Broker Name: CGS International
Date of Report: June 10, 2025

Singapore Trendspotter: Key Equity and Banking Insights for Investors (June 2025)

Global Market Update: US-China Tensions Ease, Eyes on Rare Earths and Tech

Trade relations between the US and China are in the spotlight once again as both sides prepare to resume negotiations in London. This renewed engagement follows a recent phone conversation between Donald Trump and Xi Jinping, signaling a potential thaw after a turbulent year of escalating tariffs and restrictions. Previously, a deal in Geneva had temporarily lowered tariffs, but progress stalled due to mutual accusations of non-compliance.

Key overnight developments include:

• China has approved rare-earth export applications, though specific recipients were not disclosed.
• The US aims to restore the flow of critical rare earths and magnets, vital for cell phones, electric vehicles, and defense systems.
• US officials, including the Treasury and Commerce Secretaries, are set to meet with China’s Vice Premier He Lifeng. Notably, the inclusion of the US Commerce Secretary, responsible for advanced technology export curbs, suggests the US might reconsider some restrictions affecting China’s tech ambitions.
• Major sticking points remain, such as US restrictions on Chinese AI chips and software, and China’s retaliatory curbs on rare-earth shipments.

Singapore Banking Sector: Loan and Deposit Growth Trends

The Singapore banking sector continues to show resilience, though growth rates have moderated:

• Banking system loan growth eased to +3.4% year-on-year in April 2025, reflecting a more cautious lending environment.
• Despite robust deposit growth, the Current Account Savings Account (CASA) ratio is expected to improve as interest rates decline, leading to lower funding costs in Q2 2025.
• Analysts reiterate a Neutral stance on Singapore banks, with DBS as the preferred sector pick.

Bumitama Agri Ltd: Technical Analysis Points to Bullish Rebound

Bumitama Agri Ltd, a leading Indonesian palm oil producer, is back on the radar for technical investors. Despite being previously stopped out at S\$0.74, the stock has staged a significant rebound, marking the end of its corrective wave and signaling renewed bullish momentum.

Bumitama Agri Ltd: Company Snapshot

Bumitama Agri Ltd is involved in cultivating and harvesting oil palm trees, processing fresh fruit bunches (FFB) into crude palm oil (CPO) and palm kernel (PK), and selling these products primarily in Indonesia.

Technical Buy Recommendation: Entry and Price Targets

Key Technical Observations

• Strong rebound at the 123.6% Fibonacci expansion of corrective wave A to B, indicating the end of the corrective structure.
• Two out of three bullish crossovers on the Ichimoku indicator, supporting the positive outlook.
• Stochastic Oscillator is nearing an oversold bullish crossover, suggesting potential upward momentum.
• The 23-period Rate of Change (ROC) has rebounded and remains positive, bolstering bullish sentiment.
• Directional Movement Index (DMI) confirms the strength of the current bullish trend.
• Volume patterns show healthy expansion, supporting the sustainability of the rebound.

Stock Ratings and Sector Outlook

CGS International employs a clear ratings framework for stocks and sectors:

• Add: Total return expected to exceed 10% over the next 12 months.
• Hold: Total return expected between 0% and +10% over the next 12 months.
• Reduce: Total return expected to fall below 0% over the next 12 months.

Sector and country ratings are similarly categorized as Overweight, Neutral, or Underweight, guiding investors on relative positioning.

Distribution of stock ratings and investment banking clients as of March 31, 2025, with 551 companies under coverage.

Investment Disclaimers and Regulatory Notes

This report includes comprehensive disclaimers and jurisdictional notes for global clients, highlighting the importance of compliance with local regulations and the necessity for individualized investment advice. The report also discloses that neither the broker nor its analysts have any proprietary positions or personal interests in the companies analyzed as of the report date.

Conclusion: Market Opportunities Amid Uncertainty

With global trade negotiations in flux and sector-specific trends emerging, investors are urged to pay close attention to technical signals and macroeconomic developments. Bumitama Agri Ltd’s technical rebound presents a noteworthy opportunity, while Singapore banks remain a stable, albeit neutral, sector pick. As always, investors should carefully assess their own objectives and consult professional advisers before making allocation decisions in these dynamic markets.