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

Union Gas Holdings Set for Bullish Reversal as Singapore Airlines Faces Profit-Taking Ahead of Dividend: CGS International’s Comprehensive Market Outlook

Market Recap: Global Equities Hover at Highs Amid Tariff Talks and Economic Data Deluge

Global financial markets started the week on a strong note, with Wall Street indices remaining at record levels. The US dollar surged to its highest since May, driven by optimism over a new tariff agreement between President Donald Trump and the European Union, which buoyed expectations for an extended China trade truce. The S&P 500 briefly crossed the 6,400 mark before closing largely flat, while Treasuries saw marginal movement following mixed US debt sale results.

Oil prices gained as President Trump indicated a shortened timeline for a truce between Russia and Ukraine. With the August 1 US tariff deadline approaching, investors are bracing for a packed week featuring critical jobs, inflation, and economic activity data. The centerpiece is the upcoming Federal Reserve meeting, where rates are widely expected to remain unchanged, alongside major tech earnings from four mega-cap companies valued at over \$11.3 trillion.

In parallel, US and Chinese officials concluded the first of two days of discussions aimed at extending their tariff truce and reinforcing economic ties while maintaining security. Meanwhile, Canada remains deep in trade negotiations with the Trump administration, and the US Treasury increased its federal borrowing estimate for the quarter to \$1 trillion, primarily due to debt limit-related distortions.

Singapore Airlines: Profit-Taking Recommended Ahead of Dividend Ex-Date

Stock: Singapore Airlines (SIN)

• Q1 FY3/26 results missed expectations, largely due to significant losses from Air India, despite robust performance in the Singapore segment.
• CGS International downgrades its rating from “Hold” to “Reduce,” following strong share price gains in anticipation of the 30 Scts final dividend per share, ex-date August 8, 2025.
• Target price is revised slightly lower to S\$6.80, using a target end-CY25F P/BV multiple of 1.3x, representing +2 standard deviations from the mean since 2011.

Investors are advised to consider profit-taking before the dividend ex-date, given the recent rally and near-term downside risk post-dividend.

Union Gas Holdings Ltd: Technical Buy Call as Bullish Reversal Signals Emerge

Stock: Union Gas Holdings Ltd
Last Price: S\$0.410

Company Overview

Union Gas Holdings Limited is a Singapore-based holding company that, through its subsidiaries, supplies liquefied petroleum gas (LPG), compressed natural gas (CNG), natural gas, and diesel.

Technical Analysis Snapshot

Union Gas is showing promising signs of a bullish reversal, with upward momentum likely to accelerate once the critical resistance level at S\$0.440 is breached. The technical indicators highlight a strong case for further upside:

• The stock has decisively broken above its downtrend line, indicating a shift in momentum.
• A potential larger double-bottom pattern is forming, often seen as a reversal signal.
• Ichimoku cloud analysis delivers a strong bullish signal.
• MACD signal and MACD line are trending above the zero line, with a positive histogram.
• The stochastic oscillator is continuing its upward trajectory.
• The 23-period Rate of Change (ROC) indicator remains positive.
• The directional movement index is reflecting sustained bullish strength.
• Trading volume is spiking, suggesting heightened anticipation of a breakout above resistance.

Trading Strategy

• Entry Price: S\$0.410, S\$0.340
• Supports: S\$0.360, S\$0.270
• Stop Loss: S\$0.280
• Resistances: S\$0.440, S\$0.710
• Target Prices: S\$0.560, S\$0.630, S\$0.720, S\$0.980

Technical momentum suggests that a confirmed break above S\$0.440 could lead to a significant rally, with multiple upside targets in play for investors.

Regulatory and Disclosure Information

CGS International provides extensive regulatory disclosures and compliance statements for each jurisdiction where the report is distributed. The research is prepared based on information deemed reliable at the time of publication, but no guarantee is made regarding completeness or accuracy. CGS International and its affiliates may hold positions or conduct business in the securities mentioned, and conflicts of interest may exist. The report is intended for professional, institutional, and sophisticated investors and is not tailored to specific investment objectives or financial situations.

Stock Ratings and Recommendations Framework

Total expected return includes the percentage difference between the target and current price, plus forward net dividend yields, with a 12-month investment horizon.

Sector and Country Ratings

• Overweight: Positive absolute recommendation versus benchmark.
• Neutral: Neutral absolute recommendation versus benchmark.
• Underweight: Negative absolute recommendation versus benchmark.

Distribution of Ratings (as of June 30, 2025)

Out of 561 companies under coverage for the quarter ended June 30, 2025, the majority receive an “Add” recommendation, reflecting positive expectations for the market.

Conclusion: Tactical Moves in a Dynamic Market

The current market environment is fraught with macroeconomic catalysts, from trade negotiations to central bank policy meetings. For Singapore-based investors, Union Gas Holdings stands out as an early-stage bullish reversal candidate with multiple technical and momentum signals supporting further upside. Conversely, Singapore Airlines is positioned for near-term profit-taking ahead of its dividend ex-date, with downside risks following a robust share price run-up.

Investors should carefully assess their positions in light of these recommendations, considering their own risk tolerance, investment objectives, and the evolving global economic landscape.