Comprehensive Analysis of Listed Companies – Trendspotter Report

Broker: CGS International Securities Singapore Pte. Ltd.

Date of Report: February 19, 2025

Overview of Market Conditions

As of February 19, 2025, a significant rally among chipmakers has propelled stock markets to all-time highs. Recent discussions between the US and Russia have ignited hopes for an end to the ongoing conflict in Ukraine, further boosting investor sentiment. The S&P 500 index has surpassed its previous January record, although equity markets remain uncertain due to various macroeconomic factors such as tariffs, inflation, and geopolitical instability.

Market analysts, including Matt Maley from Miller Tabak + Co., emphasize that only a significant breakout above the S&P 500’s recent highs would signal a robust upward trend. Notably, the Nasdaq 100 and Dow Jones Industrial Average have shown mixed performances, while chipmaker indices gained 1.7%. In this environment of volatility, investment strategies focused on capital preservation are being recommended.

Company Analysis

1. Aztech Global Ltd (SIN)

Recommendation: Technical Buy

Last Price: 0.745

Aztech Global Ltd has recently exhibited a bullish breakout from its bottom range, marking a significant reversal in its price action. Following a drastic sell-off in November of the previous year, the stock has spent three months consolidating, culminating in a strong bullish breakout confirmed by various technical indicators.

• Ichimoku indicators present two out of three bullish crossovers.
• The MACD has crossed above its signal line at the bottom, with the histogram now positive.
• Stochastic oscillators have confirmed an oversold crossover.
• The 23-period Rate of Change (ROC) has risen above the zero line, indicating positive momentum.
• The Directional Movement Index has regained bullish strength.
• Trading volume has spiked above the 20-period average, solidifying the breakout.

Key price levels include support at 0.725 and 0.670, with a stop loss set at 0.645. Target prices are positioned at 0.820, 0.900, 1.000, and 1.100, presenting a favorable risk-reward scenario for investors.

2. InnoCare Pharma Ltd (9969)

Recommendation: Technical Buy

Entry Prices: 7.22, 6.14, 5.38

Stop Loss: 4.80

The stock is positioned for significant upward movement, with target prices set at 8.81, 10.30, 12.60, and 15.32. InnoCare Pharma Ltd’s fundamentals and technical indicators suggest a strong potential for growth in the pharmaceutical sector.

3. Geely Automobile Holdings Ltd (175)

Recommendation: Technical Buy

Entry Prices: 17.76, 16.34, 14.00

Stop Loss: 12.80

Geely’s stock is projected to reach target prices of 20.81, 24.30, 32.60, and 39.32. The company is strategically positioned within the automotive sector, benefitting from favorable market conditions and consumer demand for vehicles.

Market Outlook and Strategy

The Singapore Budget 2025 aims to address immediate economic concerns while keeping long-term growth in focus. Increased cash handouts are expected to benefit supermarket operators such as SSG and DFI, as well as retail REITs including FCT, CICT, MPACT, and LREIT. Tax incentives aimed at boosting the local equity market could favor the Singapore Exchange (SGX), while the low carbon objectives may positively impact renewable energy plays like SCI and KEP.

Overall, the report highlights a favorable outlook for equities as investors show a willingness to embrace risk amid declining treasury yields and market fluctuations. The analysis of individual stocks reflects notable bullish momentum, particularly in the technology and automotive sectors, suggesting potential opportunities for investors to capitalize on rising market trends.