Broker: OCBC Investment Research
Date of Report: 13 August 2025

Global Equities Surge on Rate Cut Hopes and Strong Corporate Earnings: In-Depth Analysis of Market Movers and Singapore Stock Leaders

Market Overview: Equities Rally Worldwide Amid Fed Rate Cut Optimism

Global financial markets surged to fresh highs, driven by optimism over a potential Federal Reserve rate cut, robust earnings momentum, and easing global trade tensions. A benign U.S. inflation report reinforced expectations of a rate reduction, leading to a decline in shorter-dated Treasury yields while longer-term yields edged higher. The S&P 500 and Nasdaq Composite hit new record closes with gains of 1.13% and 1.39% respectively, while the Dow Jones Industrial Average jumped by 483.52 points (1.10%). Bank stocks outperformed, buoyed by a steepening yield curve supporting lending margins.

• Richmond Fed President Tom Barkin noted diminishing economic uncertainty, though debate remains on prioritizing inflation control versus job market support.
• Kansas City Fed President Jeff Schmid favors holding rates steady to prevent inflation risks from strong economic activity.

European and Asian Markets

• The Stoxx Europe 600 Index rose 0.2%, led by industrial goods and energy stocks, while the tech sector dipped amid AI disruption concerns.
• Asian equities advanced as trade worries eased following President Trump’s extension of a tariff truce on Chinese goods. Japanese shares reached record highs, and chip stocks rallied on signals that Nvidia may be allowed to sell modified AI chips to China, though gains were trimmed after China advised local firms to avoid certain Nvidia products.

Singapore Market Snapshot

Trading volumes and turnover saw robust increases, with 1,358.2 million shares traded (up 9.0%) and turnover at S\$1,541.7 million (up 13.2%). The 52-week range for the Straits Times Index was 3,242.0 to 4,274.3, with 280 gainers and 237 losers on the day.

Global Indices and Commodities Snapshot

Bumitama Agri Ltd (BAL SP): Surpassing Expectations with Robust Growth

Stellar 1H25 Performance and Upgraded Outlook

• 1H25 revenue soared 28% year-on-year to IDR9.7 trillion, with PATMI up 48% to IDR1.3 trillion, both surpassing initial full-year forecasts.
• CPO revenue climbed 21% YoY to IDR8.3 trillion, driven by a 22% increase in average selling prices (IDR14,500/kg), offsetting a 1% drop in sales volume.
• PK (Palm Kernel) revenue surged 103% YoY to IDR1.4 trillion, supported by 92% higher ASP and a 5% increase in sales volume.
• EBITDA grew 42% YoY to IDR2.5 billion, with a 2.6 ppt margin expansion. PATMI accounted for 61.4% of the initial annual forecast.
• Interim dividend of 3.63 Singapore cents per share proposed—over triple the prior year’s interim payout—representing a 4.3% annualized yield based on the recent closing price.

Operational Highlights and Forward Outlook

• Fresh Fruit Bunches (FFB) processed in 1H25 rose 16% YoY to 2.7 million tons, led by a 33% surge in external supply and a 7% increase in internal volumes.
• FFB yield improved 8% YoY to 9.2 tons/ha; CPO and PK production volumes grew 17% and 15% YoY, respectively.
• Oil extraction rates rose 0.2 ppt YoY to 22.4%.
• Management expects continued production momentum into 2H25, with palm oil prices trading sideways but remaining competitive versus soybean oil amid strong global and Indonesian domestic demand.
• Revised fair value estimate raised from SGD0.975 to SGD1.05; BUY rating reiterated.

ESG Commitment and Sustainability Progress

• GHG emissions intensity reduced 18% vs. 2016 baseline, on track for 30% reduction by 2030.
• Methane capture facility installed at one mill, with three more planned; trials for composting and biocharcoal underway.
• Full RSPO certification timeline extended to 2027; fire incidents within concessions fell from 151 to 89 year-on-year.
• Social Forestry schemes and 43 Bumitama Schools established, serving over 4,000 students; zero cases of legal non-compliance in 2023.

Other Key Singapore Equity Reports and Ratings

Singapore Blue-Chip Leaders: STI Stocks by Market Cap

Conclusion

Singapore and global markets continue to offer compelling investment opportunities in 2025, underpinned by robust corporate earnings, promising macroeconomic signals, and proactive ESG initiatives. Investors are encouraged to monitor evolving market conditions, central bank policies, and individual company fundamentals to position portfolios for continued growth and resilience.