OCBC Investment Research
Date of Report: 4 June 2025

Global Markets Update: Resilient US Jobs Data, Trump Tariffs, and Top Singapore Stocks to Watch

US Market Seesaws on Jobs Data and Fresh Trade Tariffs

The US equity markets experienced a positive session, buoyed by an unexpected rise in job openings, despite lingering concerns about President Donald Trump’s aggressive trade policies and their global impact. The Nasdaq Composite led with a gain of 0.81%, the S&P 500 rose 0.58%, and the Dow Jones Industrial Average climbed 214 points, or 0.51%. Notably, trading volumes were subdued across all sectors except consumer staples. Gold prices retreated from a four-week high as the US dollar strengthened.
Key highlights:

• The number of unfilled US jobs rose in April, reinforcing the Federal Reserve’s position that the labor market remains robust.
• The Fed is expected to keep interest rates steady until further clarity emerges on stagflation risks.
• Friday’s upcoming jobs report is anticipated to reveal the economic effects of the Trump administration’s tariffs, job cuts, and immigration policies.
• ISM manufacturing data indicated continued contraction, placing the recent equity rally at risk unless upcoming US data underscores steady momentum.
• The OECD downgraded US economic growth projections for 2025 to 1.6%, down from 2.2% in March, with even weaker growth forecasted for 2026.
• President Trump signed a directive raising steel and aluminium tariffs to 50%, drawing criticism from the European Union, which threatened countermeasures.
• Investors are advised to maintain diversified portfolios and focus on defensive stocks with strong pricing power and resilient earnings.

Asia-Pacific Markets: Mixed Performance Amid Trade Uncertainty

The MSCI Asia Pacific Index saw gains as high as 0.5% before retreating. Hong Kong outperformed with a surge of over 1%, while Taiwan and China also advanced as trade tensions eased temporarily. However, concerns about China’s economic weakness persisted after private factory data revealed the worst performance in over two years, attributed to higher US tariffs.

Singapore Market Snapshot

• Straits Times Index (STI) closed at 3,894.4, up 0.1%.
• FTSE ST Financials fell 0.3%; FTSE ST REITs slipped 0.2%.
• Trading volume: 1,103.7 million (-4.6%).
• Turnover: SGD 1,312.9 million (unchanged).
• 52-week range: 3,198.4 – 4,005.2.
• Gainers: 320; Losers: 184.

Global Indices and Commodities

Latest Stock and Sector Reports: Key Recommendations

OCBC Investment Research released several updated reports with actionable insights and ratings for leading Singapore and global companies. Below is a summary of the most recent analyses:

• Seatrium Limited (STM SP): “Staying Focused on Project Delivery” — BUY, Fair Value: SGD 2.76
• Boustead Singapore (BOCS SP): “Resilience in the Face of Adversity” — BUY, Fair Value: SGD 1.46
• CapitaLand Ascendas REIT (CLAR SP): “Deepening its Presence in Singapore” — BUY, Fair Value: SGD 3.21
• SIA Engineering Co Ltd (SIE SP): “Materially Positive Development” — BUY, Fair Value: SGD 3.00
• Enphase Energy (ENPH US): “Volatility Arising from House Tax Bill” — HOLD, Fair Value: USD 43.00
• SATS Ltd (SATS SP): “Tariff Storm Spells Near-Term Turbulence” — BUY, Fair Value: SGD 3.73
• Singtel (ST SP): “Stepping Up on Capital Management” — BUY, Fair Value: SGD 4.51
• City Developments Ltd (CIT SP): “Some Encouraging Signs from 1Q25 Updates” — BUY, Fair Value: SGD 6.01
• China Strategy: “Risk of Potential Chinese ADR Delisting Cannot Be Ignored”
• First Solar Inc (FSLR US): “45X Domestic Tax Credits Poised to Survive” — BUY, Fair Value: USD 427.00
• NetLink NBN Trust (NETLINK SP): “Steady Distribution” — BUY, Fair Value: SGD 1.01
• Singapore Airlines (SIA SP): “Another Blockbuster Year” — HOLD, Fair Value: SGD 6.80
• KE Holdings Inc (2423 HK, BEKE US): “Earnings Miss Due to Margin Compression” — BUY, Fair Value: HKD 69.15 / USD 26.60
• Alibaba Group (9988 HK, BABA US): “E-Commerce and Cloud Execution on Track” — BUY, Fair Value: HKD 160.00 / USD 164.50
• ComfortDelGro Corporation (CD SP): “Steady Growth and Relatively Defensive Earnings” — BUY, Fair Value: SGD 1.71
• Tencent Holdings (700 HK): “Growth Acceleration” — BUY, Fair Value: HKD 650.00
• Bumitama Agri Ltd (BAL SP): “A Strong Start to the Year” — BUY, Fair Value: SGD 0.975
• Singapore Post (SPOST): “Sharpening Focus on Core Business” — HOLD, Fair Value: SGD 0.0605
• Singapore REITs: “Quality Bias Amid a Mixed Outlook”
• DBS Group Holdings Ltd (DBS SP): “Lower 1Q25 Was Within Expectations” — BUY, Fair Value: SGD 50.00

Top STI Stocks by Market Capitalisation: Detailed Overview

Below is a comprehensive table showcasing the largest companies in the Straits Times Index (STI), including their market capitalization, dividend yield, P/E ratios, and analyst recommendations:

Forex and Commodities Update

• USDSGD: 1.2897 (-0.3%)
• USDJPY: 143.97 (-0.9%)
• USDCNY: 7.188 (+0.1%)
• USDHKD: 7.845 (unchanged)
• Silver: USD 34.52/oz (-0.7%)

Conclusion: Positioning for Uncertainty with Diversification and Quality

With trade tensions escalating, growth forecasts downgraded, and policy uncertainty looming, OCBC Investment Research underscores the importance of portfolio diversification and a tilt towards defensive names. Investors are encouraged to focus on companies with strong pricing power, robust earnings resilience, and strategic positioning within their sectors. The detailed analyst ratings and fair value estimates provided for Singapore’s top companies offer a comprehensive guide for navigating the evolving market environment.