Hello everyone,
As earnings season wraps up, the results have been broadly encouraging corporate fundamentals are holding up better than many had feared, giving investors a cautious reason for optimism heading into the second half of 2026. Yes, inflation remains sticky and rate cut timelines continue to be pushed back, but resilient earnings in the face of uncertainty is precisely the kind of signal that separates noise from trend.
In this month's newsletter, we will break down where the strength from earnings season is concentrated, which names are building on their momentum, and how to position as markets head into the second half of 2026.
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 June, with the STI pushing to new highs on the back of strong momentum. The banking sector has been the standout driver, with the major local banks delivering robust earnings through the season, reinforcing confidence in the broader market.
Inflation remains contained within the 1–2% range, allowing MAS to maintain its current policy stance, while the overall growth outlook for 2026 remains supported by steady domestic consumption and recovering external demand.
Looking ahead, the focus will be on whether the current momentum can be sustained as markets navigate a higher-for-longer rate environment globally. With corporate earnings holding up and capital continuing to flow into quality names, the STI appears well-supported at current levels, though investors would do well to remain selective as valuations on certain counters begin to look more stretched.
The STI has reached an ATH (all-time-high) recently around 5,100, where selling pressure returned to push price back down to retest the 5,000 psychological level. Nevertheless, longer-term uptrend remains firmly intact with both 100-day (100d) and 200-day (200d) MA still heading up.
With price consolidating sideways since the start of 2026 and the recent breakthrough of 5,000 to 5,100 triggered a new 1GT Bullish signal, suggesting strong buying interest in the Singapore market.
Note that a pullback is perfectly normal, as long as price continue to hold firmly above the trailing support, forming higher lows, STI uptrend remains firm.
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.
DJI has rebounded very strong since April low of 45,000, breaking past the 48,000 and is now currently testing the 50,500, with a second consecutive 1GT Bullish signal. Longer-term MAs (100d & 200d) are gently sloping upwards, aligning with the steep incline of 20d MA, suggesting uptrend in play. If price is able to hold firmly above 50,500 level, market may potentially see more strength towards 52,000.
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.
For SPX, the immediate support looks to be around 7,500, where buyers returned on the dip. At the time of writing, SPX appears to be making an ATH once again, pushing past 7,500. 2 consecutive 1GT Bullish signals are still in play and uptrend remains firmly intact, with next potential upside target towards 7,700.
The U.S. market continues to grind higher heading into June, though the rally remains selective rather than broad-based. Large-cap technology names have been the primary engine of strength, buoyed by a strong earnings season where several major players delivered results well ahead of expectations. AI-driven demand continues to be the dominant narrative, with cloud, semiconductor, and infrastructure names attracting significant capital inflows.
The key question looking ahead is whether this momentum can continue to carry the broader market, or whether wider participation is needed to sustain the rally. Quality names with clear earnings visibility remain the ones to watch.
Hot News (Click to read):
Singapore Stocks Spotlight
OCBC BANK (O39.SI)
Target Price: S$24.00
OCBC Bank (TradingView)
1GT Bullish Entry Signal Appeared on 13 May 26, No Exit Signal Yet
About OCBC Bank
Oversea-Chinese Banking Corporation (OCBC) is one of Singapore's largest financial institutions, with a strong presence across Southeast Asia and Greater China
The group operates across consumer banking, corporate banking, wealth management, and insurance, with its insurance arm Great Eastern and private banking unit Bank of Singapore forming key pillars of its franchise. OCBC is also in the process of acquiring HSBC's Indonesia International Wealth and Premier Banking business, further deepening its regional footprint
Fundamental
OCBC reported a robust Q1 2026 with net profit of S$1.97B, up 13% sequentially and 5% year-on-year (YoY), driven by record non-interest income and disciplined cost management
NIM compressed by 29 basis points to 1.91% in FY2025, with net interest income down 6% YoY to S$9.2B, partially offset by a 9% rise in customer loans in constant currency terms
Non-interest income continues to be the key growth engine, with wealth management, treasury customer flows, and insurance all contributing strongly
CET1 ratio stands at a healthy 15.2%, underpinning confidence in maintaining guidance and executing on strategic growth initiatives
Dividend yield currently sits at approximately 3.6%, supported by a consistent capital return track record
Technical
Price has recently broke out of its sideway consolidation between 21.50 - 22.50 with a second 1GT Bullish signal, suggesting strong buy interest
Uptrend remains firmly intact with all 3 MA heading up nicely
As long as price continues to hold above trailing support (TS), uptrend structure is still valid and strong with higher consolidation phases
Price has also reached an ATH last week and price has started to pull back towards the immediate support around 22.50, where potential accumulation on the dips could happen
Immediate upside target towards 24.00 psychological level first, where some selling pressure could return
SINGAPORE EXCHANGE (S68.SI)
Target Price: S$24.00
Singapore Exchange (TradingView)
1GT Bullish Entry Signal Appeared on the 20 May 26, no exit signal yet
About Singapore Exchange
Singapore Exchange (SGX) is Singapore's sole integrated exchange, offering a multi-asset platform across equities, derivatives, fixed income, currencies, and commodities. SGX has evolved into a regional gateway for Asian markets, particularly through its strong derivatives franchise in equity indices, FX, and commodities
The group generates revenue from multiple streams including securities trading and clearing, derivatives trading, listings, and market data services
Fundamental
SGX delivered record revenue and profit in FY2025, with revenue rising 11.7% to S$1.298B and net profit after tax growing 15.9% to S$610M, driven by broad-based growth across segments
Equities cash revenue surged 19% while derivatives daily average volume increased 17.2%, and the FX business saw a remarkable 28% rise in average daily volumes to US$143B
Trading and clearing fees remain the backbone of revenue, with derivatives contracts averaging 1.1 million daily in early 2026, while data and connectivity services contribute a further 25% of revenue, providing stable recurring income
SGX's multi-asset strategy, expanding into FX, commodities, and innovative products such as crypto perpetual futures and tailored index products, reduces reliance on traditional equities and positions it well to capture demand from Asia's growing wealth management needs
The Board has committed to a steady dividend increase of S$0.0025 every quarter from FY2026 to FY2028, reflecting disciplined capital allocation and confidence in sustained earnings growth
Technical
Price was previously capped under the 20.00 level and managed to break above this level in early April
Price continues to show strength and recently reached an all-time high of 23.00, which is also a psychological resistance level
Immediate support could be found around the 22.00 psychological level
Short-term and long-term strength remains firmly intact with all 3 MAs heading higher
Supported by 2 consecutive 1GT Bullish signals that remain in play
If buying interest continues to build, it would be constructive to see a new higher consolidation range between 21.00 and 22.00, providing a stronger base for a more sustainable uptrend.
SHENG SIONG (OV8.SI)
Target Price: S$3.20
Sheng Siong (TradingView)
1GT Bullish Entry Signal Appeared on 08 Apr 26, No Exit Signal Yet
About Sheng Siong
Sheng Siong Group is one of Singapore's largest supermarket chains, operating a wide network of retail stores offering live, fresh, and chilled produce, dairy products, pantry staples, packaged foods, and essential household merchandise
Beyond its core Singapore operations, the group also operates stores in Kunming, China, and runs Sheng Siong Online, its e-commerce grocery platform
As a consumer staples play, the group offers investors a defensive earnings profile anchored by consistent demand for daily essentials.
Fundamental
Sheng Siong delivered a strong Q1 2026, reporting revenue of S$452.8M and net income of S$43.21M, up from S$402.97M and S$38.57M respectively a year earlier, reflecting healthy top and bottom line growth
Earnings per share from continuing operations improved to S$0.0287, highlighting enhanced profitability on a per-share basis compared with the prior-year quarter
Full year 2024 revenue came in at S$1.43B, an increase of 4.46% year-on-year, demonstrating consistent and steady growth momentum
The stock currently trades at a P/E ratio of approximately 29.76x, with a dividend yield of around 2.30%, underpinned by a consistent quarterly dividend payout track record
Year to date share price return stands at 15.21%, with a five-year total shareholder return of 134.99%, reflecting momentum that has built steadily rather than in short bursts
Technical
Immediate psychological support is around 3.00, where multiple candlestick with lower shadows are present, indicating buying interest
On the other hand, resistance appears to be around 3.20, whereby candlesticks are reflecting long upper shadow, suggesting selling pressure
Note that price has also been consolidating in the short-term from 3.00 to 3.20 range since April, with 20d MA moving sideways
Longer-term uptrend remains intact with 100d & 200d MAs gently heading upwards, together with two 1GT Bullish signals still playing out
If price is able to break and hold firmly above 3.20, targets could be raised higher towards 3.40
United States Stocks Spotlight
WESTERN DIGITAL CORPORATION (WDC.NQ)
Target Price: US$600.00
Western Digital Corporation (TradingView)
1GT Bullish Entry Signal Appeared on 17 Mar 26, No Exit Signal Yet
About Western Digital Corporation
Western Digital is a global provider of data storage solutions, specialising in hard disk drives (HDDs) and enterprise storage systems used across cloud infrastructure, data centres, and consumer devices
Following the separation of its NAND flash business, the company is now a pure-play HDD provider, with a strong focus on high-capacity storage for hyperscalers and cloud providers
Fundamental
WDC delivered an outstanding Q3 FY2026, with revenue of US$3.3B, up 45% YoY, driven by strong demand across all end markets and an improved pricing environment, while EPS came in at US$2.72, almost double compared to a year ago
HDD capacity is fully committed through 2026, with AI and hyperscale demand continuing to boost the storage outlook and pricing power, with analysts maintaining favourable ratings and raising price targets following the results
Q4 revenue guidance is anticipated at US$3.65B, reflecting approximately 40% YoY growth at the midpoint, with gross margins expected between 51% and 52% and non-GAAP EPS projected at US$3.25
The quarterly dividend was raised 20% to US$0.15 per share, signalling management's confidence in the company's sustained financial strength and commitment to shareholder returns
Technical
Uptrend is firmly intact since Aug 2025 and have been rising steadily, with a period of significant sideway consolidation from the start of 2026 to Apr this year between 240 - 320
Subsequently, price break out upwards, found new higher supports along the way, and reached a recent ATH around 546 last week, with the immediate support around 520 - 525
With the price range from May 2026 high to the dip, as long as price continue to hold firmly above the new higher support, the next potential upside target could be projected to around the psychological 600 level
Recent News (Click to Read)
TAIWAN SEMICONDUCTOR MANUFACTURING (TSM.NYSE)
Target Price: US$450.00
Taiwan Semiconductor Manufacturing (TradingView)
1GT Bullish Signal Appeared on 24 Apr 26, No Exit Signals Yet
About Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing Company (TSMC) is the world's largest and most advanced pure-play semiconductor foundry, manufacturing chips for some of the world's most prominent technology companies including Nvidia, Apple, and AMD
As the dominant provider of leading-edge process technologies, TSMC sits at the very heart of the global AI infrastructure buildout, with its advanced nodes powering everything from AI accelerators to high-performance computing systems
Fundamental
TSMC reported Q1 2026 consolidated revenue of US$35.90B, up 40.6% YoY, with net income rising 58.3% and gross margin expanding to 66.2%, while operating margin reached 58.1% and net profit margin came in at 50.5%
Advanced technologies at 7nm and below accounted for 74% of wafer revenue, with 3nm nodes contributing 25%, reflecting robust and accelerating demand from HPC and AI applications
Management raised its full-year 2026 revenue growth outlook to above 30% YoY, and guided Q2 revenue to US$39.0–$40.2B, representing approximately 10% sequential growth
TSMC now projects the global semiconductor market to surpass US$1.5T by 2030, with AI and high-performance computing expected to drive more than half of total industry demand, reinforcing the company's long-term structural position
Technical
Price has recently broke out upwards from its short-term sideway consolidation (range from 390 - 420) over the past month, turning the 420 resistance level to a new higher support
If price pull back to re-test the previous support around 390, one could also set alerts to potentially accumulate on dips near support zone
Uptrend remains firmly intact with all 3 MAs heading up, with two 1GT Bullish signals still in play
As long as price is able to continue holding firmly above new higher support, potential upside target can be drawn towards 450
Recent News (Click to Read)
HOWMET AEROSPACE (HWM.NYSE)
Target Price: US$270.00
Howmet Aerospace (TradingView)
1GT Bullish Entry Signal Appeared on 7 May 26, No Exit Signal Yet
About Howmet Aerospace
Howmet Aerospace is a leading U.S.-based manufacturer of advanced engineered components for the aerospace and transportation industries
The company specialises in high-performance turbine blades, structural components, aerospace fasteners, and forged aluminium wheels
Its business is largely tied to the commercial aerospace cycle, particularly new aircraft builds and aftermarket demand, as well as defence aerospace and industrial gas turbines
Fundamental
Howmet delivered a record Q1 2026, with revenue up 19% YoY to US$2.31B, EBITDA up 32% to US$740M with margins expanding 320 basis points to 32%, and adjusted EPS up 42% to US$1.22, all exceeding the high end of guidance
Commercial aerospace revenue grew 20% year-on-year, with engine spares sales surging 48% in the quarter, reflecting strong aftermarket demand as airlines continue restoring and upgrading fleets
Free cash flow came in at a record US$359M for a first quarter, supporting US$300M in share repurchases, while the company also completed the US$1.8B CAM aerospace fasteners acquisition in April, further deepening its position in the aerospace supply chain
Management raised full-year 2026 revenue guidance to a baseline of US$9,650M, reflecting continued confidence in demand across aerospace, defence, and gas turbine end markets
Technical
Price has recently gap up after the recent earnings, attempting to break and hold above the 270 resistance
After holding above 270 level for about one week, bears took over and price dipped back lower to test the 250 psychological support level
Uptrend remains firm with all 3 MAs heading higher, together with two 1GT Bullish signals
Immediate upside target back towards 270 resistance first, and target can be revised higher towards psychological 300, once 270 becomes a firm new higher support
Recent News (Click to Read)
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