Broker: CGS International
Date of Report: July 9, 2025

Beng Kuang Marine: Bullish Signals Emerge as Correction Nears End – In-Depth Technical & Market Outlook

Market Recap: Global Trade Tensions and Market Volatility

Global equity markets recently struggled near all-time highs as geopolitical risks and trade headlines regained center stage. U.S. President Donald Trump confirmed that the August deadline for reciprocal tariffs on foreign imports would not be extended, spurring renewed volatility. Notably, copper prices surged after the announcement of a 50% tariff, with copper producer Freeport-McMoRan rallying in response. Treasuries slipped, with 30-year yields approaching 5%, following sell-offs in Japanese and German bonds. A significant \$58 billion U.S. three-year note auction saw soft demand, and the dollar wavered on the uncertainty.

Within the technology sector, Tesla climbed while Amazon slipped at the start of its Prime Day sales event. The U.S. administration also hinted at the possibility of a new tariff rate on European Union imports within days, citing frustration over EU taxes and fines on U.S. technology firms.

While some market watchers believe ongoing negotiations or deadline extensions could see markets shake off these risks, a more aggressive stance on tariffs could trigger a 5% to 10% pullback in equities—potentially viewed as a buying opportunity by retail investors.

Indonesia Economic Update: Impact of Higher U.S. Tariffs

• The U.S. maintained a 32% reciprocal tariff on Indonesian goods, unchanged from the initial rate set in April 2025 and higher than baseline expectations.
• Despite ongoing negotiations, the elevated tariff is expected to have a negative but manageable impact on Indonesia’s economy. Forecasted 2025 GDP growth has been revised down slightly from the baseline to approximately 4.7%.
• Fiscal stimulus is considered necessary to offset the tariff shock, but with limitations. Indonesia’s central bank, Bank Indonesia (BI), may need to assume a greater role in economic stimulation pending fiscal optimization.
• Vietnam and Malaysia, which have similar export profiles to the U.S. but face lower tariffs, are likely to become tougher competitors for Indonesia in the export market. Non-tariff reforms in Indonesia are seen as crucial to improving competitiveness.

Beng Kuang Marine Ltd: Technical Buy Signal as Correction Nears Completion

Company Snapshot:

• Last Price: S\$0.22
• Business Overview: Beng Kuang Marine Limited specializes in corrosion prevention and infrastructure engineering, offering hydro-jet and tank cleaning services, as well as trading copper slag and waste management services across Asia.

Technical Analysis and Trade Strategy

After a notable correction, Beng Kuang Marine Ltd is showing strong signals of an impending bullish continuation. Technical indicators suggest the correction phase is close to ending, with robust buying activity observed off the major S\$0.14 support level. The stock’s momentum is strengthening, underpinned by multiple technical factors:

Key Technical Observations

• Correction Nearing End: Strong buying support seen above S\$0.14, suggesting the extended correction is likely over.
• Major Uptrend Intact: Price structure continues to support a bullish outlook.
• Ichimoku Cloud: The stock has closed above all relevant Ichimoku indicators, providing a healthy bullish signal.
• MACD: MACD signal and line have crossed at the bottom, indicating a possible reversal, with a positive histogram.
• Stochastic Oscillator: Rising steadily and confirming bullish momentum; oversold crossover signal present.
• Rate of Change (ROC): 23-period ROC is positive and rising, reinforcing bullish sentiment.
• Directional Movement Index: Indicates steady bullish strength.
• Volume: Expanding healthily, supporting the case for a move higher.

Recommendation Framework: Understanding the Ratings

CGS International employs a transparent rating system for stocks and sectors, helping investors understand expectations for total return over a 12-month horizon.

• Add: Stock’s total return expected to exceed 10%.
• Hold: Total return expected between 0% and 10%.
• Reduce: Total return expected to fall below 0%.

Sector and country ratings follow a similar Overweight, Neutral, and Underweight system, guiding relative positioning against benchmarks.

As of June 30, 2025, CGS International covers 561 companies under this framework.

Comprehensive Disclaimers and Global Regulatory Footprint

CGS International operates across major financial jurisdictions, including Singapore, Hong Kong, Indonesia, Malaysia, South Korea, Thailand, and more. The report is strictly for informational purposes and is intended for professional, institutional, or sophisticated investors as defined in respective jurisdictions.

The report emphasizes the importance of independent evaluation, professional advice, and compliance with relevant regulations before acting on any investment opportunities discussed.

Conclusion: Beng Kuang Marine Positioned for Rebound Amid Market Uncertainty

Beng Kuang Marine Ltd stands out with a compelling technical setup suggesting the extended corrective phase is drawing to a close. With clear bullish signals across multiple indicators, the stock could be poised for a robust recovery, supported by a healthy uptrend and rising momentum. The broader macroeconomic uncertainty—driven by global trade tensions and tariff fluctuations—remains a critical backdrop for investors, but current technicals suggest Beng Kuang Marine is one to watch for potential upside in the coming months.

Investors are encouraged to carefully consider their individual objectives and consult professional advisors, keeping in mind the nuanced risks and opportunities in today’s dynamic market environment.