Broker: CGS International
Date of Report: July 16, 2025

First Resources Ltd: Riding a Strong Uptrend — Key Technical Insights and Sector Outlook

Market Recap: Inflation, Tariffs, and Wall Street Sentiment

The latest market movements were shaped by a complex interplay of inflation data, tariff concerns, and central bank expectations. While underlying US inflation remained subdued for a fifth consecutive month, details revealed that many companies are starting to pass tariff-related costs onto consumers. This has kept the Federal Reserve in a cautious stance, with markets now assigning only a slightly higher-than-even chance of a rate cut in September. The S&P 500 saw initial gains fade after briefly topping 6,300, driven by mixed performances among financial giants and a surge in tech shares, notably Nvidia and AMD, on renewed China chip sales. Meanwhile, yields on long-term Treasuries rose, and the US dollar strengthened.

Singapore REITs: Navigating a Mixed Reporting Season

• Sector results are expected to be a mixed bag, with overall sector DPU (Distribution Per Unit) projected to remain largely unchanged year-on-year.
• Key investor focus areas:
  • Updated guidance on debt costs
  • Potential impact from global tariff hikes
• Sector rating: Overweight
• Top picks: CLAR and KDCREIT

First Resources Ltd: Technical Buy — Uptrend Channel Steady Mode

Company Overview: First Resources Limited is a leading upstream operator in the palm oil industry, focusing on the cultivation and harvesting of oil palms. The company processes fresh fruit bunches into crude palm oil for both local and export markets.

Technical Analysis Snapshot:

• First Resources Ltd has reached its second target price of 1.62, as per the previous analysis dated October 28, 2024.
• The stock continues to exhibit robust bullish signals, maintaining its position within a major uptrend channel.
• Ichimoku indicators paint a bullish outlook, especially after price closed above all key Ichimoku levels.
• MACD indicator remains strongly above the zero line, supported by a positive histogram.
• Stochastic Oscillator has moved into overbought territory, confirming strong momentum.
• The 23-period Rate of Change (ROC) remains positive, indicating sustained upward price momentum.
• Directional Movement Index (DMI) shows persistent and steady bullish strength.
• Trading volume is experiencing healthy expansion, supporting the ongoing uptrend.

Analyst Contact

CHUA Wei Ren, CMT
T (65) 6210 8612
E: [email protected]

Recommendation and Rating Definitions

• 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.

The total expected return combines the percentage difference between target and current price plus forward net dividend yields. Targets are set with a 12-month investment horizon.

Sector and Country Ratings

• Overweight: Above-benchmark weighting recommended
• Neutral: Benchmark weighting recommended
• Underweight: Below-benchmark weighting recommended

(Data as of quarter ended June 30, 2025 — covering 561 companies)

Key Disclosures and Regulatory Information

CGS International operates under strict regulatory frameworks across multiple jurisdictions, ensuring compliance and transparency for institutional clients. The report is intended for informational purposes and should not be construed as an offer or solicitation to buy or sell any security. Investors are urged to evaluate this information in light of their investment objectives, financial situation, and consult independent advisors as appropriate.

Conclusion: Navigating Opportunities Amid Uncertainty

With First Resources Ltd displaying strong technical signals and the Singapore REIT sector poised for mixed yet stable performance, opportunities remain for discerning investors. Staying attuned to macroeconomic shifts, tariff developments, and company-specific technicals will be crucial for capitalizing on emerging trends in the months ahead.