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.

Singapore's non-oil domestic exports contracted by 2.1% year on year in Jan 2025, following strong growth seen in November (3.4%) and December (9.0%), potentially due to the Lunar New Year slowdown, and weaker electronics and non-electronics shipments

The decline is expected to be temporary with expectations of rebounds in Februrary, furthermore, the US-China Tariff war could weigh on global trades.

Exports are expected to still grow between 1% to 3% in 2025.

Longer term uptrend continues, with the 3,900 level being tested, along side the 20d moving average still heading up up indicating that buying interest are still present at the moment.

With upside target being drawn to the psychological 4,000 level first if the 3900 level holds.

Hot News (Click to read):

• Data centre S-Reits report growth in latest results (Business Times)

• Singapore’s subdued IPO scene set for a rebound in 2025: analysts (Business Times)

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

The index had met with sellers once again around the 45,000 psychological resistance level, where prices had fallen toward the 43,000 support once more, with the 20d MA pointing down reaffirming near term weakness present.

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.

Similarly with recent sell downs across sectors the 20d MA had started to point down slightly, signaling weaker sentiments in the near term. Selling came in close to the 6,000 psychological level, the 5,800 level remains the next support where the index had seen buyers return previously.

The US Consumer confidence dropped 7 points, its largest decline since Aug 2021, falling to 98.3 in Feburary lower than the expected 102.5, this was on the backs of higher tariff concerns.

Expectation of rising inflation once again can be seen throughout the markets as it jumped to 6% the highest since May 2023, from the expected 5.2% last month.

Key data being announced continue to be driving the market as we head into March, and we should continue to exercise caution while volatility remains high.

Hot News (Click to read):

• February consumer confidence posts biggest drop since 2021 in latest sign of slowing economy (CNBC)

• Trump policy concerns send US consumer confidence plummeting to eight-month low (Reuters)

Singapore Stocks Spotlight

DBS Bank (D05.SI)
Target Price: S$49.00

About DBS Bank

• DBS Bank, Singapore’s largest bank, was founded in 1968 as the Development Bank of Singapore and has grown into a leading financial institution in Asia, operating in 18 markets.

• Focusing on consumer banking, institutional banking, and treasury services, with a strong presence in Greater China, Southeast Asia, and South Asia.

• Recognized as one of the world’s safest and best banks,

Fundamental

• Record net profit of SGD 11.4 billion for 2024, an 11% increase from the previous year. Performance was driven by a 10% rise in total income to SGD 22.3 billion, attributed to an expanded net interest margin, record-high fee income, and a rebound in markets trading income.

• Return on equity (ROE) remained strong at 18.0%, with a stable cost-income ratio of 40%

• The bank's liquidity position is robust, with a liquidity coverage ratio of 147% and a net stable funding ratio of 115% as of December 2024.

• CEO Piyush Gupta is set to retire in March 2025 after a 16-year tenure. He will be succeeded by Deputy CEO Tan Su Shan, marking the first internal promotion to CEO in the bank's history.

• DBS Bank's strong financial performance, strategic capital returns, and stable liquidity underscore its solid fundamentals and position it well for future growth.

Technical

• Price has recently broken above the new higher support around 46

• Price was previously consolidating sideways between 43 - 46, before we started to see some short-term strength returning in early Feb 25

• Currently, both shorter & longer term trend are aligned and heading in the same direction

• Key support still remains around 43, where it was tested multiples time since Nov 2024

• 1GT bullish signal still playing out with no bearish signal yet

• As long as price is able to hold firmly above new higher support, would not rule out more potential upside towards higher targets around 49 - 50

SINGTEL (Z74.SI)
Target Price: S$3.70

About Singtel

• Singapore Telecommunications Limited (Singtel) is a leading communications technology group in Asia, offering a diverse range of services across multiple markets.

• Singtel operates through several key segments: Group Consumer, Group Enterprise, Group Digital Life

• The company has significant investments in regional associates, holding stakes in operators across India, Indonesia, the Philippines, and Thailand.

Fundamental

• Singtel reported a net profit of S$1.23 billion, a 42% decrease from the previous year, primarily due to the absence of a one-time gain from the prior year's Telkomsel merger.

• Company achieved a 27% increase in earnings before interest and tax (EBIT)

• The company's subsidiaries, NCS and Nxera, are pivotal in advancing AI adoption and expanding data center capabilities, with new facilities expected to commence operations by mid-2025.

• Company's proactive approach to innovation and market expansion positions it well for future growth.

Technical

• Price is currently retesting the 3.30 level again after consolidating sideways since Sep 2024 between the range around 2.95 - 3.30

• 20d MA is heading up, suggesting strong short-term strength. However, both longer term MA (100d and 200d) are starting to flatten out, possibly suggesting sideway price action again

• If price is able to regain and hold firmly about the 3.30 level, would not rule out more upside towards 3.70

• If price is falls back into the consolidation range, to take note of key support around 2.95. If this key support is broken, have your stop loss plan in place as may see more weakness returning

Centurion (OU8.SI)
Target Price: S$1.10

About Centurion

• Centurion Corporation Limited is a Singapore-based investment holding company specializing in the ownership, development, and management of accommodation assets.

• Company's primary focus is on workers' and student accommodation, operating under the "Westlite" and "dwell" brand names, respectively

• Centurion's geographical presence spans Singapore, Malaysia, Australia, the United Kingdom, and other countries.

Fundamental

• Centurion maintains a dividend yield of 7.1%, with a payout ratio of 14%, reflecting a commitment to returning profits to shareholders while retaining earnings for future growth.

• Company's return on equity (ROE) was 27.98%, indicating efficient utilization of shareholders' equity.

• The company's efficient operations and robust financial health position it favourably within the market.

Technical

• Price is currently testing the psychological level around 1.00

• All 3 moving averages are heading up, looking positive, indicating that short-term & long-term uptrend is still intact

• A doji was observed near the 1.00 level, suggesting buying support is present

• As long as price is able to hold firmly above 1.00, the first upside target is around 1.10. Target to be revised higher if 1.10 gives way

United States Stocks Spotlight

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

About Costco Wholesale Corp

• 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

• In the fiscal year 2024, Costco reported net sales of $249.6 billion, a 5.0% increase from the previous year.

• Membership fees contributed $4.8 billion to the total revenue of $254.5 billion. Net income for the year was $7.37 billion, with a diluted earnings per share (EPS) of $16.56.

• In September 2024, Costco announced an increase in membership fees, the first since 2017, despite this, the company maintained a high membership renewal rate of 92.9% in the U.S. and Canada during the fourth quarter.

Technical

• Price has pulled back slightly to retest the 1000 psychological support in mid-Feb

• Both short & longer term uptrend remains firmly intact as all 3 MAs are still heading up and price is still trading above the trailing support

• Potential accumulation on the dips near the support zone and to take note of the immediate resistance around 1080 where selling pressure could return

• If price is unable to hold above 1000, may see more weakness returning back to the 920 - 925 levels

Recent News (Click to Read)

• Is Costco Wholesale Stock a Buy, Sell, or Hold in 2025? (Motley Fool)

• Costco (COST) is an Incredible Growth Stock: 3 Reasons Why (Yahoo Finance)

• Costco Wholesale Corporation's (NASDAQ:COST) Stock's On An Uptrend: Are Strong Financials Guiding The Market? (Yahoo Finance)

WALMART INC (WMT.NY)
Target Price: US$105.00

About Walmart

• Walmart Inc. is a leading multinational retail corporation headquartered in Bentonville, Arkansas

• The company serves approximately 255 million customers weekly, offering a wide range of products and services at everyday low prices

• Walmart's strategic focus on low prices, technological innovation, and expanded services positions it well to maintain its leadership in the global retail market

Fundamental

• In fiscal year 2024, Walmart reported revenue of $648 billion, a 6% increase from the previous year

• The company's U.S. segment accounted for $441.8 billion, representing 69% of total net sales, while international operations contributed $114.6 billion, or 18% of consolidated net sales

• Walmart has invested heavily in e-commerce and technology to enhance its omnichannel capabilities. E-commerce now accounts for 18% of the company's revenue, reflecting significant growth in online sales

Technical

• Price has reached a peak around 105 in mid-Feb and subsequently has gapped down and pullback below to retest the 96 level

• Short-term trend based on 20d MA has started to flatten out, however both longer term trend (100d and 200d) is still looking decent

• With a 1GT bearish signal in sight and price trading below the trailing resistance, it signals that there could be more selling pressure

• If price is unable to hold above the 88 psychological support level, may want to be more cautious with a stop loss plan especially with signs of the longer term trend turning down

Recent News (Click to Read)

• Walmart Is Retail King Again. Can It Keep the Crown? (Wall Street Journal)

• Can anything stop Walmart’s rally? Maybe high expectations, some analysts say. (MarketWatch)

• Walmart Reports Third Quarter Results (Walmart)

APPLE INC (AAPL.B.NQ)
Target Price: US$260.00

About Apple Inc

• Apple Inc. is a leading multinational technology company headquartered in Cupertino, California.

• Apple has evolved from a personal computer pioneer into a diversified technology giant, renowned for its innovative consumer electronics, software, and services.

Fundamental

• In fiscal year 2024, Apple reported revenue of $391 billion, with net income of $93.7 billion. The iPhone remained the company's flagship product, contributing $201 billion to total revenue.

• Apple maintains a robust net profit margin of 29.23%, ranking first in the Computer Hardware industry

• Apple continues to invest in emerging technologies, including artificial intelligence (AI).

• While competitors heavily invest in AI infrastructure, Apple adopts a measured approach, potentially leading to higher free cash flows and stability

Technical

• Key support level since Q4 2024 is around 220, where we saw price rebounded from multiple times

• 20d MA has also recently broke above the 100d MA again, signaling short-term strength

• Both longer term trend (100d and 200d MA) is still heading up, aligning with short-term direction

• Immediate resistance to note around 260, where selling pressure returned with a 1GT bearish signal shortly after in late Dec last year

• If price is able to break and firmly hold above 260, target to be raised to 300.

Recent News (Click to Read)

• Why Apple may get the ‘last laugh’ in AI as rivals double down on spending craze (MarketWatch)

• Apple: I Understand Why Warren Buffett Sold Shares (SeekingAlpha)

• Alibaba Won’t Solve All of Apple’s China Problems (Bloomberg)

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