Broker: CGS International
Date of Report: July 29, 2025

Del Monte Pacific and Singapore Airlines: Technical Analysis and Strategic Insights for Investors

Market Recap: Global Sentiment and Key Events

The week began with heightened market activity, as Wall Street equities remained at all-time highs while the US dollar posted its largest gain since May. A tariff agreement between the US and the European Union renewed hopes for a continued trade truce with China, pushing the S&P 500 to briefly surpass 6,400. Meanwhile, oil prices advanced as President Trump indicated a shorter timeline for a Russia-Ukraine truce. The Federal Reserve is expected to keep rates unchanged during its upcoming meeting, and major tech earnings—representing a combined market cap of \$11.3 trillion—are set to be released, making this one of the busiest weeks of the year for financial markets.

Singapore Airlines: Time to Take Profit Ahead of Dividend Ex-Date

• Performance Recap: 1QFY3/26 results underperformed expectations, primarily due to significant losses from its stake in Air India, despite robust performance in the core Singapore business.
• Investment Call: The recommendation is downgraded from Hold to Reduce. The share price has rallied strongly in anticipation of the 30 Singapore cents final dividend per share, with the ex-date set for August 8, 2025.
• Target Price Adjustment: The target price is lowered slightly to S\$6.80, based on a target end-CY25F price-to-book value (P/BV) multiple of 1.3x, which is two standard deviations above the mean since 2011.

Investors are advised to consider taking profit before the dividend ex-date, as the short-term outlook suggests limited upside following the recent run-up.

Del Monte Pacific Ltd: Technical Buy Opportunity with V-Shaped Recovery

Company Overview:
Del Monte Pacific Limited focuses on producing and marketing packaged vegetables, fruits, beverages, and culinary products. The group holds exclusive rights to the Del Monte brand for packaged goods in the USA, South America, Philippines, the Indian subcontinent, and Myanmar, and the S&W brand globally (except Australia and New Zealand).

Technical Analysis Snapshot

Technical Indicators and Signals

• V-Shaped Bottom: Del Monte Pacific’s chart exhibits a classic V-shaped bottom, indicating a strong bullish reversal and a likely return to an upward trend.
• Ichimoku Cloud: Generates a robust bullish signal, supporting the potential for continued price appreciation.
• MACD: Both the signal and MACD lines are rising toward the zero line, with the histogram remaining positive.
• Stochastic Oscillator: Demonstrates a steady rise after an oversold crossover, suggesting growing momentum.
• 23-period Rate of Change (ROC): Currently positive, reflecting improving price momentum.
• Directional Movement Index: Indicates strengthening bullish pressure.
• Volume: A noticeable surge in trading volume suggests anticipation of a potential breakout above resistance levels.

Analyst Commentary: The technical setup for Del Monte Pacific points to multiple bullish signals across various indicators. The V-shaped bottom is particularly noteworthy, often preceding significant rallies. Coupled with supportive momentum indicators and increased trading activity, the stock has set clear targets, with the first objective at SGD 0.091 and further upside possibilities up to SGD 0.210.

Global and Sectoral Outlook: Key Events to Watch

• Ongoing US-China trade negotiations aim to extend the tariff truce beyond the mid-August deadline, with implications for global supply chains.
• Major tech earnings are in focus, with four mega-cap companies reporting results that could sway overall market sentiment.
• The US Treasury plans to maintain its current approach to note and bond sales, with borrowing estimates for the quarter reaching \$1 trillion.

Stock Ratings and Recommendations Framework

Sector and country ratings follow a similar structure, with “Overweight,” “Neutral,” and “Underweight” designations guiding investors on relative positioning.

Important Disclosures and Regulatory Notes

This analysis is intended solely for informational purposes and for institutional, professional, or accredited investors as defined by applicable regulations in each jurisdiction. CGS International and its affiliates may hold positions, provide market-making, or seek investment banking relationships with covered companies. Investors are advised to evaluate the suitability of the information in light of their own objectives and consult professional advisors before making investment decisions.

Conclusion: Key Takeaways for Investors

• Singapore Airlines: Take profit ahead of the dividend ex-date, as near-term upside is limited after a strong price run-up and underperformance in recent results.
• Del Monte Pacific: Technical indicators suggest a bullish reversal, with multiple upside targets. The stock is well-positioned for a breakout, supported by both chart patterns and momentum signals.

With global markets facing a confluence of pivotal events—including central bank decisions, trade talks, and major earnings releases—investors should remain vigilant and agile, leveraging both technical and fundamental insights for optimal portfolio positioning.