Date: September 23, 2024
Broker: CGS-CIMB Securities
Company Overview
Singapore Post Limited (SingPost) is the national postal service provider in Singapore. The company offers domestic and international postal and courier services, providing end-to-end integrated mail solutions. These services include data printing, letter-shopping, delivery, and mailroom management. In addition, Singapore Post has expanded its portfolio to include e-commerce logistics solutions, establishing itself as a key player in both the postal and logistics sectors.
Recent Stock Performance
The report highlights Singapore Post Ltd’s stock performance, noting an uptrend in the early stages as of September 23, 2024. SingPost has demonstrated robust price action, and the stock has reached the second target price (TP) of S$0.500. Following this, the stock corrected and rebounded at the second buy limit price of S$0.410, achieving a gain of more than 18% to date.
Technical Indicators
Several technical indicators are supporting the bullish outlook for Singapore Post:
- Inverted Head and Shoulders Formation: A larger inverted head and shoulders pattern is forming, which typically signals a strong bullish reversal.
- Breakout from Consolidation: A breakout from a small consolidation range is seen as a continuation of the upside trend.
- Ichimoku Indicator: The stock prices are trending above all Ichimoku indicators, signifying a positive outlook.
- MACD: The MACD histogram has turned positive, with both the signal line and the MACD line rising above the zero line.
- Stochastic Oscillator: The oscillator continues to rise, reinforcing the upward momentum.
- ROC (Rate of Change): The 23-period ROC has returned above the zero line, indicating positive price momentum.
- Directional Movement Index (DMI): The DMI shows strong bullish strength in the stock.
- Volume: The stock’s trading volume has risen above the 20-period average, which indicates renewed buying pressure.
Target Prices and Key Levels
- Entry Prices: S$0.480, S$0.440, S$0.420
- Support Levels: S$0.430 (Support 1), S$0.390 (Support 2)
- Resistance Levels: S$0.480 (Resistance 1), S$0.550 (Resistance 2)
- Target Prices:
- Target Price 1: S$0.540
- Target Price 2: S$0.590
- Target Price 3: S$0.640
- Target Price 4: S$0.700
Conclusion
CGS-CIMB Securities views Singapore Post Ltd as a technical buy, supported by a strong set of technical indicators and recent stock performance. The stock has a favorable risk-reward profile, with potential upside targets reaching as high as S$0.700. The analysis recommends monitoring the stock closely for further upward momentum, given the positive breakout signals and technical strength.
Source: CGS-CIMB Securities, Singapore Post Ltd Analysis, September 23, 2024
