Singapore Retail Research Report: November 11, 2024

Broker: CGS International Securities

Date: November 11, 2024

Market Overview

The past week has been remarkable for the stock market, concluding with robust consumer sentiment and optimism surrounding President Donald Trump’s pro-growth agenda. The S&P 500 recorded its 50th high this year, closing the week with a 4.7% gain. Notably, Tesla Inc. experienced a surge, propelling it back over the trillion-dollar valuation mark. Defensive shares took the lead after hitting oversold levels, with \$20 billion flowing into US equity funds as Trump claimed victory. Small caps, likely benefitting from Trump’s protectionist stance, saw the most significant inflow since March.

Chasen Holdings Ltd – Bullish Continuation?

Last Price: 0.111

Chasen Holdings Ltd is showing promising signs of a bullish continuation. The company, which offers industrial relocation and warehousing services, has exhibited a potential break to the upside. Key indicators supporting this trend include:

• Entry Prices: 0.111, 0.100, 0.090
• Support Levels: 0.092, 0.074
• Stop Loss: 0.079
• Resistance Levels: 0.113, 0.160
• Target Prices: 0.140, 0.168, 0.220, 0.250

The company has shown a bullish break above a symmetrical triangle pattern, with resistance at 0.113 being tested multiple times. Prices are trending above all Ichimoku indicators, and the MACD/signal line remains elevated above the zero line. Additionally, the stochastic oscillator continues to rise, and the 23-period ROC has sharply risen above the zero line, indicating increased bullish momentum.

CanSino Biologics Inc (6185) – Technical Buy

Entry Prices: 30.95, 25.58, 22.50

Stop Loss: 20.97

Target Prices: 35.21, 38.12, 40.00, 48.12

CanSino Biologics Inc is identified as a technical buy with entry prices at 30.95, 25.58, and 22.50. The stop loss is set at 20.97, with target prices of 35.21, 38.12, 40.00, and 48.12, suggesting a strong potential for upward movement.

Singapore Airlines – 2QFY25 Weaker Than Expected

Singapore Airlines (SIA) reported a core net profit of S\$296m for 2QFY25, falling short of the expected S\$416m. This result is 29% below the preview, 54% lower year-on-year, and 32% lower quarter-on-quarter. Given that 1QFY25’s core net profit was only 38% lower year-on-year and 21% lower quarter-on-quarter, the stock is likely to face sell-offs when the market reopens on Monday. Despite this, the target price (TP) has been lifted to S\$6 as the projection rolls forward to end-CY25F, maintaining an unchanged price-to-book value (P/BV) of 1.1x.

Sembcorp Industries – Divesting Recycled Waste Asset

Sembcorp Industries is in the process of divesting its recycled waste asset. This move is part of the company’s strategy to streamline its operations and focus on core areas. Further details on the divestment will follow as the transaction progresses.

OCBC – On Track to Meet FY24F Targets

OCBC is on track to meet its financial year 2024 forecast targets. The bank’s strategic initiatives and performance metrics indicate a strong likelihood of achieving the set financial goals, reinforcing investor confidence.

United Overseas Bank – Capital Return on the Cards

United Overseas Bank (UOB) is considering a capital return, which could potentially enhance shareholder value and reflect the bank’s robust financial health. Details regarding the capital return will be disclosed as the bank finalizes its plans.

Commodities and Indices Overview

Global market indices and commodities showed varied performance:

• Dow Jones: 43,988.99 (+0.6%, YTD +16.7%)
• S&P 500: 5,995.54 (+0.4%, YTD +25.7%)
• Nasdaq: 19,286.78 (+0.1%, YTD +28.5%)
• Euro Stoxx 50: 4,802.76 (-1.0%, YTD +6.2%)
• Germany’s DAX: 19,215.48 (-0.8%, YTD +14.7%)
• UK’s FTSE 100: 8,072.39 (-0.8%, YTD +4.4%)
• Japan’s Nikkei-225: 39,500.37 (+0.3%, YTD +18.0%)
• Shanghai SE Composite: 3,452.30 (-0.5%, YTD +16.0%)
• Hong Kong’s Hang Seng: 20,728.19 (-1.1%, YTD +21.6%)
• Australia’s ASX 200: 8,295.13 (+0.8%, YTD +9.3%)
• India’s BSE Sensex 30: 79,486.32 (-0.1%, YTD +10.0%)
• Singapore’s Straits Times: 3,724.37 (+1.4%, YTD +14.9%)
• Taiwan TAIEX: 23,553.89 (+0.6%, YTD +31.4%)
• Korea’s KOSPI: 2,561.15 (-0.1%, YTD -3.5%)
• Malaysia’s FBMKLCI: 1,621.24 (-0.1%, YTD +11.5%)
• Indonesia’s JCI: 7,287.19 (+0.6%, YTD +0.2%)
• Thailand’s SET: 1,464.69 (-0.3%, YTD +3.4%)
• Philippines’ PCOMP: 6,977.18 (-0.5%, YTD +8.2%)

Most Active Stocks

Malaysia:

• 3REN SDN BHD: 0.45 (-2.2%, YTD +61%)
• MICROLINK SOLUT: 0.15 (+7.1%, YTD -83%)
• GENETEC TECH BHD: 0.86 (-7.0%, YTD -63%)
• TALAM TRANSFORM: 0.03 (+0.0%, YTD +67%)
• DXN HOLDINGS BHD: 0.49 (-4.9%, YTD -19%)

Singapore:

• GENTING SINGAPOR: 0.790 (-6.0%, YTD -17%)
• YANGZIJIANG SHIP: 2.680 (+3.9%, YTD +87%)
• JIUTIAN CHEMICAL: 0.031 (+10.7%, YTD +19%)
• HOE LEONG CORP: 0.002 (+0.0%, YTD +100%)
• SINGAPORE TELECO: 3.250 (+1.6%, YTD +35%)

S&P 500:

• NVIDIA CORP: 147.63 (-0.8%, YTD +198%)
• TESLA INC: 321.22 (+8.2%, YTD +29%)
• INTEL CORP: 26.20 (-0.1%, YTD -47%)
• WARNER BROS DISC: 9.18 (-2.0%, YTD -19%)
• SUPER MICRO COMP: 24.52 (-3.8%, YTD -14%)

Global Commodities

• ThomReuters/Jefferies CRB: 281.68 (-1.6%, YTD +6.8%)
• Gold Spot (US\$/oz): 2,684.77 (-0.8%, YTD +30.1%)
• Silver Spot (US\$/oz): 31.31 (-2.3%, YTD +31.6%)
• WTI Crude Oil (US\$/barrel): 70.38 (-2.7%, YTD -12.3%)
• Brent Crude Oil: 73.87 (-2.3%, YTD -14.0%)
• Natural Gas Futures: 2.67 (-0.9%, YTD -40.4%)
• Copper Futures: 430.60 (-2.8%, YTD +13.0%)
• Soybeans Futures: 1,030.25 (+0.4%, YTD -20.4%)
• Soybean Oil Futures: 48.77 (+0.9%, YTD +1.9%)
• Soymeal Futures: 296.20 (-0.8%, YTD -23.3%)
• Sugar Futures: 21.82 (-1.7%, YTD +8.9%)
• Cocoa Futures: 7,117.00 (-3.3%, YTD +173.7%)
• Coffee Futures: 253.35 (-2.7%, YTD +51.4%)
• Corn Futures: 431.00 (+0.8%, YTD -36.5%)
• Wheat Futures: 572.50 (+0.2%, YTD -27.7%)
• Live Cattle Futures: 183.70 (-1.1%, YTD +16.3%)
• Cotton Futures: 70.98 (-0.1%, YTD -14.9%)
• Palm Oil Futures (3rd month): 5,039.00 (+2.9%, YTD +35.4%)
• Orange Juice Futures: 466.65 (+1.4%, YTD +45.7%)

Conclusion

The Singapore Retail Research report for November 11, 2024, provides a comprehensive analysis of key stocks and market trends. With bullish signals for Chasen Holdings Ltd, technical buy recommendations for CanSino Biologics Inc, and updates on Singapore Airlines, Sembcorp Industries, OCBC, and United Overseas Bank, investors have valuable insights to navigate their investment strategies. Stay informed and make well-considered decisions in this dynamic market environment.