Broker: CGS International
Date of Report: June 25, 2025

Singapore Stocks Spotlight: Q&M Dental Group and Stoneweg Europe Stapled Trust Poised for Growth Amid Market Optimism

Market Overview: Optimism Grows as Rate Cut Bets Rise

Global equities continue to rally, fueled by hopes of de-escalation in the Middle East and dovish signals from the Federal Reserve. Investors are increasingly confident that contained inflation could prompt the Fed to cut rates as early as July, with money markets now fully pricing in two rate reductions by year-end. Recent remarks from Fed Chair Jerome Powell suggest the central bank is in no rush but remains flexible, with upcoming earnings season and the Fed’s next meeting in late July firmly in focus for market participants. Meanwhile, a drop in consumer confidence has further bolstered expectations of policy easing.
Key market movements include:

• The S&P 500 has climbed 1%, approaching all-time highs.
• Bond yields and the US dollar have fallen.
• Oil prices have plunged.
• Treasury two-year yields are nearing their lowest since early May.
• Odds of a July rate cut have surged to near 20%, up from zero just a week ago.

Investors and consumers remain cautious but hopeful for the second half of 2025, with attention soon shifting to corporate earnings and central bank decisions.

Q&M Dental Group Singapore Ltd: Early Uptrend Signals Further Gains

Technical Buy | Last Price: S\$0.41
Q&M Dental Group Singapore Ltd, a leading operator of dental clinics offering a wide range of dental services, is demonstrating robust technical momentum that signals an early-stage uptrend.

Company Profile: Q&M Dental Group (Singapore) Limited operates clinics offering a comprehensive suite of dental services, including aesthetic, pediatric, and general dentistry. Services also cover crowns, dentures, braces, gum treatments, oral surgery, and treatments for snoring and teeth grinding.
Technical Analysis Snapshot:

• Q&M Dental’s share price has reached the third target price of S\$0.40 from a previous report, delivering a gain of over 30%.
• The stock has maintained a steady uptrend channel since November 2023.
• A bullish breakout from a flag formation indicates strong continuation of the uptrend.
• The MACD histogram is positive, with both the signal and MACD lines rising toward the zero line.
• While the Stochastic Oscillator shows overbought conditions, a lack of price correction signals persistent bullish pressure.
• The 23-period Rate of Change (ROC) has rebounded and remains positive.
• Trading volume is expanding healthily, reinforcing the strength of the uptrend.

The technical indicators collectively suggest the uptrend is in its early stages, with further upside potential toward the higher target prices.

Stoneweg Europe Stapled Trust (SERT): Strategic Expansion into European Data Centres

Reiterate Add | Target Price: €1.93
Stoneweg Europe Stapled Trust (SERT) is reinforcing its growth strategy with a substantial €50 million investment in a European data centre fund (IDC). This strategic move is expected to enhance SERT’s net asset value (NAV) and unlock further valuation potential.
Key Takeaways:

• SERT expands data centre exposure with a €50 million investment in an IDC fund.
• This strategic investment aims to boost NAV and drive long-term valuation upside.
• The recommendation to “Add” is reiterated, with an unchanged target price of €1.93.

Disclosures and Regulatory Information

CGS International provides its research based on reliable sources believed to be accurate at the time of writing. The content is for informational purposes and is not an offer or recommendation to buy or sell any securities or investment products. The report is intended for the exclusive use of institutional and professional investors in accordance with jurisdictional regulations. Readers should consult their own financial advisers before making investment decisions.

Rating Definitions and Coverage Distribution

Stock Ratings:

• 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.

Sector and Country Ratings:

• Overweight: Positive recommendation versus market or benchmark.
• Neutral: Neutral recommendation versus market or benchmark.
• Underweight: Negative recommendation versus market or benchmark.

Data as of quarter ended March 31, 2025; 551 companies under coverage.

Conclusion: Opportunities Amid Market Shifts

With the global macro backdrop turning increasingly favorable for equities, Singapore-listed names like Q&M Dental Group and Stoneweg Europe Stapled Trust stand out for their technical and strategic merits. Watch for further upside in Q&M as its uptrend gains momentum, and monitor SERT’s NAV and valuation as its data centre strategy unfolds. Both stocks are well-positioned for investors seeking exposure to resilient growth amid dynamic market conditions.