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

Singapore Market Update: Early Uptrend Signals for Fu Yu Corp, Singapore Airlines Dividend Strategy, and Global Market Insights

Global Markets Recap: A Week Packed with Catalysts

Wall Street closed at all-time highs, with the dollar posting its strongest gain since May. Market momentum was buoyed by a tariff agreement between the Trump administration and the European Union, raising hopes for a continued China trade truce. The S&P 500 briefly surpassed 6,400 before settling little changed, while oil prices rose as President Trump hinted at a shorter timeline for a potential Russia-Ukraine truce.

This week promises to be pivotal, as investors brace for a Federal Reserve decision on interest rates (expected to remain unchanged), a slew of key U.S. economic data, and earnings releases from four mega-cap tech companies with a combined market capitalization of \$11.3 trillion. U.S. and Chinese negotiators are working to extend their tariff truce beyond mid-August, while Canada remains locked in trade talks with the U.S. Additionally, the U.S. Treasury increased its federal borrowing estimate to \$1 trillion for the current quarter, reflecting debt limit distortions, and will soon announce its note and bond sale plans.

Singapore Airlines: Dividend Play Nears, Strategic Profit-Taking Recommended

Singapore Airlines (SIA) reported Q1 FY3/26 results that fell short of expectations, primarily due to Air India’s losses, despite strong performance from the Singapore operations.

• Recommendation: Downgraded from Hold to Reduce, as the share price has rallied ahead of the 30 Scts final dividend per share (DPS) ex-date on August 8, 2025.
• Target Price: Slightly reduced to S\$6.80, based on a target end-CY25F price-to-book value (P/BV) multiple of 1.3x, which is +2 standard deviations from the average since 2011.

Investors are advised to consider taking profits before the dividend ex-date, given the stock’s strong recent performance and the underwhelming quarterly results.

Technical Spotlight: Fu Yu Corp Ltd – Early Uptrend Confirmed

Fu Yu Corporation Limited is emerging as a technical buy opportunity, with its stock price action indicating the formation of an early uptrend after a significant bullish reversal.

Company Profile: Fu Yu Corporation manufactures and sells precision plastic injection molds and plastic components, as well as plastic and aluminum parts, electronic products, and equipment for medical use.

Technical Analysis Highlights:

• Fu Yu has decisively broken above its major downtrend line, signaling a technical reversal.
• An early uptrend channel has formed immediately after breaching the downtrend.
• Ichimoku indicator is flashing a strong bullish signal.
• MACD and its signal line are rising toward the zero line, with a positive histogram.
• Stochastic Oscillator is steadily climbing after an oversold crossover.
• The 23-period Rate of Change (ROC) remains positive.
• The Directional Movement Index points to sustained bullish strength.
• Trading volume has spiked in anticipation of a breakout.

These technical signals collectively suggest that Fu Yu Corp is poised for further upside, with clearly defined entry, support, resistance, and target levels for investors considering a position.

Comprehensive Disclosures and Analyst Certification

CGS International provides detailed disclosures regarding potential conflicts of interest, proprietary positions, and regulatory compliance across all jurisdictions in which it operates. As of July 23, 2025, the firm holds no proprietary positions in the companies covered in this report, and neither the analysts nor their associates have any interests in these securities as of July 29, 2025.

The analyst responsible for this report certifies that the views expressed reflect independent professional judgment and are not influenced by compensation related to specific investment banking transactions or recommendations.

Stock and Sector Rating Framework

CGS International employs a transparent rating system for stocks, sectors, and countries:

• Stock Ratings:
  • Add: Expected total return exceeds 10% over 12 months.
  • Hold: Expected total return between 0% and 10%.
  • Reduce: Expected total return falls below 0%.
• Sector Ratings:
  • Overweight: Positive absolute recommendation on a market cap-weighted basis.
  • Neutral: Neutral absolute recommendation on a market cap-weighted basis.
  • Underweight: Negative absolute recommendation on a market cap-weighted basis.
• Country Ratings:
  • Overweight: Above-market portfolio allocation recommended.
  • Neutral: Neutral portfolio allocation recommended.
  • Underweight: Below-market portfolio allocation recommended.

Distribution of stock ratings and investment banking clients as of quarter ended June 30, 2025, for 561 companies under coverage.

Conclusion: Navigating a Critical Week for Markets and Key Singapore Stocks

As global markets confront a week rich with potential catalysts, Singapore investors should closely monitor both macro developments and specific equity plays. Singapore Airlines presents a timely profit-taking opportunity ahead of its ex-dividend date, while Fu Yu Corp emerges as a compelling technical buy with a well-defined uptrend. Investors are encouraged to stay vigilant, employ disciplined entry and exit levels, and remain informed on both global events and local stock drivers.