CGS International April 30, 2025

Market Pulse: Wall Street Navigates Growth Concerns and Trade Tensions

Wall Street traders are cautiously re-engaging with the stock market rebound, betting that Corporate America can withstand slowing economic growth and earnings disruptions fueled by tariffs. Despite weak consumer confidence and labor data, the S&P 500 was tracking towards its most significant six-day gain since March 2022, rising 7.5% during that period. Earlier market pressure arose as some corporate giants withdrew earnings guidance due to uncertainties surrounding President Donald Trump’s trade war and his threat to dismiss Federal Reserve Chairman Powell.
Investors continue to show a preference for short-dated Treasuries, anticipating a further slowdown in US economic activity. However, a faction of stock market bulls is driving a comeback, possibly motivated by a fear of missing out (FOMO) on the initial phase of a market bounce, considering the historical tendency of US market rebounds. Furthermore, expectations that the Federal Reserve might cut interest rates to stave off a recession are potentially building a case for risk-on investments.
Nevertheless, after a period of relative stability last year, the US economy experienced a loss of momentum at the beginning of 2025. Factors contributing to this include consumer fatigue and a widening trade deficit, suggesting a significant economic impact during the first quarter.

Idea of the Day: China Sunsine Chemical Holdings Ltd – Attempting a Break

China Sunsine Chemical Holdings Ltd is highlighted as potentially attempting a significant market break. (Note: Further detailed technical analysis in this report focuses on Frencken Group Ltd).

Company Analysis: Frasers Centrepoint Trust (FCT) – Healthy Operations

Frasers Centrepoint Trust (FCT) reported operating metrics indicating healthy performance. Key highlights include:

• DPU In Line: The 1HFY25 Distribution Per Unit (DPU) came in at 6.054 Singapore cents, aligning with forecasts at 50.1% of the full-year FY9/25F estimate.
• Strong Occupancy: FCT maintained a high portfolio occupancy rate of 99.5%.
• Positive Rental Reversion: The trust achieved a +9% rental reversion during 1HFY25.
• Rating Maintained: The “Add” rating is reiterated, with a slightly increased DDM-based Target Price (TP) of S\$2.70.

Technical Buy Analysis: Frencken Group Ltd – Poised for Uptrend?

Last Price: 0.540
Frencken Group Ltd is showing signs of attempting a break, suggesting a potential renewed uptrend based on technical indicators.
(Note: The company description provided in the source material under the Frencken Group technical analysis section refers to China Sunsine Chemical Holdings Limited, which produces rubber chemicals. The technical snapshot points below also refer to China Sunsine’s price action.)
Key Technical Levels & Targets:

Source: Tradingview, CGSI RESEARCH (as presented in the original report)
Technical Snapshot:
The price action is being monitored for a potential renewed uptrend based on the following observations:

1. The stock has been in an uptrend since August 2024.
2. A V-shaped bottom pattern was observed, rebounding from the key psychological level of S\$0.500, which transitioned from resistance to support.
3. Prices are currently trading above all Ichimoku indicators.
4. The MACD indicator is rising steadily above the zero line, and the histogram is positive.
5. The Stochastic Oscillator has moved above the 50-midpoint level.
6. The 23-period Rate of Change (ROC) indicator is approaching a potential break above the zero line, with bullish divergence noted.
7. Trading volume remains in a state of healthy expansion.

Analyst(s)

CHUA Wei Ren, CMT T (65) 6210 8612 E weiren.chua@cgsi.com

Disclaimer Summary

This report was prepared by CGS International and is intended for informational purposes only. It is not intended for distribution where such distribution would be contrary to law. Recipients accept this report with the understanding that they are entitled to receive it according to jurisdictional restrictions and agree to its confidentiality. Information is sourced from data believed reliable at the time of issue but is not guaranteed for accuracy or completeness. CGS International has no obligation to update the report. Opinions expressed are subject to change. Past performance is not indicative of future results. This report does not constitute an offer or solicitation to buy or sell any securities. CGS International, its affiliates, and employees may hold positions or conduct business with the companies mentioned, potentially creating conflicts of interest. The analyst certifies that the views expressed are their own personal views and compensation is not tied to specific recommendations. This report is general and does not consider individual investment objectives or financial situations; investors should seek independent advice. Distribution is restricted in various jurisdictions (including Australia, Canada, China, France, Germany, Hong Kong, Indonesia, Ireland, Malaysia, New Zealand, Singapore, South Korea, Spain, Sweden, Switzerland, Thailand, UAE, UK, EEA, USA) and subject to specific regulations and recipient qualifications within those areas.

Recommendation Framework

Stock Ratings Definition:

• Add: The stock’s total return is expected to exceed 10% over the next 12 months.
• Hold: The stock’s total return is expected to be between 0% and positive 10% over the next 12 months.
• Reduce: The stock’s total return is expected to fall below 0% or more over the next 12 months.

Total expected return = (% difference between target price and current price) + (forward net dividend yields). Investment horizon is 12 months.
Sector Ratings Definition:

• Overweight: Stocks in the sector have, on a market cap-weighted basis, a positive absolute recommendation.
• Neutral: Stocks in the sector have, on a market cap-weighted basis, a neutral absolute recommendation.
• Underweight: Stocks in the sector have, on a market cap-weighted basis, a negative absolute recommendation.

Country Ratings Definition:

• Overweight: Investors should be positioned with an above-market weight in this country relative to benchmark.
• Neutral: Investors should be positioned with a neutral weight in this country relative to benchmark.
• Underweight: Investors should be positioned with a below-market weight in this country relative to benchmark.

Rating Distribution (%)

Distribution of stock ratings and investment banking clients for quarter ended on 31 March 2025. 551 companies under coverage for quarter ended on 31 March 2025.