CGS International
August 15, 2025
Singapore Stocks to Watch: China Aviation Oil & CapitaLand Investment Amid Rising US Tariffs and Market Shifts
Overview: Key Market Trends and Macro Updates
The latest research from CGS International, dated August 15, 2025, provides critical insights into Singapore’s retail investment landscape. Investors are navigating a market shaped by accelerating US wholesale inflation, driven by heightened tariffs and rising import costs. The July producer price index jumped 0.9% month-over-month, marking the fastest increase in three years, while services costs spiked 1.1%. Margins for wholesalers and retailers surged 2%, especially in machinery and equipment wholesaling. Notably, goods prices, excluding food and energy, rose 0.4%. With businesses increasingly passing tariff costs to consumers, inflation is expected to rise modestly for the remainder of the year.
Following this inflation data, stock-index futures declined and Treasury yields rose. The degree of tariff pass-through to consumers will be pivotal in shaping the future path of US interest rates. While the Federal Reserve is expected to lower borrowing costs at its next meeting, robust wholesale inflation could prompt policymakers to reconsider, as price pressures may be re-emerging.
China Aviation Oil Singapore Corp Ltd (CAO): Bullish Momentum Continues
Last Price: S\$1.25
Technical Rating: Technical Buy
| Entry Price(s) |
Support Levels |
Stop Loss |
Resistance Levels |
Target Prices |
| 1.25, 1.13, 1.05 |
1.18 / 1.00 |
0.97 |
1.40 / 2.20 |
1.54 / 2.00 / 2.38 / 3.00 |
China Aviation Oil Singapore Corp supplies jet fuel to airlines operating in China and is also active in trading other oil products such as fuel oil, gas oil, crude oil, and petrochemical products. The company engages in both physical and paper swaps as well as futures trading.
Technical Analysis Highlights
- The stock has reached the third target price (TP) of S\$1.26, showcasing strong bullish momentum.
- Price action remains firmly within an uptrend channel, with a bullish flag breakout confirming the continuation of the upward trend.
- A robust candlestick closed above the 9-period ichimoku conversion line, affirming bullish sentiment.
- All five Ichimoku indicators are trending upward, reinforcing a strong bullish outlook.
- MACD signal line is rising steadily above zero, with a positive histogram, indicating sustained buying interest.
- Stochastic oscillator continues to climb, reflecting ongoing bullish momentum.
- 23-period Rate of Change (ROC) is positive.
- Directional movement index confirms strong bullish strength.
- Trading volume is expanding healthily, supportive of further price increases.
CapitaLand Investment (CLI): Fee Income Growth and Strategic Expansion
CapitaLand Investment delivered a mixed set of results for the first half of 2025, with fee income revenue ticking up but earnings per share (EPS) of 5.8 Singapore cents falling short of expectations, representing just 35.3% of the full-year forecast.
- CLI is steadfast in its ambition to reach S\$200 billion in funds under management (FUM) by 2028, focusing on thematic products, strategic partnerships, and portfolio efficiency.
- Despite the EPS miss, CLI’s management reiterates an “Add” rating with a target price of S\$4.30, highlighting confidence in the company’s long-term growth trajectory.
Investment Ratings Framework
CGS International’s ratings are structured to guide investor expectations:
- Add: Total return expected to exceed 10% over the next 12 months.
- Hold: Total return between 0% and +10% over 12 months.
- Reduce: Total return below 0% over 12 months.
Sector ratings are categorized as Overweight, Neutral, or Underweight, based on market cap-weighted recommendations. Country ratings similarly guide positioning relative to benchmarks.
CGS International Rating Distribution (as of June 30, 2025)
| Rating |
% of Coverage |
Investment Banking Clients (%) |
| Add |
70.6% |
1.1% |
| Hold |
20.5% |
0.5% |
| Reduce |
8.9% |
0.5% |
Global Distribution and Regulatory Compliance
CGS International operates across multiple jurisdictions, adhering to local regulatory requirements in Hong Kong, Indonesia, Malaysia, Singapore, South Korea, Thailand, and other markets. The firm’s research is distributed to professional, institutional, and sophisticated investors, with detailed restrictions and disclosures for each region to ensure compliance and transparency.
Analyst compensation is structured to maintain independence, and CGS International’s business activities may include market making, underwriting, and advisory services for covered companies.
Conclusion: Navigating Singapore’s Retail Investment Landscape
With the US inflationary environment and tariff shifts impacting global markets, Singapore investors should closely monitor technical signals and earnings trends. China Aviation Oil Singapore Corp Ltd stands out as a bullish technical play with strong momentum, while CapitaLand Investment maintains its strategic growth focus despite near-term earnings softness. Investors are advised to consider their individual objectives and consult professional advisers before making investment decisions.
