC reported a net profit of S$1.97 billion, a 9% increase from the same period in 2023, surpassing analysts' expectations

• Growth was primarily driven by increased wealth management activities, higher fee and trading income, and lower allowances

• Net interest margin (NIM) slightly decreased to 2.18% from 2.27% a year earlier, while return on equity improved marginally to 14.1%

• Management has expressed confidence in achieving its 2024 targets, including maintaining a NIM around 2.20%, low single-digit loan growth, credit costs near 20 basis points, and a return on equity above 14%

Technical

• Both short-term and long-term uptrend is firmly intact as all 3 moving averages are heading upwards

• As long as price can continue holding above the 16.50 support level, uptrend still remains intact

• Immediate psychological resistance around 17.50, where we see some profit-taking happening in early 2025

• Price has been trading above the trailing support since Nov 24 with a 1GT bullish signal, no signals of exit or reversal yet

• If price can break and firmly hold above resistance, potential upside target towards 18.50 first

SEATRIUM LTD (5E2.SI)
Target Price: S$2.45

About Seatrium

• Seatrium Limited, formerly known as Sembcorp Marine, is a leading global provider of innovative engineering solutions for the offshore, marine, and energy industries

• The company underwent a rebranding in 2023 following the merger between Sembcorp Marine and Keppel Offshore & Marine, aiming to strengthen its market position and expand its service offerings

Fundamental

• As of June 30, 2024, Seatrium's net order book reached S$26.1 billion, marking a 61% increase from the end of 2023 and representing the highest level in a decade

• Approximately 35% of this order book comprises renewables and cleaner/green solutions, aligning with the company's strategic focus on sustainable energy projects

• Company's strategic initiatives in expanding its renewable energy portfolio and improving operational efficiency are viewed favorably

Technical

• Reversal to the uptrend has been playing out since Oct 24, with more confirmation in Dec 24 as 100d MA has crossed above 200d MA

• Currently, all 3 MAs are heading in the same upward trajectory

• Immediate support is around 2.15, which was previously the resistance in Oct 24, where sellers came back to push price back down to retest the lower support around 1.80

• There are two 1GT bullish signals since Sep 24 with no exits in sight yet

• As long as price is able to hold above support, potential upside targets towards 2.45

ST ENGINEERING (S63.SI)
Target Price: S$5.20

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 third quarter of 2024, ST Engineering reported a revenue of S$2.8 billion, marking a 14% year-on-year increase from S$2.4 billion in the same period of 2023,growth was primarily driven by significant contributions from the Defence & Public Security (DPS) and Commercial Aerospace (CA) segments

• The company is expected to experience three consecutive years of double-digit earnings growth by FY2025, driven by the execution of projects from its substantial order book

Technical

• Since Sep 24, price has been consolidating sideways within the 4.40 - 4.80 range but longer-term trend still remains intact

• 20d MA has bounced off the 100d MA in Dec 24 and started to head upwards again, aligning with the longer-term trend

• Price has recently broke above the 4.80 resistance, turning it to become the immediate support

• With a recently new 1GT Bullish signal upon the break of the trailing resistance line, as long as price is able to hold above the new higher support, would not rule out more upside towards 5.20

United States Stocks Spotlight

GE AEROSPACE (GE.NY)
Target Price: US$230.00

About GE Aerospace

• GE Aerospace, formerly known as General Electric Company, is a leading manufacturer of commercial and military aircraft engines, engine components, and aircraft systems

• GE Aerospace offers aftermarket services and support for its products, including maintenance, repair, and overhaul (MRO) services

Fundamental

• In the third quarter of 2024, GE Aerospace delivered strong financial results, showcasing significant growth across key metrics.

• Total orders rose to $12.6 billion, marking a 28% year-over-year increase, while total revenue grew by 6% to $9.8 billion compared to the same period in 2023.

• Operating profit reached $1.8 billion, reflecting a 14% increase, with the operating profit margin improving to 20.3%, up 150 basis points.

Technical

• Short-term weakness was witnessed in Oct - Dec 24, where 20d MA has started to head down and crossed below the 100d MA

• However, in Jan 25, buying pressure returned and 20d MA has reversed upwards and bounced off the 200d MA, indicating short-term strength

• Price has gapped up upon earnings results but profit-taking returned closed to the psychological 200, key support level to take note is around 150 - 155

• As long as price is able to hold firmly above the 200 psychological level, would not rule out more upside towards 230

Recent News (Click to Read)

• GE Aerospace Set to Post Q4 Earnings: What Lies Ahead for the Stock? (Zacks)

• Where Will GE Aerospace Be in 4 Years? (Motley Fool)

• What Analysts Think of GE Aerospace Stock Ahead of Earnings (Investopedia)

WELLS FARGO & COMPANY (WFC.NY)
Target Price: US$88.00

About Wells Fargo & Co

• Provides diversified banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally

• Operates through four segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management

Fundamental

• Wells Fargo's net income rose significantly, reversing prior stagnation, despite a one-time tax benefit

• The bank missed revenue estimates for two consecutive quarters, with declines in key segments, suggesting potential headwinds in revenue growth

• 2025 guidance projects higher net interest income, though potential rate cuts pose a risk

• Cost-cutting efforts and share buybacks have boosted earnings per share and improved efficiency

Technical

• Uptrend is intact as all 3 MAs are heading up, with a recent 1GT bullish signal upon release of earning results

• Price has gapped up in Nov 24, forming a rising window gap which also acts as a support zone

• Key support level to note is around 68 -70, while resistance is around 78 -80

• If price is able to break and hold firmly above resistance, it is very likely to trigger another phase of bullish price action towards 88

Recent News (Click to Read)

• Wells Fargo & Company – Earnings surge despite NII decline (StocksBnB)

• It’s a Good (Great?) Time to Be a Big Bank (NYTimes)

• Wells Fargo Q4 Results: Profit beats estimates on dealmaking rebound as it raises interest income forecast (Economic Times)

BERKSHIRE HATHAWAY INC (BRK.B.NY)
Target Price: US$500.00

About Berkshire Hathaway

• 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

• Reported annual revenue stands at $369.9 billion, with steady year-over-year growth​

• Berkshire's cash holdings reached an all-time high of $325.21 billion, providing flexibility for future investments and downturn protection​

• Berkshire Hathaway does not pay dividends, preferring to reinvest cash for growth and acquisitions

• The company continues to explore acquisition opportunities but cites unattractive current valuations in potential targets

• Significant stakes in Apple, Coca-Cola, and American Express remain core to Berkshire's investment strategy, despite trimming positions in Apple and Bank of America

Technical

• 20d MA has recently start to show some signs of short-term strength again as it starts to head up and attempt to cross above the 100d MA, supported by the recent 1GT bullish signal

• Immediate resistance appears to be around 480, where we also saw a shooting star appear on 27 Nov 24

• If price can breach the 480 resistance, potential upside target towards psychological resistance at 500 first, where we may expect some profit-taking to return

Recent News (Click to Read)

• Warren Buffett’s Berkshire Hathaway scoops up Occidental and other stocks during sell-off (CNBC)

• Warren Buffett "Secretly" Owns 3 Industry-Leading Artificial Intelligence (AI) Stocks (Motley Fool)

• Should You Buy Berkshire Hathaway While It's Below $480? (Motley Fool)

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