SingTel Ltd: A Technical Buy with Promising Momentum
Last Price: S\$3.20
SingTel Ltd is positioned for an intriguing breakout from its consolidative range, making it a standout choice for investors. The company’s price action remains bullish and supported by strong technical indicators, suggesting further upward momentum. SingTel’s resistance at S\$3.20 has been tested multiple times, which increases the likelihood of it being broken. The stock has been on a robust uptrend since October 24, 2023, and all signs indicate this could continue.
Technical Highlights:
- Prices are trending above all Ichimoku indicators.
- The MACD/signal line remains elevated above the zero line, confirming bullish sentiment.
- The Stochastic Oscillator is rising, reinforcing the bullish momentum.
- The 23-period ROC (Rate of Change) climbed above the zero line.
- Volume levels remain healthy, supporting the uptrend.
Entry Prices: S\$3.20, S\$3.04, S\$2.96
Stop Loss: S\$2.82
Support Levels: S\$3.04, S\$2.93
Resistance Levels: S\$3.20, S\$3.80
Target Prices: S\$3.45, S\$3.53, S\$3.75, S\$4.20
With its diverse range of services, including wireless telecommunication, fixed, mobile, internet, and digital solutions, SingTel serves a global audience. This makes it a resilient player in the telecommunications sector and a compelling buy for investors seeking long-term growth.
China Hongqiao Group Ltd: A Strategic Entry in Aluminum
Stock Code: 1378.HK
Entry Prices: HK\$13.16, HK\$11.22, HK\$10.90
Stop Loss: HK\$8.30
Target Prices: HK\$15.00, HK\$18.54, HK\$19.30, HK\$22.00
China Hongqiao Group Ltd is a technical buy recommendation driven by strong fundamentals in the aluminum sector. With entry points at strategic price levels, the stock provides investors with an excellent opportunity to capitalize on its upward trajectory. The targets outlined—ranging from HK\$15.00 to HK\$22.00—reflect the research team’s confidence in the stock’s potential to achieve robust returns.
Aluminum Corp of China Ltd: A Lucrative Opportunity
Stock Code: 2600.HK
Entry Prices: HK\$5.09, HK\$4.32, HK\$3.95
Stop Loss: HK\$3.90
Target Prices: HK\$5.89, HK\$7.04, HK\$8.30, HK\$10.00
Aluminum Corp of China Ltd is another top pick in the aluminum sector. Its strong fundamentals and technical indicators make it a compelling buy. With a clear roadmap of entry and stop-loss levels, the stock is poised to deliver impressive returns, with targets reaching up to HK\$10.00. This recommendation underscores the company’s resilience and growth prospects within the aluminum market.
Sector and Economic Updates
Singapore Strategy: Capital Goods Poised for Growth
The report anticipates that 80% of companies under coverage will report Q4 2024 results in line with initial forecasts, with select names expected to outperform:
- Upside Surprises Expected: SCI, STM, IFAST, DBS, FLT, KDCREIT, ST, and SIA.
- Potential Downside Risks: WIL, SGX, CDREIT, EREIT, and FEHT.
Chinese Technology Sector: Handsets in High Demand
Chinese consumers are showing a rush to purchase new smartphones, indicating strong demand in the technology sector.
Singapore Economics: Monetary Easing
The Monetary Authority of Singapore (MAS) has eased its policy, with expectations for further easing in the near term.
Thailand: Siam Cement LSP Retrofitting
Siam Cement is making significant strides in retrofitting its Long Son Petrochemicals (LSP) plant to use ethane, showcasing innovation in the sector.
Market Indices and Commodities Overview
The report provides a detailed snapshot of global indices, currencies, and commodities as of January 27, 2025:
- Indices: The Dow Jones closed at 44,424.25 (-0.3% YTD +4.4%), while the S&P 500 closed at 6,101.24 (-0.3% YTD +3.7%). Asian markets showed mixed performance, with the Hang Seng Index up 1.9% at 20,066.19 and the Shanghai Composite Index gaining 0.7% at 3,252.63.
- Commodities: Gold traded at \$2,770.59/oz (+0.6%), while Brent Crude Oil stood at \$78.50/barrel (+0.3%). Natural gas futures saw a significant uptick at \$4.03 (+2.1%), reflecting strong demand.
- Currency Movements: The US Dollar Index fell by 0.6% to 107.44, while the Singapore Dollar traded at 1.3462 (-0.1%).
Conclusion
The CGS-CIMB Retail Research report dated January 27, 2025, presents a comprehensive analysis of key market trends and stock recommendations. SingTel Ltd, China Hongqiao Group Ltd, and Aluminum Corp of China Ltd emerge as top picks, backed by strong technical and fundamental insights. With detailed entry, stop-loss, and target levels, these stocks offer promising opportunities for investors. Additionally, the report provides valuable insights into broader market trends and sector updates, making it an essential resource for informed investment decisions.
