Broker: OCBC Investment Research
Date of Report: 16 September 2025
Global Market Rally: Key Insights and Top Stock Picks for Investors

Market Overview: Strong Start Driven by Fed Rate Cut Expectations

The week began with a surge in global equities, propelled by anticipation that the Federal Reserve will resume interest rate cuts. Optimism was further fueled by robust performances in the technology sector and signs of easing tensions in US-China trade relations. The S&P 500 soared 0.47%, closing above 6,600 for the first time. Notably, Tesla jumped 3.6% after CEO Elon Musk purchased $1 billion of stock, signaling confidence as the company pivots toward robotics amidst fierce electric vehicle competition. Alphabet reached a record high, climbing 4.5% and joining the exclusive $3 trillion market cap club, driving the communication services sector up 2.33%.
The Federal Open Market Committee’s imminent two-day meeting has investors watching closely for signals of further policy easing. Lower interest rates could extend support for equities, particularly tech names driven by AI enthusiasm. While trade tensions and economic slowdown concerns have receded for now, upcoming talks between President Trump and President Xi Jinping, as well as a framework agreement to keep TikTok operational in the US, keep global trade issues in play. Europe also saw gains, with the Stoxx Europe 600 Index up 0.42%, and Asia’s MSCI Pacific Index rising 0.2%, led by tech giants Alibaba and Samsung.

Singapore Market Snapshot: Mixed Performance and Turnover Growth

Singapore’s Straits Times Index closed at 4,338.4, down 0.1%. Financials and real estate sectors saw minor declines, while REITs and real estate indices posted slight gains. Market volume surged by 19.6% to 1,711.2 million, though turnover fell by 1.7%.

Other key statistics:

• Volume: 1,711.2 million (+19.6%)
• Turnover: 1,338.4 million (-1.7%)
• 52-week range: 3,372.4 – 4,375.3
• Gainers/Losers: 320 / 239

Research Spotlight: Shanghai Pharmaceuticals Co. Ltd. (2607 HK / 601607 CH)

Driving Innovative Transition Amid Industry Headwinds
Shanghai Pharmaceuticals (SPH) delivered soft 1H25 results, with revenue growth of 1.6% YoY to CNY141.6b. Distribution (+2.2% YoY) and retail segments (+3.4% YoY) offset declines in manufacturing (-4.5% YoY). Gross profit margin contracted to 10.1% from 11.0% in 1H24, pressured by volume-based procurement (VBP) price cuts and weaker medical device turnover.
Net profit surged 51.6% YoY to CNY4.5b, driven by a one-off gain from reclassifying Hutchison Pharmaceuticals from joint venture to subsidiary. Excluding this, net profit fell 22.4% YoY to CNY2.1b. SPH’s distribution revenue outpaced Sinopharm, reflecting value-added services for innovative drugs and growth in its contract sales organization (CSO) and Cardinal Health’s China business. SPH advanced its innovative drug pipeline, with 44 clinical-stage drugs and the Hutchison Pharmaceuticals acquisition expected to accelerate transformation.
ESG Update:
SPH’s ESG rating was upgraded in August 2025, due to improved corporate governance and business ethics. Notable points include:

• Decrease in related-party transactions with the controlling shareholder (~CNY620m in FY23 to ~CNY606m in FY24)
• Introduction of a female director as of July 2025
• Strong environmental and social scores, but governance remains average
• All suppliers must have anti-corruption policies; executive-level oversight of ethical standards
• However, lacks detailed anti-corruption policies compared to leading peers

Recommendation: BUY Fair Value: HKD 17.50 (2607 HK) / CNY 24.40 (601607 CH)

Latest Analyst Reports: Company Insights and Recommendations

Singapore STI Stocks: Market Capitalisation & Key Metrics

Singapore’s largest stocks are regularly monitored for market cap, yield, and valuation. Below is a summary of the top 10 STI stocks by market capitalization, including P/E ratios, dividend yields, and analyst recommendations.

Key Takeaways for Investors

• Global equities are buoyed by expectations of Fed rate cuts and sustained tech sector momentum.
• Singapore’s market shows mixed performance with increased trading volume, while REITs and real estate indices post slight gains.
• Shanghai Pharmaceuticals emerges as a standout for its innovative transition, despite sector headwinds, and receives a BUY rating.
• Latest analyst reports offer diverse recommendations across sectors, with notable picks in healthcare, mining, engineering, and technology.
• Top Singapore STI stocks continue to offer attractive yields and stable valuations, providing solid options for diversified portfolios.
• ESG considerations are increasingly influencing ratings, with companies improving governance and business ethics practices.

Conclusion

The week’s market pulse showcases positive momentum across global indices, underpinned by central bank policies and sectoral shifts. Investors should closely monitor Fed decisions, evolving trade dynamics, and company-specific innovation strategies. With comprehensive analysis and up-to-date recommendations, the current landscape offers compelling opportunities for both long-term growth and tactical positioning.