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.

Even as Factory output grew in November 2024 due to the outsized output from the electronics sector, the performance came in under analyst expectations, which predicted a 9.7% growth, 1.2% more than the 8.5% depicted.

However, growth forecast continued to grow under lowered interest rate environment, with GDP growth expected to slow toward 2.6% from the 3.6% in 2024.

Higher uncertainty over US Economic policies especially trade tariffs after the Donald Trump’s election remains a key risk, alongside on going geopolitical tensions.

Weaker growth in the Chinese economy and rising domestic cost should also be factored in, potentially putting a drag on Singapore’s economy.

he index had rallied over 20% in 2024, with the immediate resistance around 3,850. The longer term uptrend remains intact with the 100d and 200d moving average still gradually slopping up.

The 20d moving average continues to point up, where prices are currently trading close to it, and continues to be above the 3,650 support.

Hot News (Click to read):

• Singapore factory output grows at faster pace of 8.5% in November (The Straits Times)

• Gold edges higher in holiday trade; eyes on US Federal Reserve’s 2025 plan (The Business Times)

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

Price has pullback 6% from the psychological level around 45,000, trading around the 100d moving average. It has broken below the 43,500 support, turning it to become the immediate resistance. Witnessing some short-term weakness as 20d moving average is heading downwards. Key support level to take note around 41,500.

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.

Longer term uptrend remains in tact as long as price is able to hold above key support around 5,700. 20d moving average has started to turn down with price testing the immediate support around 5,850. Psychological resistance to note is around 6,100 for now.

The 2025 US market is expected to reflect cautious optimism, shaped by stabilizing inflation and moderate economic growth.

The Federal Reserve's monetary policy will remain a focal point, with any rate adjustments influencing market sentiment.

Corporate earnings resilience, particularly in sectors like healthcare and tech, will play a crucial role, though geopolitical tensions and global trade dynamics could present headwinds. Overall, quality and selective growth opportunities are likely to dominate investment strategies.

• 10-year Treasury yield tops 4.6% before turning flat ahead of Christmas (CNBC)

• Trade policy following Trump's 2024 election victory (Reuters)

Singapore Stocks Spotlight

YZJ SHIPBLDG (BS6.SI)
Target Price: S$3.20

About YZJ Shipbldg

• YZJ Shipbuilding is one of the largest and most reputable shipbuilding companies globally, with a strong track record in constructing various types of vessels, including bulk carriers, containerships, and offshore vessels

• It operates across multiple segments, including shipbuilding, investments, shipping, and trading

Fundamental

• Yangzijiang’s improving corporate governance and pivot towards cleaner vessels such as dual-fuel containerships and gas carriers, which now account for ~70% of orderbook, could draw more interest from ESG funds

• YZJ’s yards are full through 2026 with an orderbook, expected to propel an earnings CAGR of over 20% in the next two years, driven by both revenue growth and margin expansion, as over 50% of its orderbook is made up of containership orders that command higher value and margins

Technical

• Price consolidated sideways since Aug 24 and finally broke above the 2.80 resistance in December 24, turning it to become a higher support

• All 3 MAs are heading upwards, indicating short-term and long-term trend alignment

• Current price is above trailing support line, suggesting uptrend is still intact

• Positive MACD above zero line

• As long as price is able to hold above immediate support around 2.80, potential upside target towards 3.20 - 3.50 range where we can see some profit-taking return first

CENTURION (OU8.SI)
Target Price: S$1.00

About Centurion

• Centurion Corp. Ltd engages in the ownership, development, and management of purpose-built accommodation assets. Operating through the following segments: Workers Accommodation, Student Accommodation, and Others. The Workers Accommodation segment offers dormitory accommodation and services for workers The Student Accommodation segment covers accommodation and services for students.

Fundamental

• New dormitory project expected to be completed by Dec 2024, where the rental rates are potentially higher, may see a increase in revenue

• Moderately demand growth is expected in 2024 which can cause rental rates to remain stable.

• The total demand from work permit holders in the construction, marine shipyard and process sector increased by 0.4% from 441,100 in Dec 2023 to 442,900 in Jun 2024

Technical

• Based on 100d and 200d MA, longer term uptrend remains intact with both still heading up

• Witnessing some short-term weakness as 20d MA starts to flatten out and head sideways, where we may see potential sideway consolidation between 0.88 - 1.00

• Immediate psychological resistance around 1.00, where we also saw a 1GT bearish signal a few weeks back

• Immediate support is around 0.880, where price broke above it and retested it in mid-Nov

• If price is able to breach and hold above psychological 1.00 level, potential upside target to be revised to 1.12 based on a range projection

SGX (S68.SI)
Target Price: S$14.00

About SGX

• Singapore Exchange Limited (SGX) owns and operates Singapore's Securities and Derivatives Exchange and related clearing houses.

• Singapore Exchange Limited also provides ancillary securities processing and information technology services to participants in the financial sector.

Fundamental

• SGX is likely to continue to benefit from expected increased market volatility in 2025

• Securities Daily Average Value (SDAV) increase which translates into more commissions and revenue may increased due to developments from the group to rejuvenate markets.

• Trading activity across multiple asset classes continue to accelerate in 2025

Technical

• Longer-term uptrend remains intact with both 100d and 200d MA still heading up, despite seeing some short-term weakness with the 20d MA gradually sloping downwards

• Immediate psychological resistance appears to be around 13.00 where we saw long upper shadows as sellers returned

• Temporary support around 12.00 -12.10, where we witness buying pressure, may consider to set price alert to accumulate on the dips

• If price is able to breach and hold firmly above 13.00, potential upside target towards 14.00

United States Stocks Spotlight

META PLATFORMS INC (META.NQ)
Target Price: US$680.00

About Meta Platform 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

• Meta's buyback pace is now one of the highest in this industry. Meta has invested $36 billion in buybacks in trailing twelve months and another $4 billion in dividends

• Consensus EPS growth estimate for 2025 is 12% and for 2026 it is 13%

• In the recent quarterly earnings, Meta reported 19% YoY revenue growth. This was possible due to 7% YoY growth in ad impressions and 11% YoY growth in average price per ad

Technical

• Both 100d and 200d MA are sloping up, suggesting longer term uptrend is still intact. However, 20d MA is starting to flatten out, indicating short-term weakness

• Price is currently whipsawing around the 600 psychological level, to monitor if able to hold above or below it

• Key resistance is around 640 for now, where we saw selling pressure returned in mid Dec

• Despite some retracement, price is still above trailing support

• If price can firmly hold above 600, first target towards 640, before revising higher towards 680, if price is able breach the key resistance

Recent News (Click to Read)

• Meta's AI Chatbot Nears 600 Million Monthly Users, Zuckerberg Says

• Instagram to make up more than half of Meta's US ad revenue in 2025, report shows

• Meta to invest $10 billion for Louisiana data center

ALPHABET INC (GOOGL.NQ)
Target Price: US$205.00

About Alphabet Inc

• American multinational technology company focusing on artificial intelligence, online advertising, search engine technology, cloud computing, computer software, quantum computing, e-commerce, and consumer electronics

Fundamental

• Google Cloud generated $11.353 billion in revenue (12.86% of total), which represents a 35% increase in Q3 2023

• Google has nearly 90% market share in the search engine business, and a key contributor to this is the Google Chrome browser, which helps drive traffic to the Google search engine

• Alphabet’s search business is the biggest contributor to their revenues, accounting for nearly 57% of their revenues in the first three quarters of 2024

Technical

• Short-term trend is strong as 20d MA is inclining upwards steeply, while longer-term trend based on 100d and 200d MA are bouncing off each other and playing catch-up

• Key support zone is around 175 - 180 due to the rising window gap up on 10 Dec 24

• Price is currently still trading above trailing support around 180, which is a potential level to accumulate on dips

• As long as price is able to hold above key support level, potential upside target towards 205 first

Recent News (Click to Read)

• Google CEO Pichai tells employees to gear up for big 2025: ‘The stakes are high’ (CNBC)

• Alphabet shares jump 6% after Google touts ‘breakthrough’ quantum chip (CNBC)

• Google's biggest bet is AI for search, investment chief says (Reuters)

COSTCO WHOLESALE CORP (COST.NQ)
Target Price: US$1,000.00

About Costco Wholesale Corp

• The leading warehouse club, Costco has 815 stores worldwide

• It sells memberships that allow customers to shop in its warehouses, which feature low prices on a limited product assortment

• Its product categories include food and sundries, hardlines, fresh foods, softlines, and ancillary

• Combining with operating efficiencies from volume purchase, it enable Costco to operate profitably at lower gross margins

Fundamental

• Latest earnings announcement show that Costco’s adjusted comparable sales had grew, consistently delivering higher numbers across 4 quarters

• Costco’s e-commerce business grew by 13.2% on an adjusted basis

• Membership fee income is the most profitable part of Costco’s business, and the majority of fee income would drop to the bottom line of their P&L.

Technical

• Longer-term uptrend remains intact as 100d and 200d MA are still heading up with no signs of reversal yet

• Witnessing some short-term weakness with 20d MA starting to point down, with a recent 1GT bearish signal on 27 Dec as price has broke below the trailing support line, as well as the 920 psychological support

• Price is currently testing the 100d MA, with key support level around 860 - 865

• If 20d MA continues to head downward with price unable to hold above 100d MA, likely to see more weakness and a potential sideway consolidation between 860 - 920 as seen in Aug - Nov 24

Recent News (Click to Read)

• Costco beats on earnings as e-commerce sales jump (CNBC)

• Costco Stock Split Seen As Retail Leader Flirts With $1,000 (Investor.com)

• 1 Major Risk in Buying Costco Stock Right Now (Motley Fool)

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