Market Overview and Macro Commentary
The current market environment remains challenging amid a series of global economic setbacks. U.S. consumer confidence plunged to its lowest since August 2021 as worries surrounding economic growth outweighed inflationary concerns. Key market indices experienced notable fluctuations – the Nasdaq 100 slid by around 5% over four consecutive days, and mega-cap stocks fell more than 10%, triggering correction definitions. The digital asset arena also came under pressure with a 6% decline in Bitcoin, leading to setbacks in crypto-focused exchange-traded funds. Meanwhile, subdued Treasury yields have spurred money market pricing, with expectations of two quarter-point Federal Reserve rate cuts this year.
BRC Asia Ltd – Technical Buy and Steady Uptrend
BRC Asia Limited, a company that designs, manufactures, and markets steel mesh under the BRC brand, is experiencing a sustained bullish trend. The stock has maintained a consistent uptrend channel since November 2023 and has successfully broken out of a pennant formation. Technical indicators such as the Ichimoku indicators, MACD, Stochastic Oscillator, 23-period Rate Of Change (ROC), and the directional movement index underscore the positive momentum. Healthy volume expansion further validates this trend.
- Current Price: 3.08 SGD
- Entry Prices: 3.08, 2.90, 2.78
- Stop Loss: 2.67
- Support Levels: 2.81 and 2.65
- Resistance Levels: 3.09 and 3.70
- Target Prices: 3.20, 3.70, 4.10, and 5.20
The analysis highlights multiple bullish signals including prices trending above all key Ichimoku indicators, a positive MACD histogram with rising signal lines, and a robust short-term bullish divergence. These technical factors support the recommendation to add to the technical buy position in BRC Asia Ltd.
Huadian Power International Corp Ltd – Technical Buy
Huadian Power International Corp Ltd stands out as a technical buy based on sound price action and well-calibrated entry points. The stock’s trading framework supports multiple entry opportunities with clearly defined target levels and a disciplined stop loss, making it appealing for technical traders.
- Entry Prices: 4.23, 4.00, 3.60
- Stop Loss: 3.38
- Target Prices: 4.70, 5.40, 6.30, and 7.80
Link REIT – Technical Buy
Link REIT is also recommended as a technical buy. Its current price levels offer multiple attractive entry points, and the structured risk management through a specified stop loss makes it a compelling buy for investors seeking steady growth along with technical confirmations.
- Entry Prices: 35.40, 33.60, 30.20
- Stop Loss: 29.50
- Target Prices: 40.80, 44.80, 50.40, and 57.00
Akeso Inc – Technical Buy
Akeso Inc is positioned as a technical buy with multiple entry levels and well-articulated targets that cater to varying risk appetites. The entry strategy combined with a predefined stop loss further enhances risk management for investors.
- Entry Prices: 71.40, 61.70, 53.20
- Stop Loss: 49.50
- Target Prices: 90.80, 104.80, 115.40, and 137.00
Aztech Global Ltd – Order Book Recovery Slower Than Expected
Aztech Global Ltd has exhibited slower-than-anticipated recovery in its order book. The company reported FY24 revenue figures that trailed consensus expectations by 9%/8%, although net profits aligned with expectations partly driven by lower taxes in the fourth quarter of FY24. The dividend summary revealed a final dividend per share (DPS) of 3.0 cents in line with forecasts, alongside a surprisingly higher special dividend of 7.0 cents. With an interim DPS of 5.0 cents, the overall FY24 DPS culminated at 15.0 cents.
Due to the subdued order recovery, revenue forecasts for FY25-26F have been lowered significantly. As a result, the call has been revised from an Add to a Hold, signaling caution while monitoring the company’s progression.
Credit Bureau Asia Ltd – Demand Sustained Across Segments
Credit Bureau Asia Ltd is noted for maintaining robust demand across its various segments. Although detailed technical metrics are not elaborated upon, the emphasis on sustained demand indicates stability in its business operations.
CP All – Strong 4Q24 Earnings Beat
CP All has delivered a strong performance in its fourth-quarter earnings, surpassing analyst expectations. This strong beat in earnings reinforces the underlying fundamentals and positions the company favorably amid an evolving market landscape.
Trip.com – More Aggressive Global Expansion on the Cards
Trip.com is poised for a transformative phase with plans for more aggressive global expansion. This forward-looking strategy hints at a significant evolution in its market presence, propelling the company into a future of enhanced geographical and operational reach.
Conclusion
In summary, the comprehensive analysis conducted in this Trendspotter report spans a range of companies across several regions. With BRC Asia Ltd, Huadian Power International Corp Ltd, Link REIT, and Akeso Inc all recommended as technical buys, investors have clear entry strategies and profit targets to consider. In contrast, Aztech Global Ltd sees a revision to a Hold recommendation in response to order recovery concerns. Additionally, Credit Bureau Asia Ltd, CP All, and Trip.com are highlighted for their stable demand, strong earnings performance, and strategic global expansion respectively. Investors are encouraged to consider the detailed technical parameters and fundamental commentary provided in this report when making their investment decisions.
