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.

Economists expect 2% - 3% growth this year, up from earlier estimates, signaling domestic resilience. However, note that Geopolitics, U.S. rate changes, inflation surprises, or global growth slowdowns remain tail risks.

Meanwhile, SGX launches a new index to track non-STI listed stocks, aiming to shine a light on midcaps and boost overall market depth.

The index has been holding firmly above 4150 since late July and it has been retested in August, where buying pressure returned.

All 3 moving averages are still heading upwards indicating that both short-term and long-term uptrend remains firmly intact, with a 1GT bullish signal still playing out.

Price has recently formed an all-time-high, and it is currently testing the 4400 psychological resistance. If this level is firmly broken, potential upside target towards 4500, where some profit-taking could return.

Optimism is building around further interest rate easing globally, aided by weak U.S. data and dovish signals. Singapore’s GDP growth forecasts was also lifted.

• S’pore can focus on opportunities in a changing world to boost economic growth to 3%-4%: DPM Gan (The Straits Times)

• SGX launches two new indexes to boost investor demand and interest in Singapore stock market (The Straits Times)

United States

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

DJI has been sitting comfortably above the 45,000 level since late August. With the 100d MA crossing above 100d MA in early September, it brings about positive implications for the longer-term uptrend. Immediate resistance remains at around 47,000, where selling pressure could be 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.

SPX is currently on its way to make a new high, while testing the 6,700 level. Price has been respecting the trailing support since mid-August, with a 1GT Bullish signal still playing out. The next target in sight could be around psychological 7,000 level if new higher support is found.

In September, the Fed cut its benchmark rate by 25 basis points to 4.00% – 4.25%, marking its first cut of 2025. The Fed’s “dot plot” suggests there might be 2 more cuts this year, bringing rates down toward 3.50%–3.75%.

Still, inflation remains sticky where the Fed projects PCE inflation to be around 3.0% this year, gradually easing in future years. The labor market is showing signs of softening, hiring has cooled, and unemployment is expected to edge higher.

If the Fed leans dovish, upside remains for growth and tech names, especially if earnings surprises come through.

Hot News (Click to read):

• Rate cuts are here (Fidelity)

• Nomura adds October Fed cut forecast after widely expected policy easing (Reuters)

Singapore Stocks Spotlight

ST Engineering (S63.SI)
Target Price: S$9.00

About ST Engineering

• Singapore Technologies Engineering is a global technology and engineering group operating in aerospace, defence, digital, and urban solutions. It provides integrated products and services spanning aircraft maintenance, smart city infrastructure, and cybersecurity

Fundamental

• Solid 1H25 Earnings: Net profit climbed 20% y-o-y to S$403m, in line with expectations and covering nearly half of full-year consensus forecasts

• Operating margin expanded by 0.7 percentage points, driven by stronger revenue mix and tighter cost control

• Continued contract wins provide earnings visibility, supporting management’s target of mid-teens growth over the next three years

• Recent results were also lifted by a one-off S$38m gain in other income

Technical

• Price retraced in August towards the low around 7.50 with 2 consecutive 1GT Bearish signals, however buyers quickly regained control in mid-Sep and broke above the trailing resistance

• Immediate resistance near the 9.00 level remains firm as seen in July to August, where selling pressure is present

• 1GT Bullish signal is still playing out since mid-Sep

• If price is able to break and hold firmly above the 9.00 level, target could be revised even higher towards 10.00

Food empire (F03.SI)
Target Price: S$2.80

About Food Empire

• Food Empire Holdings is a global F&B company best known for its flagship “MacCoffee” brand. It manufactures and markets instant beverages, snacks, and food ingredients with strong presence across Eastern Europe, Russia, and Asia

Fundamental

• In 1H FY2025, Food Empire delivered a standout performance: normalized net profit rose 35.7% y/y to US$31.5 million, setting a new interim record

• Revenue growth remains strong, supported by demand across core markets, particularly in Vietnam

• The company continues to expand capacity, its Malaysian snack facility and Kazakhstan coffee-mix plant are central to scaling production

• Input cost pressures, especially from elevated coffee bean prices—and foreign exchange volatility remain key risks

Technical

• Longer-term uptrend remains intact with 100d and 200d MA still heading upwards

• Price has been consolidating sideways since July between 2.20 - 2.50, with 20d MA flattening out

• In mid-Sep, price managed to break above 2.50 for about 2 weeks

• Price has been testing the 2.50 level over the past week

• As long as price is able to continue holding above trailing support, uptrend remains intact

• The potential upside target could be drawn to 2.80, if 2.50 has firmly turned to become a new higher support

Keppel Corp (BN4.SI)
Target Price: S$9.50

About Keppel Corp

• Keppel Corporation is a diversified conglomerate with businesses in infrastructure, real estate, renewables, and asset management. It is transforming into an integrated asset manager while scaling sustainable solutions globally

Fundamental

• Keppel posted a strong start to 2025 with 1Q net profit (ex-legacy O&M assets) rising more than 25% y/y, supported by steady infrastructure earnings and improving real estate contributions

• Recurring income made up about 80% of group profit, underlining its defensive profile

• Asset management fees grew 9% y/y to S$96m, though momentum was slower than the S$120–137m/quarter achieved in 2H24

• Keppel continues to offer resilient cash flow, complemented by an attractive dividend yield above 5%

• Keppel has divested S$347m worth of assets and is in advanced talks for another S$550m, providing downside protection against softer valuation gains

Technical

• Short-term and long-term uptrend remains intact with 3 moving averages heading upwards

• Price broke above 8.80 in late Sep, forming a new support

• Over the past 2 days, price seems to have breached the 9.00 psychological level, which is potentially a new higher support

• 2 consecutive 1GT Bullish signals still in play with no exits yet

• Note that price has been respecting the trailing support since April

• As long as price is able to continue holding firmly above 8.80 and subsequently the 9.00 psychological level, potential upside target towards 9.50 remains valid, where some profit-taking could return

United States Stocks Spotlight

GE AEROSPACE (GE.NY)
Target Price: US$310.00

About GE Aerospace

• GE Aerospace designs and manufactures commercial and military aircraft engines, systems, and services. It also provides aftermarket support, including maintenance, repair, and overhaul (MRO), serving airlines and defence customers worldwide

Fundamental

• GE Aerospace delivered a strong Q2 2025 with revenue up 23% y/y to US$10.2bn, driven by robust growth in commercial engines and services

• Operating profit climbed to US$2.3bn, with margins improving as spare parts demand and shop visits surged

• Growth is anchored in the expanding LEAP and GEnx engine base, with services expected to be the key profit driver as fleets age and maintenance intensity rises

• Management raised full-year guidance, now targeting mid-teens revenue growth and higher free cash flow of US$6.5–6.9bn

• Overall, GE remains a clear leader in a secular growth industry, offering both durability and upside despite its stretched valuation

Technical

• Longer-term uptrend for GE has been intact since 2024, where all 100d and 200d MA are generally heading up

• However, based on 20d MA for the shorter-term trend, there were periods of consolidation and weakness, which is normal

• Immediate support seems around 280.00 - 285.00, where price is still respecting the trailing support

• Note that price was trading within 260. 00 - 285.00 range (~$15 range) since July to September

• Based on the range projection, upside target can be drawn towards 310, as long as support holds

Recent News (Click to Read)

• GE Aerospace Announces Investor Update and Second Quarter 2025 Results (GEAerospace.com)

• GE Aerospace Posts Better-Than-Expected Earnings and Boosts Its Outlook (Investopedia)

• Where Will GE Aerospace Stock Be in 3 Years? (Motley Fool)

APPLE INC (AAPL.NQ)
Target Price: US$300.00

About Apple Inc

• Apple is a leading technology company that designs and sells consumer electronics like the iPhone, Mac, iPad, and wearables. It also generates recurring revenue through services such as the App Store, iCloud, Apple Music, and Apple Pay

Fundamental

• Apple’s latest quarter showed record revenue of US$94bn (+10% y/y), driven by strong iPhone demand, a rebound in Mac sales, and double-digit growth in Services

• The recent iPhone 17 launch, including the new “Air” model, is expected to spark a long-overdue upgrade cycle, with analysts estimating over 300m users have not upgraded in four years, a key catalyst for device and services growth

• Services now contribute about 25% of revenue with ~74% gross margins, providing a highly profitable recurring stream

• The company remains a cash machine, with nearly US$36bn in cash and consistent free cash flow that supports one of the largest buyback programs in the world

Technical

• Short-term uptrend remains intact as 20d MA is still heading up. There is a potential shift in the long-term trend as 100d MA begin to slope upwards, attempting to cross 200d MA

• Immediate psychological resistance appears to be around the 260.00, where it was near the all-time high back in Dec 24

• 1GT Bullish signal is still playing out with no exits yet

• If prices is able to break and hold firmly above the 260.00, more buying interest could return and target could be revised higher towards 300.00

• Note that immediate support is around the 240.00, where the trailing support is at

Recent News (Click to Read)

• Apple calls for changes to anti-monopoly laws and says it may stop shipping to the EU (The Guardian)

• Apple Stock Is on a Roll. But This Data Show iPhone 17 Sales Losing Momentum (Barrons)

• Amazon, Apple win dismissal of US consumer lawsuit over iPhone prices (Reuters)

TAIWAN SEMICONDUCTOR MANUFACTURING (TSM.NY)
Target Price: US$300.00

About Taiwan Semiconductor

• TSM is the world’s largest dedicated semiconductor foundry, producing advanced chips for global clients including Apple, Nvidia, and AMD. It plays a critical role in the tech supply chain, with leadership in cutting-edge nodes such as 3nm

Fundamental

• TSMC remains the clear leader in advanced semiconductor manufacturing, holding about 67% foundry market share with 74% of revenue from 7nm and below

• Q2 2025 revenue surged to US$30.1bn (+44% y/y), driven by strong demand for AI and high-performance computing chips, with gross margins steady near 58%

• Financially, TSMC remains robust with a net cash position of US$53bn, free cash flow of ~US$24bn, and FY25 revenue growth guided at ~30%

• Advanced packaging (CoWoS, SoIC, HBM) has become a critical moat, as AI workloads increasingly rely on 2.5D/3D stacking

• Longer-term, its consistent ROCE (~49%) and superior R&D yield highlight an enduring economic moat over Intel and Samsung, positioning TSMC as the critical enabler of the AI megatrend

Technical

• Both short-term and long-term uptrend remains firmly intact with all 3 MAs still moving up

• 4 consecutive 1GT Bullish signals since May are still playing out as price continues to form new highs

• Price has recently broken above 280.00, forming a new higher support

• As long as price is able to stay above support, potential upside target towards psychological 300.00 level first, where some selling pressure could return.

• Target to be revised higher towards 320, if 300 is breached

Recent News (Click to Read)

• Taiwan will not agree to 50-50 chip production deal with US, negotiator says (Reuters)

• TSMC to phase out 6-inch wafer production over two years (Reuters)

• TSMC, chip design software firms tap AI to help chips use less energy (Reuters)

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