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.

The 3,650 resistance level continue to be intact where sellers are showing up as the index approach this level, with the 20d MA flattening, indicating prices have been moving sideways, however with the longer term uptrend still pointing up

The immediate support level being around 3,500 where previous was turned from a resistance to a support, price could continue to consolidate within the range of 3,500 to 3,650 before a breakout pattern appears

Potential upside target toward 3,800 if resistance level gives way forming a new all time high for the index, however caution should still be exercise especially if the 20d moving average is not able to regain its footing above the 3,500 level.

China pledge to “significantly increase” debt to revive its economy but it brought about doubts from investors regarding the size of the stimulus package, raising concerns over the longevity of the recent stock market rally.

Despite a cautious hiring outlook amid global trade tensions, economists remain optimistic about labor demand in service industries, bolstered by year-end hiring and a favorable economic forecast for Singapore in 2025.

Hot News (Click to read):

• Singapore’s total employment growth more than doubles in Q3, retrenchments dip (The Business Times)

• Singapore digital economy shrank 2.3% in 2023; efforts to help SMEs adopt generative AI underway: IMDA (The Business Times)

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

Price is pulling back to retest the 41,500 support level after reaching the 43,500 resistance level in mid October. If support is broken, we may potentially see more weakness back to the psychological 40,000 level.

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.

Likewise for SPX, index is also pulling back to retest the 5,670 level. Immediate psychological resistance remains at 6,000, while next key support level to take note is around 5,400.

Meanwhile, the U.S. election campaign continues to draw attention, with Vice President Kamala Harris and former President Donald Trump neck-and-neck in recent polling.

This close race is likely to add another layer of uncertainty and could drive further market fluctuations. Additionally, the past week’s jam-packed economic calendar, together with multiple big tech earnings resulted in some large movements in the market.

The U.S. market landscape is currently influenced by a steady rise in long-term bond yields, driven by reduced investor expectations for aggressive rate cuts from the Fed.

Concerns are also mounting around potentially higher budget deficits, especially if Donald Trump wins the presidential election, which has fueled the recent uptick in yields.

Hot News (Click to read):

• Morgan Stanley CEO says the era of zero interest rates and inflation ‘is over’ (CNBC)

• How the stock market is likely to react to the election outcome (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

GLD US$(O87.SI)
Target Price: US$265.00

About GLD US$

• ETF managed and marketed by State Street Global Advisors

• Designed to initially track the price of a tenth of a troy ounce of gold

Fundamental

• Gold provides a natural hedge against inflation and is generally regarded as a safe-haven investment

• Trading GLD shares in the secondary market or via a Trust may be lower than the costs associated with buying, storing and insuring physical gold in a traditional allocated gold bullion account

• Inverse relationship between gold prices and US dollar

• In view of Feds cutting interest rates, US dollar could potentially depreciate

Technical

• Immediate support looks to be around 247.50, which was previously the resistance where sellers returned as seen in Sep

• All 3 MAs are still heading up with bullish implications

• If prices pullback, potential accumulation on the dips near support zone

• As long as support holds, would not rule out more upside towards 265 - 270 where selling pressure could return

SATS (S58.SI)
Target Price: S$4.40

About SATS

• Top provider of gateway services and food solutions in Asia, dominates the in-flight catering and ground-handling services at Singapore's Changi Airport

• The Food Solutions segment provides in-flight and institutional catering, food processing, distribution services, and airline laundry services.

• The Gateway Services segment offers both airport and cruise terminal services

Fundamental

• Successfully repriced the contract of one of its major customers, SIA, which accounted for 17.3% of FY24 revenue.

• Potential additional revenue could be expected from cargo handling fees, directly affecting their bottom lines

• Cargo volumes have been steadily increasing,

• Management has continued to show that they are able to improve cost management and operating leverage

Technical

• Price recently broke and closed above the the 3.85 resistance level with a long bullish candlestick on 25 Oct

• Upward sloping channel support line remains intact with all 3 MAs heading higher

• Immediate resistance around 4.10 where selling pressure could return first as seen by the long upper shadow on 25 Oct

• If price can firmly break and hold above 4.10, to revise potential upside target towards 4.50

KEPPEL DC REIT (AJBU.SI)
Target Price: S$2.60

About Keppel DC REIT

• Keppel DC REIT is a real investment trust company, which engages in investing in real estate assets.

• Focusing on investment directly and indirectly in a diversified portfolio of income-producing real estate assets used mainly for data center purposes and real estate related assets, with an initial focus on Asia Pacific and Europe.

Fundamental

• Holding a high-quality portfolio of data centers in APAC and Europe, benefiting from strong demand in the sector and consistently high occupancy rates.

• Backed by a strong sponsor, KDCREIT has access to a pipeline of assets and development capabilities to expand its portfolio further.

• Potential acquisitions as interest rates stabilize, which could serve as a key growth catalyst.

Technical

• Uptrend reversal confirmation came in Aug when 100d crossed above the 200d MA

• Upward sloping channel support line remains intact with all 3 MAs heading higher

• Immediate resistance is around 2.30 and key support level around 2.10

• If price can recapture the 2.30 level, potential upside target towards 2.60, where prices tested this level multiple times back in late 2020 to early 2021

United States Stocks Spotlight

WALMART INC (WMT.NY)
Target Price: US$90.00

About Walmart Inc

• Walmart Inc. engages in the operation of retail, wholesale, other units, and eCommerce worldwide

• Operating through three segments: Walmart U.S., Walmart International, and Sam's Club

• Additionally, the company markets lines of merchandise under private brands, including Allswell, Athletic Works, Equate, and Free Assembly

Fundamental

• Walmart has seen significant expansion in its e-commerce sector, with 20% year-over-year growth and a 32% increase in its marketplace services.

• Walmart's initiatives in automation and digitalization, including AI-driven cost reductions and automating nearly 3,000 stores, have contributed to expanding operating margins and overall profitability.

• Largest market share in online grocery sales in the U.S. (around 27%) and is growing its high-margin advertising business, expected to reach $4 billion

Technical

• Uptrend is firmly intact as all 3 MAs are still heading upwards with no signs of reversals yet

• Price is approaching the 84 resistance level, where some selling pressure might return

• Immediate support is around 77 where buyers came in and price rebounded about 5% within 5 trading days

• Key psychological resistance looks to be around 90, where some profit-taking could happen

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY (TSM.NY)
Target Price: US$230.00

About Taiwan Semiconductor

• Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices

• Also offers customer support and engineering services

• Its products are used in high performance computing, smartphone, Internet of things, automotive, and digital consumer electronics

Fundamental

• Advanced process technologies and high demand for AI chips are expected to sustain nearly 30% annual revenue growth over the next few years​

• TSMC has redefined its role with Foundry 2.0, expanding into packaging, testing, and mask-making, increasing its addressable market while supporting higher

• With strong free cash flow and substantial investment in advanced nodes and overseas diversification, TSMC is well-positioned to address rising demand and geopolitical risks​

Technical

• Uptrend started firming up in Feb 2024 with all 3 MAs heading upwards

• Both short-term & longer-term trend are aligned

• Prices is currently retesting the support around 192 - 195

• If support is broken we may see more weakness back towards 160

• If buyers return and support holds, would not rule out more upside towards 230 where some profit-taking can occur

NETFLIX INC (NFLX.NQ)
Target Price: US$800.00

About Netflix Inc

• Netflix, Inc. engages in providing entertainment services.

• Offering activities for leisure time, entertainment video, video gaming, and other sources of entertainment.

• Providing its members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.

Fundamental

• Ad-supported tier is emerging as a key revenue stream, with live events expected to bring significant ad revenue growth

• Profit margins have been temporarily boosted by reduced content spending during the Hollywood writers' strike, but as these costs normalize, maintaining current earnings growth may ​be challenging

Technical

• Price has recently gapped up and broke the 730 resistance level on earning results, turning it to become the new higher support

• All 3 MAs are still heading up, with no signs of reversal yet

• 730 - 740 is near the new higher support level to potentially accumulate on the dips

• As long as price is able to hold firmly above new higher support, potential upside target towards psychological resistance around 800, where some selling pressure can return first

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