Broker: OCBC Investment Research
Date of Report: 12 September 2025
Global Markets Rally as Rate Cut Hopes Drive Equities to Record Highs: In-Depth Analysis of Leading Stocks and Market Trends

Market Overview: Inflation Eases, Rate Cut Expectations Fuel Global Equity Surge

Equities worldwide soared to new heights as signs of cooling inflation and a softening labor market raised expectations of imminent rate cuts by central banks. The United States led the charge, with all three major indices closing at record levels for the second time this week. The Dow Jones Industrial Average broke the 46,000 mark for the first time, gaining 1.36% (617 points), boosted by strong performances in financials, materials, and healthcare. The S&P 500 and Nasdaq also posted robust gains, with Tesla’s 6% surge helping push technology benchmarks higher. Meanwhile, the Russell 2000 jumped 1.8%, marking its highest level this year, and Microsoft and Adobe saw post-market gains after major partnership and earnings announcements.

Bond markets rallied, briefly sending the 10-year Treasury yield below 4% for the first time since April. On the commodities front, gold dipped, while oil prices declined. In Europe, the Stoxx Europe 600 rose 0.55%, led by construction and retail, as the European Central Bank held rates steady amid economic resilience. Across Asia, optimism in China and TSMC fueled gains, with the CSI 300 index surging 2.31% on expectations of government support and technology advancement.

Singapore Market Snapshot: Steady Momentum Amid Global Upturn

The Straits Times Index climbed to 4,355.8, up 0.2%, while the FTSE ST REITs and Real Estate sectors outperformed. Trading volume and turnover were lower, but market breadth remained positive with 313 gainers versus 222 losers.

Trading Stats: Volume: 1,466.2m (-3.3%), Turnover: 1,292.9m (-21.9%), 52-week range: 3,372.4 – 4,367.5, Gainers/Losers: 313/222

Global Index Performance and FX/Commodities Movements

FX & Commodities: USDSGD: 1.2815 (+0.1%), USDJPY: 147.21 (+0.2%), USDCNY: 7.119 (0.0%), USDHKD: 7.789 (0.0%) WTI Crude: \$62.37/bbl (-2.0%), Brent: \$66.37/bbl (-1.7%), Gold: \$3,634.1/oz (-0.2%), Silver: \$41.56/oz (+0.9%)

Nanofilm Technologies International Ltd: Re-examining Assumptions and ESG Progress

Share Price Momentum and Market Sentiment Nanofilm Technologies International Ltd (NANO SP) continues its positive trajectory, up 8.6% since the last update on 14 August and trading at year-to-date highs. The counter benefits from incrementally positive global equity sentiment and ongoing Singapore market reforms, including pre-emptive positioning ahead of the Equity Market Development Program (EQDP). While demand outlook remains uncertain, it is less negative than previously expected, with management sounding optimistic about maintaining growth across business units for the rest of 2025.

Fundamental Analysis and Valuation Adjustment – Near-term earnings recovery is expected to be gradual. – Less pronounced seasonality due to earlier project ramp-up. – Operational efficiencies may improve gross profit margins. – Target FY26 price-to-earnings (P/E) multiple increased from 20.6x to 23.0x, a quarter standard deviation above historical average since listing (Oct 2020). – Revised fair value estimate: SGD0.79 (up from SGD0.72). – Rating: HOLD, as sentiment-driven rally outpaces fundamentals.

ESG Initiatives and Areas for Improvement Nanofilm has invested heavily in solutions for the hydrogen economy, enhancing its low carbon transition strategy. The company has improved data collection for coatings operations, aiming to reduce greenhouse gas intensity by 40% and wastewater discharge intensity by 80% by 2030. In FY23, Nanofilm surpassed its target to source at least 50% of energy from renewables or carbon credits. It now screens 100% of critical direct suppliers for human rights, environmental, and health criteria.

However, staff training averages have declined (14 hours per employee in FY24 vs. 31 in FY22 and 21 in FY23), falling short of the 2030 target of 40 hours annually. Board and senior management diversity also remains a concern, with 80% male composition in FY24.

Latest Research Ideas: Key Company Reports

This table highlights the breadth of coverage, including recent reports on China Tower Corporation, Hong Leong Asia Ltd, Singapore Post, CITIC Securities, SATS Ltd, Jiangxi Copper Co, China Aviation Oil, Golden Agri-Resources, ComfortDelGro, UOL Group Ltd, and more.

STI Stocks by Market Capitalisation: Key Metrics and Recommendations

A comprehensive review of the top 30 STI stocks reveals strong dividend yields and healthy P/E ratios across Singapore’s largest listed companies. Banks like DBS, OCBC, and UOB dominate with robust yields and steady earnings multiples, while real estate, logistics, and technology counters also feature prominently.

Conclusion: Opportunities and Risks in a Buoyant Market

With global equities surging, investors are presented with attractive opportunities across sectors. However, sentiment-driven rallies warrant cautious optimism and disciplined portfolio management. The continued focus on ESG initiatives, operational efficiency, and strategic reforms positions select companies for sustainable growth, but detailed due diligence remains essential for navigating volatility and capturing long-term value.

Important Disclosures and Ratings Guide

• OCBC Investment Research’s technical comments and recommendations are short-term and trading-oriented.
• Fundamental views and ratings (Buy, Hold, Sell) are medium-term calls within a 12-month horizon.
• BUY: Expected returns (excluding dividends) >10% (or >30% for companies <S\$150m).
• HOLD: Expected returns (excluding dividends) between +10% and -5% (or +/-30%).
• SELL: Expected returns (excluding dividends) <-5% (or <-30%).
• Suitability of investment products should be evaluated with professional advice.