OCBC Investment Research Private Limited
Date of Report: 29 August 2025

Global Markets Rally on AI Momentum and Robust Economic Data: In-Depth Equity Analysis and Top Singapore Stocks to Watch

Market Overview: New Highs Driven by AI and Economic Resilience

Global equities surged to fresh record levels, powered by optimism surrounding artificial intelligence (AI), strong economic indicators, and resilient consumer spending. The United States led the charge, buoyed by stellar data and AI-sector enthusiasm, while European and Asian markets presented a more nuanced picture with sector rotations and geopolitical headwinds.

United States: Record Highs Amid AI Euphoria and Economic Momentum

• Major indices closed at record levels: S&P 500 up 0.32%, Nasdaq Composite up 0.53%, and Dow Jones Industrial Average gaining 0.16%.
• Growth, risk, and momentum strategies outperformed, while dividend and low-volatility stocks lagged.
• Nvidia’s quarterly revenue soared by 56%, confirming robust demand for AI-related technologies. Despite a dip in Nvidia’s own share price, AI-linked stocks broadly rallied.
• US GDP grew at an annualized rate of 3.3% in Q2, led by business investment and a significant boost from trade, easing recession fears.
• Investor focus now turns to the Fed’s preferred inflation gauge – the Personal Consumption Expenditures (PCE) index – due to be released imminently.

Europe: Sector Rotation Sparks Mixed Sentiment

• The Stoxx Europe 600 Index dipped 0.2% as investors rotated into value stocks, particularly benefitting some of the year’s worst-performing sectors.
• Automakers outperformed following data showing the strongest rise in the European new-car market in 15 months.
• LVMH led gains in consumer products, reflecting optimism over sustained demand.

Asia: AI Optimism Offsets Trade Headwinds

• The MSCI Asia Pacific Index was little changed, with a rally in Chinese stocks balancing out losses in India after the US imposed a 50% tariff on Indian goods.
• Chinese chip shares surged on reports of plans to triple AI processor output in 2026, helping the CSI 300 Index rebound.
• Hong Kong-listed e-commerce giants Meituan and Alibaba slumped after Meituan projected major losses due to a sector-wide price war.

Singapore Market: Steady Gains Amid Lower Volumes

• Trading volume fell by 9% to 1,212.4 million shares, and turnover was down 15.1% at SGD 1,157.2 million.
• The 52-week trading range for the Straits Times Index was 3,372.4 to 4,282.8.
• Gainers numbered 236, outpaced by 279 losers.

Global Market Snapshots: Key Indices and Commodities

Broker Research Highlights: Recent Analyst Reports

In-Depth Company Analysis: Singapore’s Top 30 by Market Capitalisation

Company Spotlights: Key Singapore Equities

DBS Group Holdings Ltd (DBS SP)

• Price: SGD 50.33 | Market Cap: USD 111,337m | Dividend Yield (F1): 6.0% | P/E (F1): 13x
• Strong consensus on the stock with 13 BUY, 10 HOLD, and no SELL recommendations.

Oversea-Chinese Banking Corp Ltd (OCBC SP)

• Price: SGD 16.75 | Market Cap: USD 58,664m | Dividend Yield (F1): 5.8% | P/E (F1): 11x
• Analyst consensus: 10 BUY, 3 HOLD, 1 SELL.

Singapore Telecommunications Ltd (ST SP)

• Price: SGD 4.31 | Market Cap: USD 55,485m | Dividend Yield (F1): 4.2% | P/E (F1): 24x
• Analyst consensus: 15 BUY, 2 HOLD, 1 SELL.

United Overseas Bank Ltd (UOB SP)

• Price: SGD 35.30 | Market Cap: USD 45,663m | Dividend Yield (F1): 5.9% | P/E (F1): 10x
• Analyst consensus: 10 BUY, 6 HOLD, 1 SELL.

Singapore Technologies Engineering Ltd (STE SP)

• Price: SGD 7.66 | Market Cap: USD 18,625m | Dividend Yield (F1): 2.4% | P/E (F1): 27x
• Analyst consensus: 4 BUY, 10 HOLD, 2 SELL.

Other Notable Singapore Stocks

• Wilmar International Ltd (WIL SP): Price SGD 2.95, Market Cap USD 14,357m, Dividend Yield (F1) 5.0%, P/E (F1) 11x, Recommendations: 5 BUY, 7 HOLD, 2 SELL.
• Sembcorp Industries Ltd (SCI SP): Price SGD 6.03, Market Cap USD 8,361m, Dividend Yield (F1) 4.1%, P/E (F1) 10x, Recommendations: 9 BUY, 4 HOLD.
• Genting Singapore Ltd (GENS SP): Price SGD 0.73, Market Cap USD 6,831m, Dividend Yield (F1) 5.7%, P/E (F1) 16x, Recommendations: 9 BUY, 8 HOLD, 1 SELL.
• CapitaLand Investment Ltd (CLI SP): Price SGD 2.74, Market Cap USD 10,654m, Dividend Yield (F1) 4.5%, P/E (F1) 20x, Recommendations: 15 BUY.
• Keppel Ltd (KEP SP): Price SGD 8.48, Market Cap USD 11,942m, Dividend Yield (F1) 4.0%, P/E (F1) 18x, Recommendations: 11 BUY, 1 HOLD, 1 SELL.
• Mapletree Logistics Trust (MLT SP): Price SGD 1.21, Market Cap USD 4,805m, Dividend Yield (F1) 6.0%, P/E (F1) 21x, Recommendations: 7 BUY, 8 HOLD.
• Frasers Centrepoint Trust (FCT SP): Price SGD 2.32, Market Cap USD 3,670m, Dividend Yield (F1) 5.2%, P/E (F1) 21x, Recommendations: 13 BUY, 3 HOLD.

Recent Analyst Reports: Key Calls and Sector Insights

• China Tower Corporation (788 HK): Buy, HKD 14.50, focus on enhancing shareholder returns.
• Hong Leong Asia Ltd (HLA SP): Buy, SGD 3.10, positioned for constructing cities of the future.
• Singapore Post (SPOST SP): Hold, SGD 0.495, navigating a transition period.
• CITIC Securities (6030 HK / 600030 CN): Hold/Buy, HKD 31.15 / CNY 42.40, benefiting from robust capital market activity.
• SATS Ltd (SATS SP): Buy, SGD 3.73, expected to soldier on through near-term challenges.
• Jiangxi Copper Co Ltd (358 HK / 600362 CH): Buy, HKD 25.90 / CNY 31.00, smelting could benefit from anti-involution strategies.
• China Aviation Oil (CAO SP): Buy, SGD 1.50, strong outlook on aviation fuel demand.
• Golden Agri-Resources (GGR SP): Hold, SGD 0.27, momentum may weaken in 2H25.
• ST Engineering Ltd (STE SP): Hold, SGD 8.90, maintaining strong order book momentum.
• ComfortDelGro Corporation (CD SP): Buy, SGD 1.75, a smooth ride ahead.
• Nanofilm Technologies International Ltd (NANO SP): Hold, SGD 0.72, returning to profitability.
• UOL Group Ltd (UOL SP): Buy, SGD 8.65, disciplined approach to growth.
• Wilmar International (WIL SP): Buy, SGD 3.54, China operations provide support despite mixed 2H25 outlook.
• CapitaLand Investment Ltd (CLI SP): Buy, SGD 3.69, continuing to sow seeds for growth.
• Stoneweg Europe Stapled Trust (SERT SP): Buy, EUR 1.82, early signs of recovery.
• City Developments Ltd (CIT SP): Hold, SGD 6.87, anticipating higher dividends in FY25.
• Bumitama Agri Ltd (BAL SP): Buy, SGD 1.05, expects a bountiful harvest.
• Sembcorp Industries (SCI SP): Buy, SGD 8.02, renewables strength offset by GRS weakness.
• Genting Singapore (GENS SP): Buy, SGD 0.96, not quite at target yet.
• Singapore Exchange Ltd (SGX SP): Hold, SGD 16.15, robust results and steady dividend growth.

Conclusion: Investor Focus Remains on Economic Data, AI, and Earnings Momentum

The global equity rally is firmly underpinned by accelerating AI investment, strong economic growth in the US, and sectoral shifts in Europe and Asia. Singapore’s market remains supported by financials, REITs, and consumer-linked stocks, with analysts highlighting several names for growth, momentum, and yield. Investor attention is set to remain sharply tuned to inflation data, Fed policy, and the evolving tech landscape, with selective stock picking key to navigating this dynamic environment.

Disclosures and Analyst Recommendations

• OCBC Investment Research ratings are medium-term (12 months), with BUY indicating >10% total expected return (excluding dividends), HOLD within +10%/-5%, and SELL below -5%. For REITs and business trusts, total returns including dividends apply.
• For companies below S\$150m market cap, BUY is >30% expected return (excluding dividends), HOLD within +/-30%, and SELL below -30%.