Broker: CGS International
Date of Report: June 23, 2025
Keppel Corp Set for Bullish Rebound as Geopolitical Tensions Rise: Singapore and Thailand Retail Strategy Insights
Market Overview: Geopolitics and Government Stability Shape Sentiment
Recent dramatic geopolitical developments are sending ripples through global markets. President Donald Trump, previously known for an anti-war stance, has made a sharp pivot by authorizing U.S. strikes on Iranian nuclear facilities at Fordow, Natanz, and Isfahan. These actions, intended to support Israel’s offensive and curb Iran’s nuclear ambitions, signal a significant U.S. reengagement in Middle Eastern conflict zones. Trump’s rhetoric is clear: Iran must return to negotiations or face further consequences, threatening “tragedy far greater than we have witnessed over the last eight days.” This marks a notable shift for a president who campaigned on reducing U.S. military entanglements abroad and has previously prioritized commerce and investment in the region over military intervention.
In Thailand, political uncertainty persists, but the current Pheu Thai-led coalition government appears likely to survive despite Bhum Jai Thai’s withdrawal. The market expects continued volatility for the SET Index over the coming months, but the core coalition is holding. This environment creates both risks and opportunities for investors.
Thailand Strategy: Government Survival and Top Equity Picks
- The Pheu Thai-led coalition is expected to survive, despite a reduced majority in parliament.
- Market volatility is anticipated for the SET Index in the months ahead.
- Top Stock Picks for Thailand: BDMS, CPN, ERW, GULF, MTC, and PR9.
Keppel Corporation Ltd: Technical Buy Signal Amid Bullish Momentum
Company Overview: Keppel Corporation Limited operates across key sectors such as offshore and marine, infrastructure, property investment and development, telecommunications and transportation, energy, and engineering.
Latest Price: S\$7.41 Technical Analysis Summary: Keppel Corp’s price action suggests the completion of a complex and extended corrective wave, with a bullish impulse wave likely to begin. The stock has maintained a strong uptrend since March 2020, and several technical indicators confirm robust bullish momentum.
| Entry Price(s) |
Support 1 |
Support 2 |
Stop Loss |
Resistance 1 |
Resistance 2 |
Target Price 1 |
Target Price 2 |
Target Price 3 |
Target Price 4 |
| 7.41, 7.20, 7.00 |
7.00 |
6.28 |
6.61 |
7.49 |
8.14 |
8.00 |
9.50 |
10.30 |
12.00 |
Technical Indicator Highlights
- Strong and clear uptrend since March 2020.
- Ichimoku indicator shows a bullish signal, confirmed by a piercing line candle closing above the 9-period conversion line.
- MACD histogram is positive; both MACD and signal lines remain above zero.
- Stochastic Oscillator shows strong upward movement, reinforcing the bullish outlook.
- 23-period Rate of Change (ROC) rebounded and remains positive.
- Directional Movement Index confirms robust bullish strength.
- Volume expansion is healthy, supporting the upward move.
Analyst Details
Risk and Volatility Outlook
For Thailand, the political landscape remains fluid, and while the government is likely to persist, a reduced majority could heighten volatility. The SET Index is expected to be particularly sensitive to political headlines in the coming months.
Keppel Corp, meanwhile, stands out for its technical strength and potential for significant upside, with well-defined support and resistance levels and bullish momentum across multiple technical indicators.
Regulatory and Disclosure Notes
CGS International operates across multiple jurisdictions and adheres to local regulatory frameworks. No significant proprietary or analyst interests exist in the covered companies as of the report date. The report is prepared for informational purposes and is not a solicitation to buy or sell securities.
Rating Definitions and Distribution
| Rating |
Definition |
| Add |
Total return expected to exceed 10% over the next 12 months. |
| Hold |
Total return expected between 0% and 10% over the next 12 months. |
| Reduce |
Total return expected to fall below 0% over the next 12 months. |
| Rating |
Coverage (%) |
Investment Banking Clients (%) |
| Add |
71.0 |
1.3 |
| Hold |
20.9 |
0.7 |
| Reduce |
8.2 |
0.4 |
Distribution as of quarter ended March 31, 2025, covering 551 companies.
Conclusion: Navigating Opportunity Amid Uncertainty
With global tensions and regional political risks dominating the backdrop, investors should stay alert for volatility while focusing on technically strong opportunities. Keppel Corporation’s technical outlook, supported by a robust uptrend and multiple bullish indicators, makes it a compelling watch for those seeking exposure to Singapore’s diversified conglomerates. In Thailand, maintaining exposure to top sector picks such as BDMS, CPN, ERW, GULF, MTC, and PR9 could help navigate near-term volatility while positioning for medium-term recovery.
As always, investors are urged to consider their own financial circumstances and consult with professional advisors before making investment decisions.
