CGS International April 30, 2025
Singapore Market Insights: Pan-United Uptrend Signals Buy Opportunity, FCT Shows Resilience
Market Overnight Recap: Wall Street Navigates Growth Concerns and Trade Tensions
Wall Street traders are exhibiting cautious optimism, driving a stock rebound despite underlying economic concerns. Investors appear willing to bet that Corporate America can withstand slowing economic growth and the ongoing disruptions caused by tariffs.
Market sentiment pushed the S&P 500 towards its most significant six-day gain since March 2022, rising 7.5% during that period, even as weak consumer confidence and labor data surfaced. Earlier pressure on equities came as some major companies withdrew earnings guidance due to uncertainties stemming from President Donald Trump’s trade policies and threats to potentially dismiss the Federal Reserve Chair.
Despite the tariff turmoil showing no signs of abating and the economic toll increasing, a segment of stock bulls is fueling the equity comeback. Several factors contribute to this:
- Fear of Missing Out (FOMO): Investors are wary of missing the initial phase of a potential market bounce, recalling historical US market rebounds.
- Federal Reserve Rate Cut Bets: Growing expectations that the Federal Reserve will cut interest rates to stave off a recession are building a case for risk-on investments.
- Shift to Short-Dated Treasuries: Investors continue to prefer short-dated Treasuries, bracing for a further slowdown in US economic activity.
However, challenges remain. The US economy, after a period of comfortable cruising last year, showed signs of losing momentum at the beginning of 2025. Factors such as consumer fatigue and a ballooning trade deficit suggest a significant hit to economic performance in the first quarter.
Singapore Stock Focus: Frasers Centrepoint Trust & Pan-United Corp
Frasers Centrepoint Trust (FCT): Healthy Operating Metrics Underpin Stability
Frasers Centrepoint Trust (FCT) reported results indicating solid operational performance.
- DPU In Line: The 1HFY25 Distribution Per Unit (DPU) of 6.054 Singapore cents aligns with forecasts, representing 50.1% of the full-year FY9/25F estimate.
- Strong Operations: FCT maintained a high portfolio occupancy rate of 99.5% during 1HFY25.
- Positive Rental Reversion: The trust achieved a rental reversion rate of +9% in the same period.
- Rating and Target Price: The ‘Add’ rating is maintained, with a slightly increased DDM-based Target Price (TP) of S\$2.70.
Pan-United Corp Ltd (Pan-United): Technical Buy – Uptrend Intact with Strong Momentum
Pan-United Corporation Ltd presents a compelling technical picture suggesting its current uptrend is likely to persist.
Company Overview: Pan-United Corporation is described by Bloomberg as an Asian multinational corporation specializing in concrete solutions and technologies. The company focuses on developing high-performance, sustainable concrete products and related building materials. It is a key supplier of ready-mixed concrete and cement within Singapore.
Technical Snapshot & Analysis: The price action for Pan-United shows strong positive signals, supporting a continuation of the uptrend initiated around February 2024. Key technical indicators reinforce this bullish outlook:
- Established Uptrend: The stock has been trending steadily upwards since February 2024.
- Resistance Breakout: A strong bullish close above the S\$0.655 level, previously a key resistance point now turned support, signals the confirmation of a new uptrend phase.
- Ichimoku Cloud: The Ichimoku indicator signals a strong bullish uptrend is in place.
- Stochastic Oscillator: This momentum indicator remains elevated, suggesting that bullish momentum is still relatively strong.
- Rate of Change (ROC): The 23-period ROC has broken above the zero line, indicating positive price acceleration.
- Directional Movement Index (DMI): The DMI confirms the prevailing bullish strength in the stock.
- Volume: Trading volume remains in a healthy expansion phase, supporting the price trend.
Trading Parameters:
- Last Price: 0.680
- Entry Price(s): 0.680, 0.640, 0.590
- Support 1: 0.655
- Support 2: 0.570
- Stop Loss: 0.560
- Resistance 1: 0.715
- Resistance 2: 0.570 (*Note: This appears identical to Support 2 in the source data*)
- Target price 1: 0.720
- Target price 2: 0.800
- Target price 3: 1.00
- Target price 4: 1.10
Analyst: CHUA Wei Ren, CMT (T (65) 6210 8612 | E weiren.chua@cgsi.com)
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As of April 28, 2025, CGS International did not have a proprietary position in the securities covered in this report. As of April 30, 2025, the analyst(s) and their associate(s) did not have an interest in the securities covered or recommended in this report.
