Global Market Overview
The report opens with an insightful recap of the overnight global market action. After a late-session runup in US stocks, global markets experienced significant volatility. Key highlights include:
- Brief rebounds on Wall Street with the S&P 500 rising over 1% after a two-day slide, a Nasdaq 100 advance by 1.4%, and a 1.1% jump by the Dow Jones Industrial Average.
- European bonds and equities suffered extreme moves with German bunds witnessing their largest tumble since 1990.
- The US dollar saw a 1% drop against most major currencies, while oil prices fell to a six-month low.
- Ongoing trade negotiation developments and tariff-related news – such as the delayed imposition of auto tariffs in Canada and Mexico – have also contributed to the palpable market uncertainty.
- Options trading projects a 1.3% move in the S&P 500 on the upcoming US payrolls report – a volatility level not seen since the regional bank turmoil in March 2023.
Detailed Company and Sector Analysis
ISDN Holdings Ltd (SIN) – Bullish Reversal in an Early Stage
Recommendation: Technical Buy
ISDN Holdings Ltd is witnessing a promising early-stage bullish reversal. The last traded price stands at 0.335. Technical analysts have identified a series of bullish shift signals:
- Entry Price Levels: 0.335, 0.320, and 0.300
- Support Levels: Support 1 at 0.320 and Support 2 at 0.290
- Stop Loss Level: 0.280
- Resistance Levels: Resistance 1 at 0.340 and Resistance 2 at 0.415
- Target Prices: 0.400, 0.450, 0.500, and 0.570
Technical indicators point to a robust continuation of the uptrend. ISDN’s price pattern shows an inverted head and shoulders formation and confirmation of a bullish flag breakout. Prices have stabilized above all Ichimoku indicators, while the MACD histogram remains positive with a steadily rising MACD/signal line. Additionally, the Stochastic Oscillator is on the upswing, and the 23-period Rate of Change (ROC) has closed above zero with bullish divergence noted on a short-term basis. Directional Movement Index (DMI) remains in the bullish zone notwithstanding a small dip in the DM+. A healthy volume expansion further supports the technical buy thesis.
About the Company: ISDN Holdings Limited operates as an engineering firm specializing in the design, production, and sale of motion control, industrial computing, and other related engineering services for a global clientele. Analyst CHUA Wei Ren, CMT, emphasizes the strong technical indicators behind the bullish reversal.
Tencent Holdings Ltd (HKG: 700)
Recommendation: Technical Buy
Tencent Holdings Ltd continues to attract technical interest. The following details outline the trade setup:
- Entry Price Levels: 503.50, 478.70, and 440.00
- Stop Loss Level: 416.00
- Target Price Levels: 560.80, 620.80, 680.60, and 705.00
The technical buy recommendation underscores the expectation that Tencent will continue its upward momentum based on the current price action and supporting technical levels.
Chow Tai Fook Jewellery Group Ltd (HKG: 1929)
Recommendation: Technical Buy
Chow Tai Fook Jewellery Group is viewed as a compelling technical buy. The technical setup is clearly defined:
- Entry Price Levels: 8.86, 8.16, and 7.36
- Stop Loss Level: 6.36
- Target Price Levels: 10.60, 12.80, 13.60, and 17.00
The recommendation is backed by robust technical indicators which suggest a strong upside potential from the current level.
China National Building Material Co Ltd (HKG: 3323)
Recommendation: Technical Buy
China National Building Material Co Ltd is positioned as a technical buy based upon its price structure and defined trading levels:
- Entry Price Levels: 4.30, 4.03, and 3.60
- Stop Loss Level: 3.21
- Target Price Levels: 5.45, 7.10, 8.62, and 10.30
The technical setup further reinforces a bullish stance as the stock is anticipated to experience significant upward movement.
China Household Appliances Sector – Strong Domestic Rebound
The household appliances segment in China is experiencing a robust recovery in domestic sales, particularly in the white goods subsegment. According to China All View Cloud (AVC), retail sales on February 25 in both offline and online channels rebounded strongly.
Analysts project a 15% year-on-year increase in domestic home appliance sales for 2025, buoyed by the central government’s issuance of an Rmb300bn consumer trade-in bond. Furthermore, news of another potential US tariff hike on Chinese products is expected to drive overseas production capacity expansion by leading white goods producers. The sector’s attractive valuations prompt a reiterated Overweight recommendation, with sector top picks being Midea and Haier.
Additional Company Mentions
The report also highlights several noteworthy updates across different regions:
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Indorama Ventures (THB): The company has revealed ambitious targets for 2027F, outlining a forward-looking strategy.
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Sunway Construction Group Bhd (MAL): With a significant RM1.5bn RTS TOD win, the company is poised for earnings continuity through to FY26F, underscoring its robust construction portfolio.
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Consumer Staples (IND): Ongoing challenges remain as noted in the overall West Java visit, indicating areas that require further strategic attention.
These additional bullet points provide investors with a broader view of market dynamics and company-specific opportunities spanning the broad spectrum of consumer, construction, and industrial sectors.
Conclusion
The Trendspotter report from March 6, 2025, offers a comprehensive technical and fundamental breakdown of several key companies and sectors across Singapore, Hong Kong, and China. With a mix of robust technical buy recommendations – particularly for ISDN Holdings Ltd, Tencent Holdings Ltd, Chow Tai Fook Jewellery Group Ltd, and China National Building Material Co Ltd – investors are provided with defined entry, stop loss, and multi-target setups. In addition, the noticeable rebound in China’s household appliances sector, together with forward-looking news on Indorama Ventures and Sunway Construction Group Bhd, underscores a dynamic investment landscape, rich with potential across multiple market segments.
