Keppel DC REIT: Asia’s Pure-Play Data Centre REIT

Keppel DC REIT, a trailblazer as Asia’s first pure-play data centre REIT, continues to show promising signs of growth. Listed on the Singapore Exchange, the company is primarily focused on acquiring and managing income-producing real estate assets used for data centres. Analysts have shifted their stance to a technical buy position for this stock, citing strong bullish momentum.

Technical Analysis Highlights

• The stock has broken out of a pennant formation, a bullish continuation indicator.
• It has been on a strong uptrend since April 19, 2024.
• Prices are trading above all Ichimoku indicators, further solidifying its upward trajectory.
• The MACD/signal line is elevated above the zero line, indicating strong momentum.
• The Stochastic Oscillator is rising, confirming bullish activity.
• The 23-period ROC (Rate of Change) is above the zero line.
• Volume metrics remain healthy, showing consistent interest in the stock.

Key Recommendations

• Entry Prices: 2.27, 2.18
• Support Levels: 2.20, 2.00
• Stop Loss: 2.04
• Resistance Levels: 2.40, 3.00
• Target Prices: 2.51, 2.83, 3.05, 3.20

China Hongqiao Group Ltd: A Technical Buy Opportunity

China Hongqiao Group Ltd, a key player in the aluminum sector, presents itself as a robust technical buy for investors. The company has displayed strong resilience in recent market conditions, with analysts expecting significant upward movement in its stock price.

Investment Insights

• Entry Prices: 13.16, 11.22, 10.90
• Stop Loss: 8.30
• Target Prices: 15.00, 18.54, 19.30, 22.00

The positive outlook is driven by a combination of solid technical indicators and a favorable market environment for aluminum products.

Aluminum Corp of China Ltd: Positioned for Growth

Aluminum Corp of China Ltd, another titan in the aluminum industry, has also been flagged as a technical buy. With strong fundamentals and technical indicators pointing toward a bullish trajectory, this stock is poised for significant growth.

Investment Insights

• Entry Prices: 5.09, 4.32, 3.95
• Stop Loss: 3.90
• Target Prices: 5.89, 7.04, 8.30, 10.00

Investors are encouraged to monitor this stock closely as it navigates a favorable market environment bolstered by strong technical formations.

Singapore Strategy: Capital Goods Sector Set to Shine

Analysts expect approximately 80% of companies under coverage to report fourth-quarter 2024 results in line with initial forecasts. However, certain companies are poised to outperform expectations, making them attractive investment options.

Potential Upside Performers

• Sembcorp Industries (SCI)
• STMicroelectronics (STM)
• iFAST Corporation Ltd (iFAST)
• DBS Group Holdings (DBS)
• Frasers Logistics & Commercial Trust (FLT)
• Keppel DC REIT (KDCREIT)
• Sats Ltd (ST)
• Singapore Airlines (SIA)

Potential Downside Risks

• Wilmar International Ltd (WIL)
• Singapore Exchange (SGX)
• CDL Hospitality Trusts (CDREIT)
• ESR-REIT (EREIT)
• Far East Hospitality Trust (FEHT)

Macroeconomic Trends and Other Updates

The Monetary Authority of Singapore (MAS) has eased its monetary policy, with expectations for further easing. This policy adjustment could provide additional tailwinds for companies operating in Singapore’s market. Additionally, Chinese consumers are exhibiting robust demand for new smartphones, providing a boost to the technology sector.