CGS International
July 16, 2025

Seatrium Ltd Soars as Uptrend Returns: Singapore Retail Research Unveils Key Stock and Sector Picks

Market Overview: Inflation, Tariffs, and Cautious Optimism

The latest research from CGS International spotlights a market grappling with mixed signals. While US inflation data remained relatively subdued for the fifth consecutive month, investor concerns linger over the delayed impact of recent tariff increases. Wall Street’s initial enthusiasm was tempered, with the S&P 500 erasing early gains despite strong performances from technology giants. Notably, Nvidia Corp. and Advanced Micro Devices Inc. surged on news of resumed chip sales to China, while financial heavyweights such as Wells Fargo & Co. and JPMorgan Chase & Co. experienced divergent results. Treasury yields climbed, especially at the long end, and the US dollar strengthened by 0.5% as traders recalibrated their expectations for Federal Reserve rate cuts—now seeing just above a 50% probability for a move in September.

Singapore REITs: Preparing for Mixed Results Amid Tariff Uncertainty

Singapore’s REIT sector enters reporting season with expectations of a mixed bag of results. Distribution per unit (DPU) growth is anticipated to remain flat year-over-year, with particular attention on updated debt cost guidance and the potential ripple effects of global tariff hikes. Despite these headwinds, CGS International maintains an Overweight stance on SREITs, highlighting CapitaLand Ascendas REIT (CLAR) and Keppel DC REIT (KDCREIT) as top sector picks.

• Sector Outlook: Mixed results expected; overall DPU seen as relatively flat yoy.
• Key Watch Points: Updated debt cost guidance and tariff impact guidance are crucial to monitor.
• Top Picks: CLAR and KDCREIT remain the broker’s recommended choices.

Seatrium Ltd (STM): Technical Buy Recommendation as Bullish Momentum Accelerates

Seatrium Ltd, a provider of engineering solutions for the offshore, marine, and energy sectors, has re-emerged as a technical favorite following a robust breakout. The company specializes in rigs and floaters, repairs and upgrades, offshore platforms, and specialized shipbuilding solutions.

Technical Analysis Snapshot

Technical Indicators and Key Observations

• Diamond Pattern Breakout: STM has broken out of a diamond pattern and a smaller consolidative range, signaling a renewed uptrend.
• Ichimoku Cloud: Bullish signals are evident, with price closing above all Ichimoku indicators, which are trending upwards.
• MACD: The MACD line is steadily rising above zero with a positive histogram, reinforcing positive momentum.
• Stochastic Oscillator: The oscillator is climbing; despite being in overbought territory, selling pressure remains weak.
• Rate of Change (ROC): The 23-period ROC is positive, confirming momentum.
• Directional Movement Index: Shows strong and steady bullish strength.
• Volume: Healthy volume expansion supports the price action.

STM nearly reached the broker’s first target price of 2.26 in its previous coverage on May 8, 2025. The prevailing technical setup now justifies additional accumulation, with multiple upside targets ranging from 2.52 to 3.10.

Methodology: Ratings and Recommendations Explained

Stock Ratings:

• Add: Expected total return exceeds 10% over the next 12 months.
• Hold: Expected total return between 0% and +10% over the next 12 months.
• Reduce: Expected total return below 0% over the next 12 months.

Total expected return = [(Target Price – Current Price)/Current Price] + Forward Net Dividend Yield. Target price horizon: 12 months.

Sector Ratings:

• Overweight: Sector has a positive absolute recommendation on a market cap-weighted basis.
• Neutral: Sector has a neutral absolute recommendation on a market cap-weighted basis.
• Underweight: Sector has a negative absolute recommendation on a market cap-weighted basis.

Country Ratings:

• Overweight: Above-market benchmark weighting recommended.
• Neutral: Neutral weight vs. benchmark recommended.
• Underweight: Below-market benchmark weighting recommended.

Stock Ratings Distribution (Quarter Ended June 30, 2025)

Coverage: 561 companies as of the quarter ended June 30, 2025.

Conclusion: Navigating a Market in Transition

As investors digest the interplay of inflation, tariffs, and shifting monetary policy expectations, technical and sector analysis becomes ever more critical. Seatrium Ltd stands out with compelling bullish momentum, while Singapore REITs offer pockets of stability amid a challenging global backdrop. With clear technical setups and a disciplined rating system, CGS International’s research provides actionable insights for investors looking to capitalize on emerging trends and sector rotations in the months ahead.