CGS International
Report Date: July 18, 2025

Singapore Stocks 2025: Technical Signals, Market Outlook, and Key Picks from CGS International

Market Recap: Economic Resilience Fuels Equity Gains

Global markets experienced a positive surge as key economic indicators signaled ongoing resilience. Notably, strong retail sales and a decline in jobless claims underpinned investor confidence, fueling a rally across major indices. The S&P 500 approached a new record, with technology stocks leading the advance, bolstered by an optimistic outlook from Taiwan Semiconductor Manufacturing Co. The US dollar continued its July ascent, poised for its best month of 2025, while short-dated Treasuries underperformed and the two-year Treasury yield edged higher.

• Money markets now expect fewer than two Fed rate cuts in 2025, down from three earlier this month.
• President Donald Trump’s comments downplaying the replacement of Fed Chair Jerome Powell helped stabilize markets after earlier volatility.
• US retail sales posted a broad-based advance, easing concerns about a slowdown in consumer spending.
• Unemployment benefit applications declined for a fifth consecutive week, reaching the lowest level since mid-April.
• United Airlines signaled a strong earnings outlook as travel bookings rebounded after a rocky start to the year.
• PepsiCo delivered solid earnings, adding to bullish sentiment.

Despite the positive economic signals, analysts caution that rising consumer goods prices temper the outlook, making the case for rate cuts less compelling.

Food Empire Holdings Ltd: Strategic Collaborations Drive Re-Rating Potential

Fresh Partnership with AirAsia’s Santan

Food Empire Holdings (FEH) recently announced a collaboration with Santan, AirAsia’s food and beverage arm, to offer its products aboard AirAsia flights and at associated ground points. This marks the beginning of what is expected to be a series of strategic initiatives, especially following FEH’s partnership with private equity firm Ikhlas Capital.

• FEH products to be available on AirAsia flights and at selected on-ground locations.
• Collaboration seen as the first of multiple new business ventures springing from the Ikhlas Capital partnership.

Valuation and Growth Outlook

Analysts believe FEH’s proactive business expansion plans, combined with the Monetary Authority of Singapore’s S\$5 billion Enterprise Development Grant (EMDP), could justify a valuation re-rating. The company’s forward price-to-earnings (P/E) ratio for FY26 is projected at 17x, which stands three standard deviations above its nine-year average — a signal of robust growth expectations.

• Potential for FEH’s valuation to reach 17x FY26F P/E (3 standard deviations above 9-year average).
• Growth supported by new partnerships and market expansion.

Acesian Partners Ltd: Technical Signals Point to Strong Bullish Reversal

Company Overview

Acesian Partners Limited is a global provider of environmental solutions and integrated services, specializing in the design, installation, testing, and commissioning of air-conditioning, mechanical ventilation, and electrical systems. The company serves industries including semiconductor, wastewater treatment, chemical, pharmaceutical, and biotechnology.

Technical Analysis: Island Bottom Reversal Identified

Acesian Partners is exhibiting a rare and powerful “island bottom reversal” pattern, signaling a potential for a sustained bullish trend. Several technical indicators reinforce the likelihood of a prolonged uptrend.

Technical Snapshot: Key Bullish Indicators

• Island Bottom Reversal: A rare and strong bullish reversal pattern. Prices have not retraced to fill the gap, underscoring strong upward momentum.
• Ichimoku Cloud: Bullish signals confirmed as the stock closed above all 26-period base lines.
• MACD: Both signal and MACD lines are crossing at the bottom, with a positive histogram.
• Stochastic Oscillator: Trending higher, supporting the bullish case.
• Rate of Change (23-period): Positive, confirming momentum.
• Directional Movement Index: Indicates steady bullish strength.
• Volume: Healthy expansion observed over the last 10 periods.

About CGS International: Coverage and Ratings Approach

Stock and Sector Ratings Framework

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

The total expected return incorporates the percentage difference between target and current price, plus forward net dividend yields. Price targets carry a 12-month investment horizon.

• Sector Ratings: Overweight, Neutral, Underweight — based on market cap-weighted recommendations.
• Country Ratings: Overweight, Neutral, Underweight — relative to benchmark positioning.

Coverage Distribution (as of June 30, 2025)

CGS International covers 561 companies as of June 30, 2025.

Investor Guidance and Disclaimers

This research is intended for information and background purposes only and does not constitute an offer or recommendation to buy or sell any securities. Investors are strongly advised to consider their own investment objectives, financial situation, and consult professional advisers before making investment decisions.