Market Momentum and Technical Insights: LHN Ltd’s Bullish Outlook and DBS Group’s Resilient Guidance

Global Market Overview: Shifting Tides and Trade Developments

Wall Street embraced a risk-on mood as equities rallied on the back of significant trade developments. The market was buoyed by the announcement of a trade deal with the UK, with President Donald Trump emphasizing that if progress in the US-China talks materializes, tariffs could be eased. Investors were advised to buy shares immediately, and this sentiment sparked a rally that saw the S&P 500 at one point briefly topping its earlier high. Equities across the board experienced gains:

• The S&P 500 advanced by 0.6%.
• The Nasdaq 100 gained 1%.
• The Dow Jones Industrial Average rose 0.6%.
• The Russell 2000 climbed 1.8%.

The market’s focus was on the easing of tensions between the US and its top trading partners with economic-sensitive sectors leading the charge. Insights from leading analysts underscored that the promising trade news, combined with Republican efforts to extend signature tax cuts, created a positive outlook for investors.

DBS Group: Robust Guidance Amid Uncertain Global Conditions

DBS Group remains in focus with a confident outlook, even in the midst of rising global economic uncertainties. At an analyst briefing held on the morning of May 8, 2025, DBS reaffirmed its FY25F guidance of flat year-on-year profit before tax. Key points highlighted include:

• Strong Capital Backend: With approximately S\$2.6bn of its S\$4.16bn in general partners earmarked as a management overlay by end-1Q25, DBS is well‐positioned to face potential stress scenarios.
• Healthy Excess Capital: DBS’s excess capital of around S\$7.73bn as of 1Q25 could provide a sustainable support for an enhanced capital return policy between FY25 and FY27.
• Investment Rating Upgrade: Analysts have upgraded DBS Group to an “Add” rating, accompanied by a higher target price of S\$47.90, bolstered by their capital return initiatives, which improve yield attractiveness and long-term ROE.

This resilient performance and strategic capital management have positioned DBS well for a favorable market environment despite the uncertain global backdrop.

LHN Ltd: Technical Strength Propelling Bullish Momentum

LHN Ltd is garnering attention with a strong technical setup that points to a continuation of the recent uptrend. The company, which specializes in property management and logistics services, has showcased robust price action as it completes a significant corrective phase. Below is a detailed technical analysis:

Technical Snapshot and Key Indicators

• Price Movement: The stock’s last price was recorded at 0.490, with multiple entry points at 0.490, 0.440, and 0.420.
• Support Levels:
  • Support 1: 0.435
  • Support 2: 0.385
• Stop Loss: A stop loss has been advised at 0.380.
• Resistance Zones:
  • Resistance 1: 0.560
  • Resistance 2: 0.620
• Target Prices:
  • Target 1: 0.600
  • Target 2: 0.650
  • Target 3: 0.700
  • Target 4: 0.780

Key Technical Insights

Several clear indicators suggest that the bullish momentum for LHN Ltd is intact, potentially marking an end to the recent three-wave corrective move:

• Breakout Confirmation: The stock has broken out of its corrective channel/flag, indicating the conclusion of its corrective phase.
• Continuation Signal: A strong breakout of the flag pattern highlighted the start of a bullish continuation.
• Ichimoku Indicator: This technical tool is showing a solid bullish signal.
• Stochastic Oscillator: The oversold crossover confirmed by this oscillator further cements the bullish case.
• Rate of Change (ROC): The 23-period ROC has risen above the zero line, suggesting upward momentum.
• Volume Expansion: Trading volume has risen above its 20-period average, which signals healthy market participation and expansion.

Conclusion

Overall, the current market dynamics present a compelling narrative. With macro-level trade negotiations and market rallies setting an upbeat tone, DBS Group’s robust balance sheet and strategic capital allocation offer reassurance during turbulent times. Meanwhile, LHN Ltd’s technical indicators point to a strong bullish commitment, making it a potential candidate for investors looking to capitalize on a breakout move.

Both companies exemplify different aspects of market strength – DBS through resilient guidance and capital efficiency, and LHN through technical breakout and bullish momentum. Investors are advised to review these insights closely and consider them as part of their overall market strategy in the evolving global economic landscape.