ComfortDelGro and Seatrium in focus: Weekly Review with SIAS

What happened?

In this week’s Weekly Market Review in partnership with the Securities Investors Association Singapore (SIAS), we discuss easing geopolitical tensions following a reported US-Iran agreement, elevated inflation and bond yields, and the implications for global markets. We also look at the latest developments at ComfortDelGro and Seatrium, alongside the technical outlook for the STI and major US indices.

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

Weekly Market Review

1:44 - Macro Update

• US markets posted modest gains last week, with the NASDAQ leading major indices with a 0.7% rise, supported by continued enthusiasm surrounding technology stocks and the SpaceX IPO.
• Investor sentiment improved significantly after reports that the US and Iran had reached a structured agreement, with the reopening of the Strait of Hormuz expected to ease concerns over energy supply disruptions.
• US headline inflation accelerated to 4.2% year-on-year, the highest reading in the past 12 months, highlighting the inflationary impact of the recent Middle East conflict and elevated oil prices.
• US government bond yields remained elevated, with the 10-year Treasury yield staying close to 4.5%, while Singapore government bond yields also moved higher over the week.
• Investors are no longer expecting rate cuts in the near term, with market expectations shifting towards the possibility of a rate hike in 2026 if inflation remains persistent.
• Among the stronger-performing Singapore stocks, SGX remained one of the best performers amid higher trading activity, while beaten-down REITs including CapitaLand Integrated Commercial Trust, CapitaLand Ascendas REIT and Mapletree Logistics Trust rebounded.
• On the weaker side, Seatrium fell 4.0% as oil prices moderated, while ST Engineering declined 2.9% as concerns around the Middle East conflict eased.

STI Top Performers:

• Wilmar International
• SGX
• Mapletree Logistics Trust
• CapitaLand Integrated Commercial Trust
• CapitaLand Ascendas REIT

STI Worst Performers:

• DFI Retail Group
• Venture Corporation
• Yangzijiang Shipbuilding
• ST Engineering
• Seatrium

Companies in Focus: 

ComfortDelGro (SGX: C52)

• ComfortDelGro delivered another year of growth in FY2025, with both revenue and net profit increasing year on year, supported by contributions from its overseas operations.
• International operations now account for 55% of group revenue, exceeding Singapore’s contribution for the first time and highlighting the company’s increasing overseas diversification.
• The public transport segment continued to perform well, supported by improved bus contract margins in the UK, easing driver shortages in Australia and fare increases in Singapore.
• In the taxi and private hire segment, revenue increased due to contributions from acquisitions such as Addison Lee, although competitive pressures and cautious consumer spending continued to weigh on profitability.
• ComfortDelGro increased its total FY2025 dividend to 8.5 cents per share and currently trades at around 14 times earnings, below its historical average valuation.

Read also: ComfortDelGro worth a look for income? Dividend yield rises above 6% after share price weakness

Related Links:

• ComfortDelGro (SGX:C52) latest valuation, share price and analysis
• ComfortDelGro (SGX:C52) dividend history and dividend forecast

Seatrium (SGX: 5E2)

• Seatrium has staged a strong recovery over the past two years, with FY2025 revenue increasing to S$11.5 billion from S$7.3 billion in FY2023.
• The company returned to profitability in FY2025, recording net profit of S$324 million compared to losses two years earlier.
• Earnings visibility has improved significantly, with more than S$4 billion of new order wins secured and a net order book exceeding S$17 billion, equivalent to more than 1.5 times FY2025 revenue.
• Seatrium also highlighted a potential project pipeline of approximately S$32 billion across oil and gas, offshore wind and conversion projects, providing substantial long-term growth opportunities.
• The company doubled its dividend to 3 cents per share, continued its share buyback programme, and reduced its cost of debt through refinancing efforts.

Read also: Seatrium shares lag STI despite recovery signs. What investors may want to watch

Related Links:

• Seatrium (SGX:5E2) latest valuation, share price and analysis
• Seatrium (SGX:5E2) dividend history and dividend forecast

Technical Analysis

Straits Times Index

• The STI rallied strongly on Monday morning, gaining around 65 points to reach an intraday high of approximately 5,093 as investors embraced a renewed risk-on sentiment.
• Immediate resistance remains at the all-time high around 5,150, while near-term support is around the 20-day moving average at 5,037. Stronger support is seen near 4,950.
• The RSI has risen to around 57 and moved above its average reading, indicating improving momentum and a healthy uptrend.
• With improving sentiment and strength in the banking sector, the STI appears poised to test the 5,100 to 5,150 range in the near term.

Learn more about the Straits Times Index (STI) here.

Dow Jones Industrial Average

• The Dow Jones closed above 51,200 last Friday and is expected to benefit from the renewed risk-on sentiment following the reported US-Iran agreement.
• Immediate resistance is around the all-time high of 51,660, while support is near the 20-day moving average around 50,569.
• The RSI remains constructive at around 58, suggesting positive momentum remains intact.
• A successful breakout above recent highs could pave the way for another leg higher in the index.

S&P 500

• The S&P 500 ended last week near 7,430 and is expected to rebound following stronger futures trading on Monday.
• Immediate resistance is the 20-day moving average around 7,465, followed by the all-time high near 7,620. Support remains around 7,280.
• The RSI has climbed above the neutral 50 level, indicating improving market momentum.
• If sentiment remains positive, the index could retest its all-time high over the coming weeks.

Learn more about the S&P 500 index here.

Nasdaq Composite Index

• The NASDAQ is expected to be one of the biggest beneficiaries of the improving market sentiment, supported by continued enthusiasm around technology stocks and the SpaceX IPO.
• Immediate support is around 26,300, while resistance remains at the recent all-time high near 27,190.
• The RSI is hovering just below the neutral 50 mark, with a move above 50 potentially signalling the start of a renewed uptrend.
• With Nasdaq futures already pointing higher, investors will be watching closely to see if the index can regain momentum and challenge its previous highs.

Learn more about the Nasdaq Composite index here.

What to look out for this week

Key dates

• Monday, 15 June: ICBC CSOP FTSE Chinese Government Bond Index ETF ex-dividend, US Industrial production (May)
• Tuesday, 16 June: US Housing starts (May)
• Wednesday, 17 June: Singapore NODX (May), FOMC meeting decision
• Thursday, 18 June: Singapore 6-month T-bills auction, US initial job claims (week ending 13 Jun)
• Friday, 19 June: U.S markets closed.
   

Get the full list of stocks with upcoming earnings and upcoming dividends. 

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