CapitaLand Ascendas REIT & Nvidia 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 alongside CapitaLand Ascendas REIT .

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

Weekly Market Review

2:05 - Macro Update

•  The S&P 500 gained 1.9% to above 5,900, while the STI climbed to around 3,900, both nearing their all-time highs.
• Trade policy developments were mixed, with early optimism from delayed EU tariffs and blocked US tariffs, followed by setbacks from stalled US-China talks and doubled steel/aluminium tariffs.
• The US PCE Price Index showed inflation cooling to 0.1% in April, down from 0.5% in February, easing inflation concerns.
• US 10-year bond yields fell from 4.6% to 4.4%, which boosted market sentiment by lowering borrowing cost concerns.
• Top STI performers included ST Engineering, SATS, and REITs like Mapletree Logistics Trust and CapitaLand Ascendas REIT, while Jardine-related stocks underperformed.
• Market outlook remains focused on trade tensions, inflation trends, and interest rate expectations as key drivers of investor sentiment.

STI Top performers:

• ST Engineering
• SATS
• Yangzijiang Shipbuilding
• Mapletree Logistics Trust
• CapitaLand Ascendas REIT

STI worst performers:

• Jardine Matheson Holdings
• Singtel
• HongKong Land
• Genting Singapore
• Jardine Cycle & Carriage

5:58 - CapitaLand Ascendas REIT

• CapitaLand Ascendas REIT has entered conditional agreements to acquire two prime properties for a purchase consideration of around S$700.2 million to expand its portfolio in Singapore.
• The two properties are a Tier III colocation data centre at 9 Tai Seng Drive and a premium business space property at 5 Science Park Drive.
• There is potential to raise rental income at 9 Tai Seng Drive as leases renew, supported by a low 2% vacancy rate and limited new supply.
• Capacity expansion is possible at the data centre, which could further boost DPU growth.
• 5 Science Park Drive is also under-rented, with current rents about 15% below market levels.
• The asset has a lease term of 1.5 years left, offering scope to reprice rents upward upon renewal.
• CapitaLand Ascendas REIT is trading at around 1.16 times price-to-book, slightly above its historical average.
• Its expected dividend yield is approximately 5.7%, in line with historical levels.

Related Links:

• Capitaland Ascendas REIT share price history and share price target

13:45  - Technical Analysis

Straits Times Index

• The STI rose about 1.8% in May, a smaller gain compared to the U.S. market, but remains steady overall.
• Immediate resistance is around 3,950 (the May 13 high), with the next target being the all-time high near 4,500 if it breaks out.
• Strong support is seen between 3,847 and 3,850, where the 50-day and 100-day moving averages align with the lower Bollinger Band.
• The index is likely to remain range-bound between 3,850 and 3,950 in the near term.
• MACD shows the recent recovery may be stalling, with no clear upward or downward momentum.
• RSI has fallen from 63 to 56, nearing the neutral 50 mark, indicating weak trend momentum currently.

Dow Jones Industrial Average 

• The Dow gained nearly 4% in May, marking its strongest monthly performance since November 2023.
• It is currently capped below the 200-day moving average at 42,406 and facing resistance near the 100-day moving average.
• Key support is around 41,000, where the 50-day MA and lower Bollinger Band converge.
• Resistance levels to watch include 42,759 (March high) and 43,044 (upper Bollinger Band), suggesting a trading range of 41,000 to 43,000.
• The MACD has turned negative in recent sessions, indicating the post-tariff rally may be fading.
• With RSI at 56 and lacking momentum, the index may move sideways or slightly up, pending new catalysts from trade news or economic data.

S&P 500 

• The S&P 500 rose about 6% in May, outperforming the Dow and showing strong signs of recovery.
• The index has moved above the April 2nd tariff-related low, possibly reflecting a best-case scenario being priced in.
• Key support is around 5,600, where the 50-day moving average aligns with the lower Bollinger Band.
• Resistance levels include 6,059 (upper Bollinger Band) and the YTD high of 6,144, with 6,000 as an important psychological level.
• MACD is slightly negative, suggesting the recent recovery may have been priced in.
• RSI is at a healthy 60, indicating potential for further upside if positive trade or economic data emerges.

Nasdaq Composite Index

• The NASDAQ was the best-performing U.S. index in May, rising 9.56%, marking a strong rebound.
• It has broken above the key 200-day moving average, turning a major resistance level into potential support.
• Key support is around 17,500–17,600, where the 50-day MA and lower Bollinger Band converge.
• Resistance is near 19,826, at the upper Bollinger Band.
• MACD is neutral to slightly negative, suggesting momentum has plateaued for now.
• RSI remains strong at 62, down from an overbought reading of 70, indicating continued upward momentum compared to other indices.

NVIDIA

• NVIDIA's earnings on 28 May beat analyst expectations, prompting a 3% initial share price jump, but followed by a 3% sell-off as investors took profit.
• The chart shows a potential inverted head and shoulders pattern forming, with strong support expected around the $113 level.
• Resistance lies near the $143 level, where a double top has formed (from 18 Feb and 2 Jun highs), indicating a possible trading range.
• Despite concerns about U.S. chip restrictions impacting China sales, current results suggest limited immediate impact, offering short-term relief.
• MACD has turned negative, signaling potential short-term weakness and a pullback toward support levels at $126, $116, and $113.
• RSI has dropped from 73 to 63; a further decline to the neutral 50 level may offer a better re-entry opportunity for investors.

What to look out for this week

• Monday, 2 Jun: Singapore Savings Bond (SSB) application open
• Wednesday, 4 Jun: CapitaLand Ascendas REIT ex-dividend
• Thursday, 5 Jun: 6 month Singapore T-bill auction
• Friday, 6 Jun: US Non-farm payroll

Get the full list of stocks with upcoming dividends here. 

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