Broker: CGS International
Date of Report: July 18, 2025

Singapore Market Watch: Early Uptrend for Oxley Holdings, Food Empire’s Strategic Moves, and Robust US Retail Signals

Market Overview: Strong US Economic Signals Drive Optimism

Global equities advanced as upbeat US retail sales and declining jobless claims reinforced market confidence in economic resilience. The S&P 500 approached new highs, led by technology shares, following a positive outlook from Taiwan Semiconductor Manufacturing Co. and robust earnings from PepsiCo Inc. United Airlines Holdings Inc. also exceeded expectations, signaling potential for higher earnings as customers resumed travel after a rocky start to 2025.

• The US dollar extended gains, on track for its best month in 2025.
• Short-term US Treasury yields edged higher, while long-term yields softened, reflecting tempered expectations for Federal Reserve rate cuts—now fewer than two cuts anticipated this year, down from three earlier in July.
• Retail sales posted a broad advance, easing fears of consumer pullback, while jobless claims fell for a fifth consecutive week, reaching their lowest since mid-April.
• Analysts note that positive consumer data strengthens the economic outlook but complicates the case for imminent rate cuts.

Oxley Holdings Ltd: Technical Buy as Early Uptrend Emerges

Oxley Holdings Ltd. has entered an early uptrend phase, showing strong bullish momentum after reversing from recent lows. Investors and traders are advised to note the following technical highlights and levels:

Technical Analysis Highlights:

• Oxley has broken out of its major downtrend channel, posting a decisive break above the pennant and forming higher highs that confirm the early uptrend.
• Ichimoku indicators signal a robust bullish trend, with the stock closing above all key Ichimoku levels.
• MACD and signal lines are rising well above the zero line, with a positive histogram.
• Stochastic Oscillator continues to climb steadily, supporting momentum.
• The 23-period Rate of Change (ROC) is positive, reinforcing upward price strength.
• Directional Movement Index shows sustained bullish strength.
• Volume spikes accompany bullish price action, further validating the breakout.

Company Overview: Oxley Holdings Ltd. is a real estate developer focused on residential, commercial, and light industrial projects across accessible locations. The company is known for integrating amenities such as swimming pools and recreational facilities into its developments.

Food Empire Holdings Ltd: Strategic Partnerships and Valuation Rerating

Food Empire Holdings Ltd. (FEH) continues to justify its ongoing valuation rerating through strategic business initiatives and expansion efforts. The company has recently announced a notable partnership:

• FEH has teamed up with Santan to make its products available on AirAsia flights and at various ground touchpoints, significantly expanding its distribution network.
• This collaboration is anticipated to be the first of several initiatives stemming from FEH’s partnership with private equity firm Ikhlas Capital.
• FEH’s growth trajectory, coupled with the MAS S\$5bn EMDP, positions the company for a potential rerating to 17x FY26F P/E—three standard deviations above its nine-year average.

Broker’s Recommendation Framework

CGS International employs a structured approach to stock and sector ratings:

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

Sector and country ratings are categorized as Overweight, Neutral, or Underweight, indicating recommended portfolio exposure relative to the benchmark.

(Data for quarter ended 30 June 2025, with 561 companies under coverage.)

Important Disclosures and Jurisdictional Information

The report emphasizes that all opinions, views, and analyses are prepared independently, with strict measures to avoid conflicts of interest. Investors are responsible for considering their personal objectives, risk appetite, and financial situation before making investment decisions. The report includes jurisdiction-specific disclosures for distribution in various countries, including Australia, Canada, China, France, Germany, Hong Kong, Indonesia, Ireland, Malaysia, New Zealand, Singapore, South Korea, Spain, Sweden, Switzerland, the UAE, UK, EEA, and the United States.

Conclusion: Opportunities and Caution Ahead

Strong US economic data and sector-specific developments in Singapore present opportunities for investors, particularly in Oxley Holdings Ltd. and Food Empire Holdings Ltd. The technical and strategic outlook remains positive, but vigilance is warranted given evolving central bank policies and dynamic market conditions.