Trendspotter: Bullish Gold, Bearish Seatrium, and More – April 2, 2025
CGS International Research Report Breakdown
In this comprehensive analysis, we dive into the key insights and market trends highlighted in the latest CGS International research report, covering a range of sectors and companies across the global landscape.
Global Commodities: Gold Reaches New Heights
The report opens with a focus on the surging gold market, which has hit a record high at the start of the new quarter. This exceptional rally is largely driven by the growing concerns over escalating trade and geopolitical tensions, as well as consistent central bank buying. Bullion has been one of the strongest performing commodities this year, posting its best quarter since 1986 in the opening three months. Analysts note that gold’s ascent has been fueled by a “rising tide of haven demand amid intensifying geopolitical and macro uncertainties”.
Holdings in gold-backed exchange-traded funds have climbed more than 6% so far in 2025, following four years of net outflows, reaching the highest level since September 2023. This underscores the increasing investor appetite for the safe-haven asset amidst the current market volatility.
Malaysian Banking Sector: Loan Growth Slows, but Deposits Surge
Turning to the Malaysian banking sector, the report highlights that loan growth eased from 5.6% year-over-year at the end of January 2025 to 5.2% year-over-year at the end of February 2025. This is largely in line with the analysts’ projection for loan growth of 4.5-5.5% for 2025.
However, the researchers take a positive view on the stronger increase in banks’ deposits, which saw a month-over-month rise of RM16 billion in February 2025 compared to RM4 billion in January 2025. The report reiterates an Overweight rating on the banking sector, citing expectations of ongoing write-backs in management outlay and rising dividend payout ratios.
Hong Kong Real Estate: Sustainable EPS and DPS Growth for Poly Property Services
The report also examines the Hong Kong real estate market, with a focus on Poly Property Services. The analysts highlight the company’s prospects for sustainable earnings per share (EPS) and dividend per share (DPS) growth in the fiscal year 2025.
Bearish Reversal in Seatrium Ltd.
The centerpiece of the report is the analysis of Seatrium Ltd., a Singapore-based engineering solutions provider for the offshore, marine, and energy industries. The researchers have initiated a technical sell call on the stock, citing a bearish reversal in the price action.
Key technical indicators point to a breakdown of the larger rising wedge pattern, confirming a bearish continuation to the downside. The report also highlights the formation of a bearish head and shoulder pattern, as well as the stock’s breach of support-turned-resistance at S\$2.09. Additionally, the stock has crossed below the Ichimoku indicators, and the MACD and stochastic oscillator have turned negative, further strengthening the bearish case.
The analysts have provided multiple downside target prices for Seatrium Ltd., ranging from S\$1.86 to S\$1.48, suggesting significant potential for further losses.
Conclusion
The CGS International research report offers a comprehensive overview of the current market landscape, from the soaring gold prices to the mixed performance in the Malaysian banking sector and the bearish outlook for Seatrium Ltd. in Singapore. This in-depth analysis provides valuable insights for investors, analysts, and market watchers seeking to navigate the complex and ever-evolving global financial markets.
