Broker: UOB Kay Hian
Date of Report: Friday, 13 June 2025

Regional Market Indices Surge: Insights, Strategies, and Stock Picks for Singapore, Hong Kong, Malaysia, Indonesia, and Thailand

Market Overview: Regional Indices Maintain Bullish Momentum

The FSSTI index closed 3.15 points higher at 3,922.20, marking a year-to-date (YTD) gain of 2.5%. Notably, active stocks included Seatrium (+1.0%), Singtel (+1.3%), DBS (-0.5%), SingPost (-0.9%), and Thai Beverage (-1.1%). The FTSE ST Mid Cap Index rose 0.3%, while the FTSE ST Small Cap Index edged up 0.1%. Market breadth showed 236 gainers and 252 losers with a total trading value of S\$1.20 billion.

Key indices across the region showed mixed but generally positive performance, with the Hang Seng Index (HSI) and the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI) among those closely watched. Here are the key index performances:

Top Volume Stocks and Movers in Singapore

A snapshot of the most traded and biggest movers:

Top Gainers:

• Hutchison Port Holdings Trust: S\$0.21 (+2.4%)
• Thomson Medical Group: S\$0.04 (+2.3%)
• Golden Agri-Resources: S\$0.26 (+2.0%)
• Digital Core Reit Management: S\$0.52 (+2.0%)
• Jardine Matheson Holdings: S\$44.64 (+1.9%)

Top Losers:

• Yanlord Land Group: S\$0.50 (-2.9%)
• Ho Bee Land: S\$2.04 (-2.9%)
• Nio Inc-Class A: S\$3.71 (-2.6%)
• Shangri-La Asia: S\$4.39 (-2.4%)
• Tianjin Pharmaceutical Da: S\$2.49 (-2.4%)

Monthly Technical Regional Indices Outlook and ETF Opportunities

Hang Seng Index (HSI): Eyeing the 24,800pt Resistance

The HSI has achieved a major breakout, moving above the 22,600–24,000pt consolidation zone. The index has traded above all its major simple moving averages for six consecutive sessions, indicating strong momentum. However, as the HSI approaches the 24,800pt resistance—its highest level in three years—there is evidence of profit-taking, with a black candlestick marking a cautionary note.

Strategy: The short-term upside is capped at 24,800pt, with support at 22,600–22,800pt. Investors are advised to lock in some profits at resistance to manage downside risks. Domestic consumption and defensive sectors are favored, with pharmaceuticals offering speculative opportunities.

• Support: 22,600–22,800pt
• Resistance: 24,800pt / 26,000pt

Tradable ETFs in Hong Kong: Tracker Fund Of Hong Kong (2800 HK), CSOP Hang Seng Index ETF (3037 HK)

FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI): Sideways with Cautious Optimism

Recent weeks have seen the bullish momentum for FBMKLCI interrupted, pulling the index down to 1,523.38. Technical indicators point to waning buying pressure, with the RSI signaling weakness. Despite this, the index remains above its medium-term rising trendline, suggesting the upward trend could resume once selling pressure abates.

Strategy: Adopt a wait-and-see approach, buying on dips as momentum stabilizes. Key levels to watch:

• Support: 1,500 / 1,475
• Resistance: 1,600 / 1,632

ETF in Malaysia: FTSE Bursa Malaysia KLCI ETF (FBMKLCI-EA 0820EA)

Jakarta Stock Exchange Composite Index (JCI): Bullish with Potential Consolidation Ahead

The JCI remains strong above the 7,000 psychological level, but a recent rally has brought it near significant Fibonacci resistance zones (7,300–7,400). Indicators such as the RSI and MACD remain bullish, though some consolidation is anticipated as the index approaches resistance. Market sentiment is mixed, balancing positive US-China trade developments against local economic softness.

Strategy: Favor long positions in basic minerals, energy, healthcare, and consumer sectors.

• Support: 6,990 / 6,930
• Resistance: 7,325 / 7,455

Indonesian ETFs: Reksa Dana Premier ETF LQ-45 (ETF LQ45), Reksa Dana Premier ETF IDX30 (ETF IDX 30)

Stock Exchange of Thailand Index (SET): Awaiting Directional Clarity

SET has been in a persistent downtrend, recently breaching key support at 1,150 to enter a sideways consolidation between 1,119 and 1,165. The critical gap support at 1,094–1,119 is key; any breakdown here could trigger further declines.

Strategy: Consider bullish accumulation near 1,119 with a stop-loss at 1,094, targeting a rebound toward 1,265. Tactical plays in laggard sectors (petrochemicals, packaging, energy, commerce, tourism) may offer upside.

• Support: 1,125 / 1,094
• Resistance: 1,165 / 1,178

Tradable Thai ETFs: ThaiDEX SET50 ETF (TDEX), ThaiDEX SET100 ETF (TH100), KTAM SET50 ETF Tracker (ESET50); In Singapore: Lyxor UCITS ETF by Societe Generale (P2P)

FTSE Straits Times Index (STI): Testing Resistance, Cautious Optimism

The FSSTI maintains a bullish stance, trading above its cloud and nearing the significant resistance zone at 4,005. The MACD remains bullish, though upward momentum may be slowing. A breakout above 4,005 could signal further upside; failure to do so may cause a retreat to 3,510.

Strategy: Monitor the 4,005 resistance closely and consider distributing holdings if the index cannot break through.

• Support: 3,690 / 3,370
• Resistance: 3,970–4,005

Singapore ETFs: Singapore STI ETF by Nikko AM (G3B), Straits Times Index ETF by SPDR (ES3)

Singapore Exchange (SGX): On Track for a Record Year

SGX’s latest monthly statistics for May 2025 highlight robust growth in both securities and derivatives trading:

• Securities Daily Average Value (SDAV): Up 5.9% year-on-year (yoy), with total market turnover value rising 0.8% yoy, driven by strong activity in the financial and telco sectors.
• Derivatives Daily Average Volume (DDAV): Up 11.0% yoy, led by fixed income, currencies, and commodities (FICC).
• Equity Index Futures: Overall volumes fell 6.4% as major contracts like FTSE Taiwan Index Futures (-17.6% yoy), MSCI Singapore Index Futures (-35.4% yoy), and Nikkei 225 Index Futures (-44.1% yoy) declined. However, FTSE China A50 Index Futures grew 4.0% yoy.
• Forex Futures: Volumes surged 53.6% yoy, with USD/CNH (+38.5% yoy), KRW/USD (+131.2% yoy), and INR/USD (+65.2% yoy) all posting strong gains.
• Commodities: Slightly weaker in May (-5.2% yoy), mainly due to iron ore (-2.8% yoy) and SGX SICOM rubber futures (-34.8% yoy).

Year-to-date, total traded securities market turnover reached S\$310 billion, up 27.9% yoy and on course to surpass estimates of S\$325 billion for FY25. Total forex volumes (66 million) already exceed the full-year forecast of 61 million, while commodities volumes (60 million) are trailing the 79 million target.

Key Financials

Market Impact and Regulatory Developments

• MAS Review Group: The Monetary Authority of Singapore (MAS) has launched a review to strengthen the equities market, with key measures including a S\$5 billion Equity Market Development Programme (EMDP), tax incentives, streamlined listings, and capital inflow support.
• EMDP Impact: The S\$5 billion EMDP, set to be deployed as early as 4Q25, will target non-index stocks, focusing on small/mid-cap names rather than REITs to boost market liquidity and valuations.
• Valuation and Recommendation: UOB Kay Hian maintains a HOLD rating for SGX, raising the PE-based target price to S\$14.08 (from S\$12.58), reflecting a 23x PE multiple on FY26 earnings (+1SD above the historical mean). The positives from EMDP are considered largely priced in, with no immediate catalysts for further upside.
• Potential Catalysts: Extended trading volatility, higher-than-expected SDAV/derivatives volumes, and earnings-accretive acquisitions could drive future share price appreciation.

PATMI forecasts for FY25–27 have been raised by about 1% due to stronger SDAV and forex futures assumptions, with headline PATMI now at S\$636.1m (FY25), S\$654.6m (FY26), and S\$671.3m (FY27).

Conclusion: Navigating Opportunities Across Asia’s Markets

Asian equity markets remain in focus with bullish technical indicators for major indices and dynamic sector rotations shaping opportunities for investors. Singapore’s market, led by SGX’s robust performance and regulatory enhancements, remains an attractive, albeit fairly valued, proposition. Meanwhile, index-specific strategies and sectoral preferences—ranging from defensive picks in Hong Kong to tactical plays in Thailand and bullish bias in Indonesia—offer a diversified playbook for regional investors.

Investors are encouraged to monitor resistance and support levels closely, capitalize on sector trends, and remain agile as policy changes and macroeconomic developments unfold across the region.