Broker: CGS International
Date of Report: July 30, 2025

Singapore Market Outlook: Bullish Signals for Riverstone Holdings, Singapore Airlines Faces Near-Term Headwinds

Market Recap and Macro Trends

The global equity markets kicked off a pivotal week with Wall Street indices touching all-time highs and the US dollar recording its strongest gain since May. Optimism was fueled by a new tariff deal between the US and the European Union, raising hopes for a continued trade truce with China. Meanwhile, oil prices climbed as the US signaled a shortened timeline for a Russia-Ukraine truce. The upcoming week is expected to be one of the busiest of the year, with the Federal Reserve widely anticipated to hold interest rates steady, and several big-tech giants—collectively representing \$11.3 trillion in market capitalization—set to release earnings.

Key economic events to watch include the US jobs report, inflation data, and details of upcoming Treasury note and bond sales. With ongoing trade negotiations between the US, China, and Canada, investor sentiment remains highly sensitive to political developments and macroeconomic indicators.

Singapore Airlines: Time to Take Profit Amidst Mixed Performance

Singapore Airlines (SIA) recently reported its 1QFY3/26 results, revealing a performance that fell below expectations primarily due to a significant share of Air India’s losses. However, the core Singapore business continued to perform solidly.

• The final dividend per share (DPS) of 30 Singapore cents is set to go ex-date on August 8, 2025.
• The report recommends investors consider taking profit ahead of the dividend ex-date, as the share price has risen significantly in anticipation.
• Singapore Airlines’ rating was downgraded from Hold to Reduce, reflecting concerns about near-term downside risk after strong recent performance.
• The target price was revised slightly downward to S\$6.80, based on an end-CY25F P/BV multiple of 1.3x, which is two standard deviations above the mean since 2011.

Investors are advised to remain cautious, considering the underperformance attributed to Air India and the run-up in the share price leading to the dividend ex-date.

Technical Spotlight: Riverstone Holdings Ltd Poised for Bullish Reversal

Riverstone Holdings Ltd, a leading manufacturer and distributor of clean-room products, including nitrile and natural rubber gloves, packaging materials, and specialized apparel, is displaying strong technical signals of an impending bullish reversal.

Technical Analysis Highlights:

• Riverstone’s price action is breaking out from a larger descending channel, with a clear breakout above a falling wedge, signaling a reversal.
• An inverted head and shoulders pattern has formed and confirmed with a strong move above S\$0.72, turning prior resistance into support.
• Ichimoku indicators show an early bullish signal, while MACD lines have crossed over at the bottom with a positive histogram.
• The stochastic oscillator has confirmed an oversold crossover, and the 23-period Rate of Change (ROC) is positive.
• The directional movement index points to steady bullish strength, supported by a spike in trading volume signaling breakout anticipation.

Company Overview: Riverstone Holdings specializes in products for highly controlled clean-room environments, with a diverse portfolio including gloves, packaging, face masks, and apparel for critical industries.

Analyst Contact: CHUA Wei Ren, CMT | [email protected]

Broker Disclosure and Sector Rating Framework

CGS International provides a comprehensive disclosure about its research methodology and sector rating definitions. The report includes a detailed explanation of its stock rating system:

• 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.

Sector and country ratings follow a similar approach, with Overweight, Neutral, and Underweight recommendations based on market capitalization-weighted performance and benchmark positioning.

As of June 30, 2025, CGS International covers 561 companies, providing a broad perspective for investors.

Conclusion: Spotlight on Tactical Opportunities

The current market environment is marked by heightened volatility and momentous global developments. Investors should closely watch Singapore Airlines for potential profit-taking opportunities ahead of the dividend ex-date, while Riverstone Holdings offers an attractive technical setup with multiple bullish indicators suggesting a potential reversal and significant upside. With detailed ratings and robust disclosure practices, CGS International equips market participants with the insights needed to navigate rapidly evolving market conditions.