CGS International
July 29, 2025

Singapore Market Trendspotter: Duty Free International Rallies, Singapore Airlines Faces Downgrade Amid Trade and Earnings Frenzy

Market Recap: All Eyes on Trade Truces, Dollar Surge, and Tech Earnings

The week commenced with global markets at a fever pitch, as Wall Street equities hovered near all-time highs and the US dollar saw its steepest climb since May. Investor sentiment was buoyed by a fresh tariff deal between US President Donald Trump and the European Union, fueling optimism for an extended China trade truce. The S&P 500 briefly topped 6,400, closing little changed, while the euro posted its sharpest slide in over two months. US Treasury yields remained mostly steady, reflecting mixed results from recent debt sales.

Major market-moving events are stacked throughout the week, including an anticipated Federal Reserve decision to keep rates steady, a slew of crucial US economic data releases, and blockbuster earnings from four tech megacaps with a combined market cap of \$11.3 trillion. The outcome of ongoing US-China trade talks, as well as significant US government borrowing announcements, are set to dominate the attention of institutional investors.

Singapore Airlines: Take Profit Before Ex-Dividend Date as Downgrade Looms

Ticker: SIN: Singapore Airlines

• 1QFY3/26 Results: Singapore Airlines’ first quarter underperformed expectations, primarily due to a significant share of Air India’s losses. However, the core Singapore business continued to perform well.
• Action: The recommendation is downgraded from Hold to Reduce, reflecting the strong share price run-up ahead of the final dividend per share (DPS) ex-date on August 8, 2025.
• Dividend: 30 Singapore cents final DPS, ex-date August 8, 2025.
• Target Price: Lowered slightly to S\$6.80, based on a target end-CY25F P/BV multiple of 1.3x, which is +2 standard deviations from the mean since 2011.

Investors are advised to consider taking profits before the dividend ex-date, as the share price has rallied strongly and the outlook is tempered by overseas unit losses.

Duty Free International Ltd: Technical Breakout Signals Potential Upside

Ticker: Duty Free International Ltd
Last Price: S\$0.080

Duty Free International Ltd, operator of a chain of duty-free shops catering to international travelers, has captured technical analysts’ attention following a decisive breakout from its recent consolidative range. Signs point toward renewed bullish momentum and further upside potential.

Technical Snapshot and Trading Strategy

Key Technical Indicators

• Consolidative Range Broken: The stock has broken above its downtrend line and consolidative range, paving the way for continued upside.
• Bullish Ichimoku Signal: The Ichimoku indicator flashes a strong bullish signal.
• MACD Strength: Both the MACD signal and line are rising towards the zero line, with a positive histogram.
• Stochastic Oscillator: The oscillator has risen steadily following an oversold crossover.
• ROC and DMI: The 23-period Rate of Change is positive, and the Directional Movement Index shows sustained bullish strength.
• Volume Spike: A notable increase in volume has accompanied the breakout, confirming market interest.

Duty Free International Ltd appears poised for a potential uptrend, with technical signals aligning in favor of bullish market participants. Investors and traders should monitor key support and resistance levels, as well as the stop loss, in line with risk management best practices.

Brokerage Recommendation Framework

Sector and country ratings follow a similar structure, guiding investors to overweight, neutral, or underweight stances based on market cap-weighted or benchmark-relative views.

Distribution of Ratings as of June 30, 2025

A total of 561 companies were under coverage for the quarter ended June 30, 2025.

Disclaimers and Regulatory Information

This report is provided strictly for informational purposes and is intended for clients of CGS International and its affiliated entities. The information, opinions, and recommendations contained herein are based on sources believed to be reliable at the time of publication. However, no guarantee is made regarding their accuracy or completeness. Investors should perform their own due diligence, considering individual objectives and risk profiles, and consult professional advisors before investing.

CGS International and affiliates may hold positions in the securities mentioned and may provide or seek to provide investment banking or other services to covered companies. Regulatory and distribution restrictions apply by jurisdiction, and recipients should ensure compliance with all applicable laws and regulations.

Summary

• Duty Free International Ltd demonstrates bullish technical momentum, with well-defined entry, stop, and target levels, providing a clear roadmap for traders and investors.
• Singapore Airlines faces headwinds from overseas unit losses, prompting a downgrade to Reduce, with a call to take profits before the 8 August ex-dividend date.
• Broader market sentiment is shaped by high-stakes trade negotiations, a strong dollar, and a packed earnings calendar, setting the stage for heightened volatility and opportunity in the weeks ahead.