Broker Name: CGS International
Date of Report: July 15, 2025
Singapore Stocks in Focus: Delfi Ltd Signals Bullish Reversal; BGF Retail Faces Valuation Pressure Amid Market Volatility
Market Recap: Global Uncertainty and Key Earnings Ahead
Global equity markets showed increased volatility as geopolitical tensions heightened, with President Donald Trump intensifying tariff threats against the European Union and Mexico. Investors are bracing for corporate earnings reports from major banks, while keeping a close eye on upcoming inflation data and global bond yields.
- The S&P 500 fluctuated after hitting multiple all-time highs, as market participants anticipate Corporate America’s weakest earnings season since mid-2023.
- Short-dated bond yields in the US declined, and 10-year Treasury yields remained steady around 4.4%.
- Japan’s long-term bond market saw intensified declines, raising red flags for global debt markets.
- Bitcoin surged above \$120,000, driven by investor optimism and upcoming US legislative developments during “Crypto Week.”
As inflationary pressures begin to re-emerge, companies are starting to pass on higher import costs to consumers, with economists expecting a gradual acceleration in price growth through 2025.
Delfi Ltd: Technical Buy Recommendation on Bullish Reversal
Company Overview: Delfi Limited is a leading manufacturer, marketer, and distributor of chocolate confectionery products, offering a diverse range of chocolates, dragees, enrobed wafers, and biscuits across Southeast Asia.
| Last Price |
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 |
| 0.78 |
0.78, 0.72, 0.68 |
0.73 |
0.65 |
0.62 |
0.85 |
1.02 |
0.92 |
1.00 |
1.04 |
1.25 |
Technical Analysis:
- Delfi Ltd has broken out of its major downtrend, with the formation of an inverted head and shoulder pattern acting as a bullish reversal signal.
- The Ichimoku indicator signals a healthy bullish trend, especially as the stock closes above all Ichimoku components.
- The MACD signal is rising robustly towards the zero line with a positive histogram, supporting bullish momentum.
- The 23-period Rate of Change (ROC) is positive, indicating improved price momentum.
- The Directional Movement Index reflects strong and steady bullish strength.
- Trading volumes are expanding healthily, confirming the strength of the move.
Trading Strategy:
- Buy on dips at suggested entry points: 0.78, 0.72, and 0.68.
- Stop loss is set at 0.62 for downside protection.
- Key supports: 0.73 and 0.65; key resistances at 0.85 and 1.02.
- Ambitious upside targets: 0.92, 1.00, 1.04, and 1.25.
Overall, the technical backdrop presents a compelling case for a bullish reversal in Delfi Ltd, supported by momentum indicators and improving volumes.
BGF Retail: Facing Rising Valuation Pressure Despite Consumption Boost
Company Overview: BGF Retail is highlighted for its ongoing valuation challenges, driven by external and operational factors impacting its near-term performance.
- Expected to record a second consecutive quarter of negative Same Store Sales Growth (SSSG) in 2Q25, primarily due to unfavorable weather conditions.
- Share price rally since June 2025 has been fueled by expectations of a boost from consumption vouchers.
- Net topline boost estimated conservatively at approximately W200 billion for the third quarter of 2025.
- Recommendation: Reiterate Add on prospects of sales growth from voucher-driven demand, albeit with a reduced target price of W140,000.
Investors should remain mindful of valuation headwinds but consider the potential for a short-term sales uplift as consumption incentives roll out.
Market Outlook: Cautious Optimism Amid Pivotal Earnings Season
The coming weeks are seen as pivotal for global markets, with major earnings releases and ongoing trade negotiations expected to set the tone for risk assets. While subdued profit expectations may provide a low bar for outperformance, ongoing tariff threats and inflationary trends present key risks to watch.
- Investors are advised to monitor both top-down macro drivers and company-specific technical signals when positioning for the months ahead.
- With inflation starting to pick up, focus will remain on companies’ ability to manage costs and pass on higher prices to consumers.
Disclosure and Regulatory Information
This report is published for informational purposes and is intended for institutional and accredited investors. All recommendations and data are based on information considered reliable as of the report date but are subject to change without notice. Investors should consider their own financial circumstances and consult professional advisors before making investment decisions.
| Stock Ratings |
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. |
For the quarter ended June 30, 2025, the distribution of stock ratings across CGS International’s coverage universe is as follows:
| Rating |
Distribution (%) |
Investment Banking Clients (%) |
| Add |
70.6% |
1.1% |
| Hold |
20.5% |
0.5% |
| Reduce |
8.9% |
0.5% |
CGS International, its affiliates, and analysts may have positions in the covered securities and may engage in business relationships with the mentioned companies.
Conclusion: Navigating Opportunities and Risks
With market volatility set to persist amid macroeconomic and geopolitical uncertainty, tactical opportunities remain for discerning investors. Delfi Ltd stands out as a technical buy on signs of a bullish reversal, while BGF Retail offers potential upside from voucher-driven sales, tempered by valuation concerns. Investors should stay attuned to both global and company-specific developments as the earnings season unfolds.
