OCBC Investment Research Private Limited
Date of Report: 17 September 2025

Global Markets Slide as Fed Decision Looms; Copper and Renewable Power Stocks Shine in Asia

Market Overview: Global Indices Retreat Ahead of Fed Rate Cut

Global markets took a cautious turn as investors braced for a major interest-rate decision by the US Federal Reserve. Wall Street’s rally paused, with the Dow Jones Industrial Average falling 0.27%, S&P 500 down 0.13%, and the Nasdaq Composite slipping 0.07% to end a nine-day winning streak—its longest since November 2023. Oracle and Tesla bucked the trend with gains, the former on news of its role in a TikTok consortium and the latter despite a federal probe into door defects.

Positive US retail sales data (up 0.6% in August, 0.7% ex-autos) failed to offset investor caution, as Treasury yields spiked then retreated. The two-year note dipped to 3.51%, and the 10-year yield fell to 4.03%. With major indices at record highs, the anticipated Fed rate cut could trigger a “buy the rumour, sell the news” reaction, stoking fears of a potential bubble—particularly with non-tech S&P 500 stocks up 13% while profits rose only 6.4%.

European stocks fell sharply ahead of the Fed decision and renewed US tariff threats on imported auto parts. The Stoxx Europe 600 Index dropped 1.14%, with insurers and financials lagging, while mining and carmakers outperformed. Asian equities hit new intra-day records, led by a chip-sector rally after Beijing’s anti-monopoly ruling on Nvidia, sparking optimism for China’s homegrown semiconductor firms.

Singapore Market Pulse: Flat Trading Amid Global Volatility

The Straits Times Index ended nearly flat at 4,337.7 (-0.7 points), while financials and real estate equities posted modest declines. REITs dropped 0.6%. Market volume fell 13.8% to 1,475.8 million shares, but turnover rose 4% to \$1,391.8 million. The gainers-to-losers ratio stood at 259/276.

Research Highlights: Top Stock Picks and Sector Insights

Jiangxi Copper Co Ltd: Riding the Wave of Favourable Commodity Prices

• Ticker: 358 HK / 600362 CH
• Rating: BUY
• Fair Value: HKD 40.00 / CNY 44.10

Jiangxi Copper has been a standout performer in 2025, with its H share price surging ~106% year-to-date, handily outpacing the MSCI China Index’s ~35% rise. The rally has been driven by robust commodity prices, particularly copper and gold, and stellar first-half results. Jiangxi Copper’s net profit for 1H25 reached CNY4.2 billion (+15% YoY), beating expectations. 2Q25 net profit was CNY2.2 billion (+17% YoY, +14% QoQ), fueled by higher gold and sulfuric acid prices.

The interim dividend of CNY0.4 per share (31% payout ratio) surprised positively, especially with no payout in 1H24. Despite challenges from negative treatment and refining charges due to oversupply, smelting profits held up thanks to long-term contracts and strong sulfuric acid margins. Enhanced mined copper and gold profits are expected to support solid earnings into 2H25.

After revising estimates to reflect higher commodity prices and strong 1H25 results, Jiangxi Copper’s fair value was raised from HKD25.90 to HKD40.00 (H shares) and from CNY31.00 to CNY44.10 (A shares).

China Longyuan Power: Accelerating Renewable Expansion and Dividend Surprise

• Ticker: 916 HK / 001289 CH
• Rating: BUY
• Fair Value: HKD 10.70 / CNY 23.00

August 2025 marked strong power generation growth for China Longyuan Power, with total output rising 5.6% YoY to 5.3 million MWh. Wind and solar segments led the charge: wind generation jumped 22.4% YoY to 3.9 million MWh, and solar soared 74.4% YoY to 1.4 million MWh. Excluding coal, total power generation rose 33.0% YoY in August. For the year-to-date, cumulative generation was flat, but excluding coal it rose 15.5% YoY, with wind up 7.4% and solar up an impressive 77.0%.

The company reported 1H25 revenue of CNY15.7 billion (+3.1% YoY), but net profit declined 14.4% YoY to CNY3.5 billion due to lower tariffs (wind -4%, solar -2%), weaker utilisation, and higher costs. Power generation, however, grew 12.7% YoY. Longyuan expanded its renewable portfolio by 2GW in 1H25, hitting 40% of its annual 5GW target.

A notable milestone was the declaration of its first-ever interim dividend of CNY0.1 per share. The company received CNY250 million in renewable subsidies during 1H25, with CNY47 billion still uncollected. More subsidies are typically received in 2H. Updated fair values reflect stronger performance: HKD10.70 (H shares) and CNY23.00 (A shares).

ESG analysis highlights that 72% of Longyuan’s business is less carbon-intensive than peers. The group scores 4 out of 10 for carbon emissions performance, but a perfect 10 for greenhouse gas mitigation. While governance and human capital development lag industry averages, Longyuan excels in renewable energy opportunities and carbon emissions management.

Other Noteworthy Equity Research Coverage

A snapshot of recent ratings and fair values for major Asian stocks and sectors:

Singapore STI Stocks: Market Capitalisation, Dividends, and Valuation Multiples

The following table details the top Singapore Exchange-listed stocks by market capitalization, showing price, beta, historical and forecast dividend yields, and P/E ratios. Recommendations are summarized for each company.

Disclaimer and Ratings Methodology

All opinions, estimates, and recommendations are subject to change without notice. Ratings are classified as BUY (expected returns >10%), HOLD (+10% to -5%), and SELL (<-5%) over a 12-month horizon, with stricter benchmarks for small-cap stocks. For REITs and Business Trusts, total expected returns including dividends apply. Investors are urged to consider their personal investment objectives and consult with advisers before making decisions.

Conclusion: Cautious Optimism in Volatile Times

With the Federal Reserve’s rate decision on the horizon, global markets remain in a holding pattern. Asian resource and renewable stocks are delivering standout performances, reflecting sector-specific tailwinds. The Singapore Exchange continues to offer a mix of high dividend yields and stable blue-chip options for risk-conscious investors. As always, sharper market moves may follow pivotal policy announcements, underscoring the importance of due diligence and sectoral analysis in portfolio positioning.