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.

After six months of cooling, Singapore’s core inflation picked up in April, rising to 0.7% from 0.5% in March. Marking the first year-on-year increase since September last year.

According to a joint statement from the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI), the uptick was mainly due to higher prices for services and food, which outweighed the drop in retail goods and other items.

Month-on-month, core inflation rose by 0.5%, while overall inflation remained steady at 0.9%, thanks to lower costs for accommodation and car-related expenses.

The authorities also said that imported inflation should stay moderate, as global oil prices are likely to soften due to slower demand and sufficient supply. Food prices worldwide are also expected to remain stable.

The STI has recovered strongly from its sharp drop in mid-April 2025, rallying back above its 20d, 100d, and 200d moving averages.

Consolidating under the 4,000 key psychological resistance once again after testing it in Mar, with the immediate support of 3,800 currently being respected.

A break above the 4,000 level could see upside targets being drawn to the 4,200 level first where the STI will embark on a newer higher.

• Singapore downgrades 2025 GDP forecast to 0%-2% as US-China tariff war weighs on global growth (The Straits Times)

• Singapore’s core inflation rises to 0.7% in April, first increase after six months (Channel News Asia)

United States

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

Weakness came in once again as the index met with sellers once again as it approached the 43,000 level, where the 41,000 support continues to hold.

20d MA still indicates positive momentum although the index looks to be heading toward the 41,000 level and 100d MA crossed below the 200d MA indicating selling pressure in the longer term.

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.

Currently holding above the 5,800 support, potential upside toward 6,200 could resume with further confirmation from all 3 MAs.

Moody’s, the major credit rating agency cut the United States’ sovereign credit rating on Friday by one notch to AA1 from AAA, signaling potential higher borrowing cost could be in the horizon

With no rate cuts being effected yet in 2025, and tariffs slowing growth and boosting inflation, concerns about tariffs and the U.S. debt burden are raising questions about whether Treasury securities are still a safe-haven asset for global investors.

Although the Fed’s March projections indicated two 25-basis-point cuts in 2025, we should start to monitor to see if market sentiments have started to shift.

Hot News (Click to read):

• 30-year Treasury bond yield wavers near key 5% level

• Trump delays 50% tariffs on EU to July 9 (CNBC)

Singapore Stocks Spotlight

ST ENGINEERING (S63.SI)
Target Price: S$8.00

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

• Commercial Aerospace revenue grew 12% to S$4.38 billion. EBIT increased by 19% to S$400.2 million, driven by higher sales in Engine MRO, nacelles, composite panels, and freighter conversions.

• Defence & Public Security revenue rose 16% to S$4.94 billion. EBIT climbed 12% to S$636.4 million, with significant contributions from Digital Systems & Cyber, Land Systems, and Defence Aerospace

• Urban Solutions & Satcom Revenue slightly increased to S$1.96 billion. EBIT improved to S$39.9 million, aided by Urban Solutions and reduced losses in the Satcom business

• Order Book stood at S$28.5 billion as of December 31, 2024, with approximately S$8.8 billion expected to be delivered in 2025.

Technical

• Uptrend remains firmly intact with all 3 moving averages heading higher

• New immediate higher support around 7.50 has been found

• Price is still respecting the uptrend, indicated by the rising trailing support line

• As long as new higher support holds, potential upside target towards 8.00 psychological level first

• 1GT Bullish signal from 23 Jan 25 is still playing out with no signs of exit yet

SEMBCORP IND (U96.SI)
Target Price: S$7.20

About Sembcorp Ind

• Sembcorp Industries Ltd (SGX: U96) is a leading energy and urban solutions provider based in Singapore, with operations across Asia and key global markets.

• The company is rapidly transitioning towards renewables, supported by its growing portfolio in solar, wind, and energy storage.

Fundamental

• Achieving a net profit of S$1.01 billion in FY2024, marking a 7% year-on-year increase, driven by strong performance in the gas and related services segment.

• Currently possesses a gross installed renewables capacity of 12.0GW, comprising 61% of its energy portfolio. The company aims to expand this to 25GW by 2028, reinforcing its commitment to sustainable energy solutions.

• Acquired a 30% stake in Senoko Energy for S$96 million, enhancing its capabilities in Singapore's energy transition and expanding its power generation portfolio.

• Raised its total dividend payout by 77% to 23.0 cents per share for FY2024, reflecting confidence in its earnings visibility and commitment to shareholder returns.

Technical

• Long-term uptrend remains intact with both 100d and 200d MA sloping upwards

• Price seems to have found a new higher support around 6.50, which prices has consolidated sideways for a few weeks since May, which indicates buying interest

  • Note that sideway consolidation within a long-term uptrend is a good thing as it ensures that the uptrend is sustainable

• Potential upside target towards 7.20, as long as the 6.50 support is holding firm

• 2 consecutive 1GT Bullish signals still playing out

SINGAPORE AIRLINES LTD (C6L.SI)
Target Price: S$7.50

About Singapore Airlines Ltd

• Singapore Airlines Ltd. engages in the provision of passenger and cargo air transportation services

• Operating through the following segments: Full-Service Carrier, Low-Cost Carrier, Engineering Services, and Others

Fundamental

• Reported record financial results for the fiscal year ended 31 March 2025, driven by robust passenger demand and a significant one-off gain from the merger of its Indian joint venture, Vistara, with Air India

• S$19.54 billion, a 2.8% increase year-over-year, marking the highest in the airline's history

• S$2.78 billion, up 3.9% from the previous year, bolstered by a one-time non-cash accounting gain of S$1.1 billion from the Vistara-Air India merger

• Passenger Load Factor (PLF) reached 86.6%, with Singapore Airlines achieving 86.1% and its low-cost subsidiary Scoot at 88.4%

• Cargo revenue increased by 4.4%, driven by strong demand for e-commerce and perishables, as well as disruptions in Red Sea shipping. However, freight yields declined by 7.8% due to intensified competition

Technical

• Price has recently broke above the key psychological 7.00 level, turning it to become a support

• Both longer-term MA has also started to slope up, aligning with the shorter-term MA

• 2 consecutive 1GT Bullish signal still playing out with no exit signals yet

• As long as price is able to firmly hold above the 7.00, would not rule out more potential upside towards 7.50, where some profit-taking could happen

  • Note that 7.10 was the multi-year high, if price is able to stabilize above this level, it is likely to see more strength and interest returning

United States Stocks Spotlight

VISA INC (V.NY)
Target Price: US$400.00

About Visa Inc

• Visa, Inc. engages in the provision of digital payment services. It also facilitates global commerce through the transfer of value and information among a global network of consumers, merchants, financial institutions, businesses, strategic partners, and government entities.

• It offers debit cards, credit cards, prepaid products, commercial payment solutions, and global automated teller machines.

Fundamental

• Net Revenue arrived at $9.6 billion, marking a 9% year-over-year increase, while Payments Volume Increased by 8% year-over-year.

• Visa completed the acquisition of Featurespace Limited for $946 million. Featurespace specializes in real-time AI payments protection technology, enhancing Visa's fraud prevention capabilities.

• Cross-Border Volume (excluding intra-Europe) grew by 16%, reflecting strong international travel demand.

• Processed Transactions rose by 11%, indicating higher transaction activity.

• Value-Added Services Revenue: Increased by 18% to $2.4 billion, driven by consulting, marketing, and risk solutions.

Technical

• Both long-term and short-term trend are aligned and sloping upwards

• Price is currently testing the immediate resistance at around 360

• Immediate support remains to be around 320, for potential accumulation on dips

• If 360 can be firmly broken, would not rule out more upside towards psychological 400 level

• 1GT Bullish signal is still in sight with no exits yet

Recent News (Click to Read)

• Visa (V) Q2 2025 Earnings Call Transcript (Fortune)

• Visa, Mastercard fees probe widens as EU antitrust regulators look into market power (Reuters)

• Visa Earnings: Results Hold Steady, No Signs of Consumer Spending Weakening Yet (Morningstar)

INTERNATIONAL BUSINESS MACHINE CORP (IBM.NY)
Target Price: US$300.00

About International Business Machines Corp

• International Business Machines Corp. is an information technology company, which engages in the provision of integrated solutions that leverage information technology and knowledge of business processes.

• It operates through the following segments: Software, Consulting, Infrastructure, Financing, and Others.

Fundamental

• IBM's generative AI business expanded by over $1 billion in the quarter, totaling $6 billion since inception. Red Hat's OpenShift platform achieved a 23% year-over-year growth, reaching $1.5 billion in annual recurring revenue.

• Revenue grew to $14.54 billion, up 1% year-over-year, slightly above analyst estimates of $14.39 billion.

• IBM reaffirmed its full-year guidance of at least 5% revenue growth in constant currency and approximately $13.5 billion in free cash flow. The company expects second-quarter revenue between $16.4 billion and $16.75 billion.

Technical

• Price is currently testing the immediate resistance around 265 - 270

• Uptrend is still firmly intact with all 3 moving averages heading higher

• The immediate support zones appears to be around 253 where prices quickly recaptured after dipping below it in early April

• If price is able to break and hold firmly above 270, potential upside targets towards psychological 300, where some profit-taking could return

Recent News (Click to Read)

• IBM (IBM) Q1 2025 Earnings Call Transcript (Fortune)

• IBM to invest $150 billion in US over next five years to aid quantum push (Reuters)

• IBM Just Gave Nvidia Stock Investors Terrible News (MotleyFool)

COSTCO WHOLESALE CORP (COST.NQ)
Target Price: US$1,080.00

About Costco Wholesale Corporation

• Costco Wholesale Corporation is a leading American multinational corporation operating a chain of membership-only warehouse clubs

• Costco has expanded its footprint to 890 warehouses worldwide as of 2024, including locations in the United States, Canada, Mexico, Japan, the United Kingdom, and other countries

• Costco's business model centers on offering a wide range of merchandise at low prices to its members

Fundamental

• Revenue came in at $63.72 billion, a 9% increase year-over-year, surpassing analyst expectations of $63.13 billion.

• Net Income increased slightly $1.79 billion, or $4.02 per diluted share, compared to $1.74 billion, or $3.92 per share, in Q2 2024.

• Membership Fees also grew to $1.19 billion, up 7% year-over-year, bolstered by a recent fee increase.

• Costco plans to open 28 new warehouses in fiscal 2025, including 15 in the U.S., 3 in Canada, and 7 in other international markets.

Technical

• All 3 moving averages are gently sloping upwards, suggesting that uptrend is still intact

• Price is currently testing the 1000 psychological level

• As long as the 1000 level is sustained and price is still respecting the trailing support, potential upside targets towards 1080 first, where we saw selling pressure returned in Feb

• Key support to note would be around 880, where price rebounded from in Apr

Recent News (Click to Read)

• Costco Wholesale Corporation Reports Second Quarter and Year-To-Date Operating Results For Fiscal 2025 and February Sales Results (Globenewswire)

• Is Home Depot or Costco the Better Stock to Buy Right Now With $1,000? (MotleyFool)

• Costco rolls out buy now, pay later for big online purchases through Affirm (Fox Business)

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