Broker: CGS International
Date of Report: September 3, 2025
Singapore Market Rally: Gold Surges to New Heights, Hong Leong Asia and SingTel Shine on Bullish Momentum
Global Market Overview: Gold’s Record-Breaking Run and Investor Sentiment
The precious metals market is experiencing a dramatic upswing, with gold prices soaring to record highs. Gold for immediate delivery surged as much as 0.9% on Tuesday, peaking at $3,508 an ounce and surpassing its previous high achieved in April. This remarkable rise, with gold appreciating over 30% year-to-date, has cemented its status as one of the top-performing major commodities in 2025.
This bullish streak is predominantly driven by:
Expectations of imminent US Federal Reserve rate cuts, as suggested by Fed Chair Jerome Powell.
A weakening US labor market, with an upcoming jobs report likely to reinforce the case for monetary easing.
Persistent macroeconomic uncertainties and geopolitical tensions, including concerns about the Fed’s independence.
Key analyst insights highlight that investors are increasingly allocating to gold, viewing it as a critical portfolio diversifier amid softer economic data and elevated risks. Silver, too, has more than doubled over the past three years, reflecting robust demand for safe-haven assets during uncertain times.
Singtel: Stronger Outlook Prompts Upgrade and Raises Target Price
Singtel has captured investor attention with a significant outlook upgrade. The stock’s rating has been elevated from “Hold” to “Add,” accompanied by a revised RNAV-derived target price of S$4.80 following the company’s Investor Day 2025. Several factors underpin this positive reassessment:
Extension of Singtel’s VRD (Variable Remuneration Distribution) program.
Improved performance from Bharti Airtel, a major associate.
Progress in Optus and regional data centre businesses.
Despite trading at above 1 standard deviation of its P/E range, Singtel offers compelling re-rating catalysts, including potential Bharti Airtel share sales, increased VRD payments, and positive earnings surprises.
| Company |
Previous Rating |
New Rating |
Target Price |
Key Catalysts |
| Singtel |
Hold |
Add |
S\$4.80 |
VRD extension, Bharti performance, Optus & regional data centres |
Hong Leong Asia Ltd: Bullish Trend Reinforced, Technicals Remain Robust
Hong Leong Asia Ltd, the trade and industry arm of Singapore’s Hong Leong Group, stands out for its sustained bullish momentum. The company’s core businesses span diesel engines, building materials, rigid plastic packaging, air-conditioning systems, hospitality, and property development.
The latest technical analysis reveals:
The stock is firmly entrenched in both its primary and secondary uptrends.
A bullish continuation is anticipated following a positive pin bar rebound off the 9-period Ichimoku conversion line.
Ichimoku indicators show robust bullish signals.
The MACD (Moving Average Convergence Divergence) line and signal are both trending above zero, with a positive histogram.
While the Stochastic Oscillator indicates overbought conditions, any correction has been minimal.
The 23-period Rate of Change (ROC) is positive.
The Directional Movement Index (DMI) confirms steady bullish strength.
Trading volume remains healthy and continues to expand.
Hong Leong Asia has already achieved its second target price of S$2.62 (from the previous technical buy call in early January 2025), netting a 172% gain to date. The technical outlook suggests further upside potential with multiple price targets.
| Metric |
Value |
| Last Price |
S\$2.47 |
| Entry Prices |
S\$2.47, S\$2.06 |
| Support 1 / 2 |
S\$2.00 / S\$1.60 |
| Stop Loss |
S\$1.67 |
| Resistance 1 / 2 |
S\$2.60 / S\$3.60 |
| Target Price 1 |
S\$2.80 |
| Target Price 2 |
S\$3.22 |
| Target Price 3 |
S\$4.00 |
| Target Price 4 |
S\$4.80 |
| Analyst |
CHUA Wei Ren, CMT |
Technical Highlights for Hong Leong Asia
- Strong price action and bullish technicals signal higher trending ahead.
- The stock has achieved a 172% gain since the January 2025 call.
- Indicators across Ichimoku, MACD, Stochastic, ROC, and DMI all support continued bullishness.
- Volume trends remain robust, supporting price action.
Broker Rating Framework: How Recommendations Are Defined
Investor clarity is paramount, and the rating system used for securities in this report is clearly structured:
| Stock Rating |
Definition |
| Add |
Total return expected to exceed 10% over the next 12 months |
| Hold |
Total return expected between 0% and 10% over 12 months |
| Reduce |
Total return expected to fall below 0% over 12 months |
Sector and country ratings are similarly structured to guide portfolio positioning. For instance, “Overweight” suggests a positive stance relative to benchmarks, while “Underweight” signals caution.
Distribution of Ratings and Investment Banking Clients
| Rating |
% of Companies |
% Investment Banking Clients |
| Add |
70.6% |
1.1% |
| Hold |
20.5% |
0.5% |
| Reduce |
8.9% |
0.5% |
Data as of June 30, 2025, covering 561 companies.
Conclusion: Navigating Opportunities Amid Market Volatility
Singapore’s equity landscape is witnessing dynamic changes, with gold’s surge underscoring risk aversion and a hunt for safe havens. Singtel’s strategic improvements and Hong Leong Asia’s robust technicals present actionable opportunities for investors. The clarity of the rating framework and the comprehensive approach to coverage ensure market watchers and investors are equipped to make informed decisions in this ever-evolving environment.
