Broker: CGS International
Date of Report: June 27, 2025
Singapore Market Outlook: Bullish Reversal for AEM Holdings and Further Upside for Food Empire Holdings
Overview: Market Sentiment Turns Bullish Amid Dovish Fed Expectations
Financial markets are experiencing a surge in optimism as traders increase bets on accelerated U.S. interest-rate cuts. This anticipation follows reports that President Donald Trump may expedite the nomination of a new Federal Reserve chief, further fueling expectations of a more dovish monetary policy stance. The U.S. dollar slid to its lowest since April 2022, treasury yields declined across the curve, and stock futures advanced. Technology stocks, in particular, led the rally, buoyed by strong earnings from Micron Technology and persistent strength in AI-related chipmakers such as Nvidia.
- The Bloomberg dollar gauge dropped 0.5%.
- 10-year U.S. Treasury yields fell by 2 basis points to 4.27%.
- Markets now price in 63 basis points of Fed easing by year-end, up from 51 basis points last week.
- S&P 500 futures gained 0.4%, with technology and AI chip stocks leading the charge.
The positive sentiment is expected to propel the S&P 500 toward a new all-time high, as robust technology earnings continue to underpin risk appetite.
AEM Holdings Ltd: Bottom Bullish Reversal Signals Strong Upside Potential
Technical Buy Recommendation and Analysis
AEM Holdings Ltd is in the spotlight with a confirmed bottom bullish reversal, indicating renewed upside momentum after a recent correction. This Singapore-listed company specializes in semiconductor, instrumentation, and electronics test cell solutions, serving clients worldwide.
| Key Technical Levels |
Price (S\$) |
| Last Price |
1.42 |
| Support 1 |
1.30 |
| Support 2 |
1.00 |
| Entry Prices |
1.42, 1.20, 1.10 |
| Stop Loss |
0.98 |
| Resistance 1 |
1.77 |
| Resistance 2 |
2.30 |
| Target Price 1 |
1.75 |
| Target Price 2 |
2.22 |
| Target Price 3 |
2.50 |
| Target Price 4 |
2.80 |
Technical Highlights
- The stock has confirmed a V-shaped bottom and an ascending triangle reversal after breaking above the previous resistance, now support, at S\$1.30, accompanied by rising volume.
- Ichimoku cloud analysis indicates a strong bullish signal.
- The MACD signal and line have risen steadily toward the zero line, forming a larger bullish divergence with a positive histogram.
- The Stochastic Oscillator has generated a strong bullish momentum signal.
- The 23-period Rate of Change (ROC) is rising and remains positive.
- The Directional Movement Index confirms the bullish trend’s strength.
- Significant volume spikes were observed upon the breakout.
Given these robust technical signals, AEM Holdings appears poised for a continued upward move, with multiple target prices outlined above for investors to monitor.
Food Empire Holdings Ltd: Re-Rating Story Not Over
Food Empire Holdings Ltd (FEH) has delivered a remarkable share price performance, appreciating 80% year-to-date as of June 18, 2025. Analysts believe the re-rating story is far from over, with several catalysts on the horizon that could propel the stock even higher in the second half of 2025.
Key Investment Highlights
- FEH’s share price has risen 80% year-to-date through June 18, 2025.
- Further earnings upside is anticipated, especially with the upcoming 1H25 results in August, which could surprise on the upside for core net profit.
- The market has yet to fully price in the potential earnings uplift from the new Vietnam freeze-dried coffee powder production line, which is expected to commence in FY28.
- Analysts see potential for FEH to re-rate higher to 2 standard deviations above its average P/E multiple (14.2x), supporting a new target price of S\$2.28 based on a revised FY26 EPS forecast.
Sector and Ratings Framework
CGS International applies a clear and structured recommendation framework for stocks, sectors, and countries:
| Stock Rating |
Definition |
| Add |
Stock’s total return is expected to exceed 10% over the next 12 months. |
| Hold |
Total return expected between 0% and +10% over next 12 months. |
| Reduce |
Total return expected to fall below 0% over next 12 months. |
| Sector/Country Rating |
Definition |
| Overweight |
Positive absolute recommendation/above-market weight relative to benchmark. |
| Neutral |
Neutral absolute recommendation/market weight relative to benchmark. |
| Underweight |
Negative absolute recommendation/below-market weight relative to benchmark. |
Distribution of Ratings (as of March 31, 2025)
| Rating |
Distribution (%) |
Investment Banking Clients (%) |
| Add |
71.0% |
1.3% |
| Hold |
20.9% |
0.7% |
| Reduce |
8.2% |
0.4% |
Total companies under coverage for the quarter ended March 31, 2025: 551.
Conclusion: Bullish Opportunities and Catalysts Ahead
The Singapore equity market is currently driven by a highly supportive global backdrop—shaped by expectations of a more accommodative U.S. Federal Reserve and resilient technology sector earnings. AEM Holdings Ltd stands out with a technically-driven bullish reversal and multiple upside targets, while Food Empire Holdings Ltd continues to impress with fundamental catalysts and room for further re-rating. Investors are encouraged to closely monitor upcoming results and technical levels for both companies as the second half of 2025 unfolds.
