ST Engineering, CICT 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 the gains in global stock markets in the first half of 2024 and also share more about the following:

• ST Engineering
• CapitaLand Integrated Commercial Trust (CICT)

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

Weekly Market Review

1:53 - Macro Update

• The S&P 500 showed little change, down 0.1%, due to a lack of major economic data or earnings releases. 
• The STI rose 0.8% last week, nearing its year-to-date high.
• In the first half of the year, the S&P 500 increased by over 14%, led by tech stocks, with the NASDAQ up 18%. The Dow Jones also rose by 3.8%.
• The rally in US stocks is driven by a resilient economy, strong retail sales, a robust job market, a boom in AI, and hopes for potential rate cuts as inflation eases.
• Market expectations indicate a high probability of rate cuts in September and December 2024, totalling 0.5% (50 basis points).

5:08 - Singapore market updates

STI Top performers:

• ST Engineering share price
• Singtel share price
• UOB share price
• CapitaLand Integrated Commercial Trust share price
• SIA share price

STI Worst performers:

• Thai Beverage share price
• Jardine Matheson share price
• Sembcorp Industries share price
• Jardine Cycle & Carriage share price
• Seatrium share price

ST Engineering share price and analysis

• ST Engineering exceeded its 52-week high, breaking out of its previous range of $3.60 to $4, and closed at $4.33 last Friday.
• ST Engineering announced a $120 million data centre in Singapore, increasing its total capacity to over 30 MW from four data centres.
• In the first quarter, the company’s revenue increased by 18% year-over-year, driven by commercial aerospace and defence and public security segments.
• ST Engineering’s order book grew from $19.3 billion in 2021 to $27.4 billion in 2023, reaching $27.7 billion by March 31, 2024, with most contracts from defence and public security.

Related links:

• ST Engineering share price
• ST Engineering dividend history and forecast

CapitaLand Integrated Commercial Trust (CICT) share price and analysis

• CICT’s share price has held up relatively well year-to-date, despite higher interest rates affecting other REITs.
• CICT's resilience is driven by its diversified assets and a focus on Singapore, which protect against sub-sector declines and mitigate FX risk and regional currency depreciation impacts
• CICT currently offers a dividend yield of about 5.6%, above the historical average of 5.3%.
• The price-to-book ratio is approximately 0.9 times, in line with the historical average and below the 1 times level.

Related links:

• CapitaLand Integrated Commercial Trust (CICT) share price
• CapitaLand Integrated Commercial Trust (CICT) dividend history and forecast 

Latest stock market technical analysis

STI Technical Analysis

• STI likely to range between 3,300 and 3,355 points.
• There is a key resistance at 3,355 points, with support around 3,291 points aligned with the 50-day moving average.
• MACD indicates flat momentum, while RSI shows mild positive momentum below breakout levels.

Dow Jones Technical Analysis

• There is a key resistance at 40,000 points; support at 100-day moving average (38,528 points).
• MACD shows mild positive momentum but recent weakening.
• Expected range is between 38,500 to 39,500 points until new data emerges.

S&P 500 Technical Analysis

• Near year-to-date high of 5,523 points, currently around 5,460 points.
• There's support at 20-day moving average (around 5,310 points) and 50-day moving average.
• MACD suggests potential downturn, RSI at 65 points indicating reduced overbought conditions.

NASDAQ Composite Technical Analysis

• There's support at 20-day moving average (around 17,457 points).
• MACD shows potential for direction change with recent negative readings.
• RSI stabilising after overbought conditions, currently around 65 points.
• Expected range is between 17,000 to 18,000 points, with support near 50-day moving average (16,970 points).

What to look out for this week

• Monday, 1 July: Singapore Savings Bonds (SSB) application opening date
• Thursday, 4 July: Singapore 6-month T-bill auction, US FOMC meeting minutes 
• Friday, 5 July: US nonfarm payroll data

Get the full list of Singapore stocks, REITs and ETFs with upcoming dividend payments with our dividend calendar.

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