Overview of the Market Trends
As we approach the end of 2024, market dynamics are shifting with significant implications for investors. The Singapore market is navigating the complex terrain of rising tariffs and trade uncertainties, alongside inflationary impacts on interest rates. Investors are advised to stay nimble and informed as these factors play out in shaping market sentiments and investment opportunities.
iFAST Corp Ltd: A Technical Buy
iFAST Corp Ltd is at the forefront of attention with its promising technical indicators. The company, which operates a funds and investments distribution platform across the Asia Pacific, has shown resilience with a remarkable recovery from its recent correction. The stock is currently priced at S\$7.88, and analysts are optimistic about its bullish trajectory.
Key technical indicators suggest a robust buying opportunity:
- The stock has been forming a series of higher lows, indicating strength despite a larger-than-expected correction in late October 2024.
- It has successfully breached the S\$7.62 resistance, now acting as support.
- Trading above all Ichimoku indicators, it shows a strong upward trend.
- The MACD histogram has turned positive, signaling potential upward momentum.
- The Stochastic Oscillator has performed a crossover, further reinforcing bullish sentiment.
- The 23-period ROC has risen above the zero line, a classic bullish indicator.
- The Directional Movement Index indicates strong bullish strength.
- Volume spikes above the 20-period average suggest sustained interest and momentum.
The analyst recommends a technical buy with potential target prices set at S\$8.70, S\$9.70, S\$10.00, and S\$10.80.
PAX Global Technology Ltd: A Technical Buy
PAX Global Technology Ltd, listed in Hong Kong, is another company receiving attention with a technical buy recommendation. Entry prices are positioned at 5.40, 5.00, and 4.75, with a stop loss set at 4.35. Target prices are projected at 6.58, 7.20, 8.22, and 10.00, reflecting a strategic approach for potential gains.
Investment Strategy for Singapore’s Market
Heading into 2025, the Singapore market presents unique opportunities for investors. Analysts suggest focusing on three key investment themes: high-yield, high-growth stocks, value-up plays, and interest rates and bond yields. The market is currently offering a 4.1% dividend yield for CY25F and high ROEs of 12.3-12.4%, supporting a trajectory of high dividend yields.
Potential positive outcomes from the Monetary Authority of Singapore’s review could catalyze value-unlocking and restructuring activities, adding dynamism to the market landscape.
Key Market Statistics
The market indices show varied performances, with the Dow Jones at 44,765.71, marking a -0.6% change, while the S&P 500 Index stands at 6,075.11 with a modest -0.2% change. Meanwhile, the Nasdaq Index reported a similar -0.2% change at 19,700.26. These movements reflect broader market trends influenced by economic data and geopolitical factors.
