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

Hock Lian Seng Holdings: Technical Buy Signal Amid Bullish Momentum and Global Trade Volatility

Market Recap: Volatility Returns as Trade Tensions Escalate

Global stock markets are showing signs of strain as trade tensions resurface. The S&P 500 hovered near all-time highs but failed to break out, while US President Donald Trump reaffirmed his intention to impose steep reciprocal tariffs starting August, dashing hopes of an extension or renewed trade talks. In the commodities space, copper surged after the US president called for a 50% tariff, propelling copper producer Freeport-McMoRan Inc. higher. Meanwhile, megacaps saw mixed performance: Tesla climbed, while Amazon dipped at the start of its Prime Day sales event.

Bond markets reflected the uncertainty, with 30-year US Treasury yields approaching 5% following sell-offs in Japanese and German bonds. A \$58 billion US sale of three-year notes drew tepid demand, hinting at investor caution ahead of further auctions. The US dollar wavered, and the market remains on alert for headline-driven swings.

Trade War Watch: Tariff Impacts and Economic Outlook for Indonesia

• The US has maintained a 32% reciprocal tariff on Indonesia, unchanged from the initial rate set in April 2025, and notably above baseline assumptions, despite ongoing negotiations.
• Economic projections have been trimmed: 2025 GDP growth is now expected to be closer to 4.7%, slightly lower than the previous 4.8% forecast.
• Fiscal stimulus is seen as necessary to cushion the impact, but fiscal space is constrained. The Bank of Indonesia may need to step in to drive economic stimulation.
• Vietnam and Malaysia, with similar export profiles, face lower US tariff rates, intensifying competition for Indonesia. Non-tariff reforms are recommended to strengthen Indonesia’s export position.

Technical Spotlight: Hock Lian Seng Holdings Ltd – Bullish Continuation in Play

Company Overview: Hock Lian Seng Holdings Ltd is a Singapore-based civil engineering specialist. The company’s portfolio includes major infrastructure works such as bridges, expressways, tunnels, MRT lines, port facilities, and water and sewage systems. Additionally, Hock Lian Seng procures and supplies building materials, notably concreting sand and aggregates, to the construction industry.

Technical Analysis: Bullish Momentum Confirmed

• The stock has broken out of an ascending triangle formation, supported by strong and rising trading volume.
• The major uptrend remains intact, with all technical indicators signaling bullish continuation.
• Ichimoku analysis confirms a healthy bullish signal, especially after the stock closed above all Ichimoku indicators.
• MACD line and signal are above the zero line, with a positive histogram, indicating continued upward momentum.
• The Stochastic Oscillator is trending upwards, which further affirms the bullish momentum.
• The 23-period Rate of Change (ROC) is positive and rising.
• The Directional Movement Index (DMI) shows steady bullish strength.
• Volume expansion remains healthy, providing further confirmation of trend strength.

Investment View: Opportunity Amid Market Pullbacks

Despite headline risks from trade tensions, the report notes that pullbacks of 5-10% in the broader stock market may be viewed as buying opportunities by retail investors, unless trade negotiations deteriorate significantly. The technical outlook for Hock Lian Seng Holdings Ltd is robust, with multiple indicators aligning for a continued bullish trend and substantial upside potential if resistance levels are breached.

Brokerage Disclosure and Analyst Independence

• The analyst certifies that the views expressed are independent and unbiased, with no direct compensation tied to investment banking transactions or specific recommendations.
• CGS International and its affiliates may hold positions in the covered securities and may have business relationships with the company.
• This research is intended for informational purposes only and is directed at professional, institutional, or sophisticated investors in accordance with regional regulations.

For further details, consult CGS International’s full terms and regulatory disclosures.

Stock Rating and Recommendation Framework

As of the last quarter, the distribution of ratings across 561 covered companies was: Add 70.6%, Hold 20.5%, Reduce 8.9%.

Conclusion: Hock Lian Seng Holdings – Technical Buy on Firm Bullish Trajectory

Hock Lian Seng Holdings Ltd stands out as a compelling technical buy, buoyed by strong momentum, positive technical confirmations, and the resilience of its core business in infrastructure and construction. Investors should monitor support and resistance levels closely and consider the company’s robust fundamentals and technical set-up as a potential opportunity amid broader market volatility. Stay attuned to ongoing trade developments, which may drive further swings in market sentiment and sector dynamics.