ST Engineering and Sembcorp Industries in focus: Weekly Review with SIAS

What happened?

In this week's Weekly Market Review in partnership with Securities Investors Association Singapore (SIAS), we discuss key developments in the global equity market and also share more about ST Engineering and Sembcorp Industries.

Watch the video to learn more about what we are looking out for this week.

Weekly Market Review

1:56 - Macro Update

• STI crossed 4,000 for the first time, hitting an all-time high and ending the week up 1.2%, signalling investor confidence in Singapore.
• US markets declined - S&P 500 fell 1.5%, and Nasdaq dropped 2.6%, mainly dragged down by tech stocks.
• The decline was triggered by a 25% US automaker tariff and concerns over “Liberation Day” (April 2), when reciprocal tariffs are expected.
• US Consumer Confidence Index dropped sharply to the lowest since 2020, indicating rising economic pessimism.
• Consumer Expectations Index fell below 80, a level that often precedes a recession, increasing fears of an economic downturn.
• US PCE inflation rose to 2.8% YoY in February — higher than expected, showing sticky inflation and casting doubt on Fed rate cuts.

STI Top performers:

• DFI Retail Group
• CapitaLand Investment
• DBS Group Holdings
• ST Engineering
• SGX

STI worst performers:

• Yangzijiang Shipbuilding (Holdings) Ltd
• Venture Corporation
• Seatrium Limited
• Genting Singapore Limited
• Thai Beverage

6:43 - ST Engineering

• Share price reached a high of $6.79, with a 2.6% gain for the week.
• Held a recent Investor Day where updated 2029 targets were shared.
• 2024 revenue hit $11.3 billion, exceeding their original 2026 target ahead of schedule.
• Net profit for 2024 came in at $702 million, showing consistent growth over recent years.
• Return on equity (ROE) improved to 26.3%, up from the low 20% range in previous years.
• Revenue growth was driven by strong performance in both commercial aerospace and defence and public security segments.
• The order book rose to $28.5 billion as of December 2024, up from $27.4 billion in 2023.
• New 2029 targets include revenue of $17 billion and profit growth exceeding revenue growth by up to 5 percentage points.
• Segment revenue targets for 2029 are $6 billion from aerospace, $7.5 billion from defence, and $4.5 billion from smart city solutions.
• Total dividend for 2025 is projected at $0.18 per share, up from $0.17 in 2024.
• Dividend yield stands at approximately 3%, lower than the historical average of 4% due to the rising share price.
• P/E ratio has increased to 22x, above the historical average of 18x.

12:50  -  Sembcorp Industries Ltd

• Sembcorp Industries’ share price rose to $6.34 as of Friday.
• Net profit grew from $301 million in 2020 to $1.019 billion in 2024, reflecting a 36% CAGR.
• Revenue from renewables expanded from $3.2 billion in 2020 to $17 billion as of February 2025
• Installed renewable energy capacity reached 17GW, with a target of 25GW by 2028.
• Growth in renewable capacity is driven by expansion in China, Vietnam, and India.
• Total dividend for 2024 amounted to $0.23 per share, comprising $0.06 interim and $0.17 final.
• The current P/E ratio is around 10x, slightly above its historical average but below previous peaks.
• Strong profit growth and dividend payouts have contributed to the stock’s upward momentum.
• Sembcorp, alongside ST Engineering, was a key driver in lifting the STI above the 4,000 mark.

Related Links:

• ST Engineering share price history and share price target
• Sembcorp Industries share price history and share price target

16:!5  - Technical Analysis

Straits Times Index

• STI hit an all-time high of 4,005 last Friday but closed lower; still posted a weekly gain.
• On April 1, STI pulled back by 14 points to around 3,950.
• The previous high in February now acts as support (polarity shift from resistance to support).
• The key support levels for the STI are 3,950, representing the recent low, and 3,900, which serves as both a psychological level and aligns with the 20-day moving average
• The STI is likely to test the 3,900 support level in the near term before staging a potential rebound towards the end of the year.
• Analyst consensus projects the STI to reach 4,250–4,260 over the next 12 months, though momentum has weakened, with RSI recently peaking at 69 before retreating toward the 50 mark, suggesting a short-term slowdown before any meaningful rebound

Dow Jones Industrial Average (DJIA) 

• Dow started Monday with a sharp decline but closed in the green, showing resilience.
• Has broken below the 200-day moving average, which was briefly tested last week.
• Current level: ~42,000, still above March low of ~40,600.
• Defensive stocks (e.g., Coca-Cola) outperformed amid volatility.
• MACD shows fading momentum, but the uptrend from mid-March is still intact.
• Key support: 200-day MA at 42,146.
• Resistance: 43,133 (upper Bollinger Band and 100-day MA confluence).
• Near-term projection: Dow expected to retest 200-day MA, then possibly face resistance near 43,133.

S&P 500 Index

• Despite a negative week, Monday saw a rebound (+0.55%) after a 1% intraday drop.
• Currently about 5% below its February high.
• Firmly below the 200-day MA, which has become a new resistance level at 5,760.
• Support seen at 5,512 (lower Bollinger Band), forming a possible double bottom.
• MACD still positive but weakening; trend suggests weak uptrend momentum.
• RSI was rejected at 50, now hovering near 40 and tracking the 14-day moving average.
• Expected trading range: Between 5,500 and 5,760, with weak momentum likely to cap upside.

NASDAQ Composite Index

• Down over 10% YTD, making it the worst-performing US index so far.
• Firmly below the 200-day MA, confirming a downtrend.
• Potential support at 17,032 (July 2023 low), but likely to break lower.
• MACD shows narrowing between signal and MACD line – a bearish crossover could trigger further downside.
• RSI fell below the 14-day average and is trending lower.
• A technical rebound may only occur if RSI drops below 30 (oversold level).
• Downside target: Possible retest of 15,000 level (last seen during the yen carry trade fear in August 2023).

What to look out for this week

• Monday, 31 March: Singapore Public Holiday
• Tuesday, 1 April: Nikko AM Asia Ex-Japan REIT ETF ex-dividend
• Wednesday, 2 April : Frasers Centrepoint Trust ex-dividend
• Friday, 4 April: US non-farm payroll data 

Get the full list of stocks with upcoming dividends here. 

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