Broker: CGS International
Date of Report: July 18, 2025
Southeast Asia Market Insights: Bullish Reversals, Retail Resilience, and Strategic Partnerships
Market Overview: Economic Resilience and Shifting Rate Cut Expectations
Global equities advanced as positive macroeconomic data continued to bolster investor confidence. Key highlights include:
- Retail sales exceeded expectations, and jobless claims dropped, underscoring ongoing economic strength in the U.S.
- The dollar resumed its July rally, on track for its best month in 2025.
- Short-dated U.S. Treasuries underperformed, with two-year yields rising while 30-year yields declined.
- Money markets now anticipate fewer than two Federal Reserve rate cuts in 2025, down from three at the start of July.
- Market volatility related to Fed Chair Jerome Powell’s future subsided following President Donald Trump’s remarks downplaying a leadership change.
- Robust earnings from companies like PepsiCo and United Airlines contributed to the bullish sentiment, with tech led by Taiwan Semiconductor Manufacturing Co. fueling AI-driven optimism.
U.S. retail sales demonstrated a broad-based uptick, tempering concerns over waning consumer demand. Meanwhile, initial unemployment claims fell for the fifth consecutive week, signaling continued labor market strength. However, the uptick in consumer goods prices last month suggests that while retail data are encouraging, they should be viewed with measured optimism.
Pollux Properties Ltd: Technical Buy with Confirmed Bottom Reversal
Pollux Properties Ltd, a Singapore-listed property developer focused on residential and commercial projects, is exhibiting strong technical signals indicating a bullish reversal at the bottom of its recent trading range.
| Price Levels & Technical Targets |
Value (SGD) |
| Last Price |
0.027 |
| Entry Prices |
0.027, 0.024, 0.020 |
| Support 1 |
0.024 |
| Support 2 |
0.020 |
| Stop Loss |
0.018 |
| Resistance 1 |
0.034 |
| Resistance 2 |
0.055 |
| Target Price 1 |
0.038 |
| Target Price 2 |
0.045 |
| Target Price 3 |
0.056 |
| Target Price 4 |
0.075 |
Technical Snapshot:
- The stock has confirmed an inverted head and shoulders formation, pointing to further upside potential.
- A bullish breakout above a large falling wedge consolidates the reversal at the bottom.
- Ichimoku indicators confirm a healthy bullish signal, with the stock closing above all key Ichimoku lines.
- MACD and signal lines have crossed at the bottom, with a positive histogram.
- The Stochastic Oscillator shows an oversold crossover confirmation.
- The 23-period Rate of Change (ROC) is positive.
- Directional Movement Index (DMI) indicates steady bullish momentum.
- Volume spikes accompanied the bullish breakout, adding conviction to the trend reversal.
Analyst: CHUA Wei Ren, CMT Contact: [email protected]
Food Empire Holdings Ltd: Justifying a Continued Re-Rating
Food Empire Holdings Ltd (FEH) continues to justify its re-rating with fresh strategic initiatives and strong growth prospects.
- FEH has announced a new collaboration with Santan, enabling its products to be available both on AirAsia flights and at on-the-ground touchpoints.
- This marks the first in a series of business initiatives anticipated from FEH’s partnership with private equity firm Ikhlas Capital.
- Management’s drive to grow the business, complemented by the Monetary Authority of Singapore’s S\$5bn Enterprise Development Grant (EMDP), could lead to a valuation re-rating for FEH to 17x FY26F P/E—significantly above its nine-year average by three standard deviations.
Sector and Ratings Framework
The report utilizes a clear and structured ratings system for stocks, sectors, and countries:
| Stock Rating |
Definition |
| Add |
Total return expected to exceed 10% over the next 12 months |
| Hold |
Total return expected to be between 0% and 10% over the next 12 months |
| Reduce |
Total return expected to fall below 0% over the next 12 months |
| Sector/Country Rating |
Definition |
| Overweight |
Positive absolute recommendation/above-market weight |
| Neutral |
Neutral absolute recommendation/neutral market weight |
| Underweight |
Negative absolute recommendation/below-market weight |
Rating Distribution (as of June 30, 2025):
- Add: 70.6% (1.1% investment banking clients)
- Hold: 20.5% (0.5% investment banking clients)
- Reduce: 8.9% (0.5% investment banking clients)
- 561 companies under coverage for the quarter ended June 30, 2025
Important Disclosures and Jurisdictional Notes
The research is intended for professional, institutional, and sophisticated investors. Distribution and use are subject to local laws, regulations, and licensing requirements across all covered jurisdictions, including Singapore, Hong Kong, Malaysia, Thailand, Indonesia, South Korea, the United States, and the European Economic Area.
CGS International and its affiliates may hold proprietary positions, provide investment services, or seek business relationships with covered companies, but as of the report date, no specific interest disclosures were made regarding the companies discussed.
The report provides general information and does not constitute investment advice. Investors should evaluate the information in light of their own objectives, financial situation, and consult appropriate advisers before making any investment decisions.
Conclusion: Market Strength, Strategic Moves, and Technical Opportunities
The July 2025 research highlights resilience in global consumer demand, bullish technical setups in select Singapore equities, and a forward-looking approach to sector re-ratings. Investors should monitor developments in both macroeconomic data and company-specific catalysts, particularly in the wake of confirmed technical reversals and innovative business partnerships.
For further information, readers can contact CGS International or the analyst directly.
