Singapore Airlines (SIA) 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 Singapore Airlines (SIA).

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

Weekly Market Review

2.11 - Macro Update

• US CPI data for May came in cooler than expected, easing inflation concerns and suggesting some relief on the macroeconomic front.
• Geopolitical tensions between Israel and Iran escalated, with reports of Israel striking Iran's nuclear facilities — this led to a sharp spike in oil prices, from $60 to $73 per barrel, and triggered a market pullback.
• Major indices ended the week lower, including the S&P 500 (fell 0.4%), STI and Nasdaq (which both fell 0.6%), and Dow Jones (fell 1.3%) largely due to geopolitical concerns late in the week.
• US-China trade talks showed tentative progress, with a preliminary agreement where China will ease rare earth export restrictions, though tariffs remain and the deal is still pending final approval by Trump and Xi Jinping.

STI Top performers:

• Jardine Matheson Holdings Limited
• Hongkong Land Holdings Limited
• Venture Corporation Limited
• Mapletree Industrial Trust
• DFI Retail Group Holdings Limited
   

STI worst performers:

• Singapore Airlines Limited
• Thai Beverage Public Company Limited
• City Developments Limited
• Singapore Exchange Limited
• SATS Ltd

5:08 - Singapore Airlines 

• Transport-related stocks like SIA (-2.1%) and SATS (-2.9%) declined, impacted by rising oil prices and geopolitical tensions between Israel and Iran.
• SIA posted record-high FY24/25 revenue, up 2.8% YoY, supported by 6.4% growth in passenger traffic and robust demand, despite a softer second half.
• Net profit fell slightly due to a 9.5% rise in expenses, led by fuel and staff costs, although the decline was milder than investor fears.
• SIA’s fuel hedging strategy provides partial protection, with long-term hedges extending up to five years to manage oil price volatility.
• SIA maintains resilience through a diversified global route network and airline partnerships, including a 25% stake in Air India and codeshares with 33 partners.
• Declared full-year dividend of $0.40 per share, translating to a 5.8% yield, above historical and STI averages.

Related Links:

• Singapore Airlines (SIA) share price history and share price target

13:00  - Technical Analysis

Straits Times Index

• STI fell about 0.5% last week and dropped again Monday morning.
• Singapore 3 local banks down slightly more than 0.5%, due to geopolitical tension that caused oil price spike.
• STI fell below 20-day moving average (3,904), now at ~3,894.
• Key support levels: 100-day MA at 3,851 which coincides with Lower Bollinger Band at 3,866, 50-day MA at 3,819 and the 200-day MA at 3,759
• MACD is negative indicating downward pressure.
• RSI dropped from 65 to 51, nearing sub-50 zone, signalling potential further downside.
• Watch support at around 3,800 as a key level to stabilise.

Dow Jones Industrial Average 

• Market Reversal: Initially trended up but dropped over 1% after Israel-Iran tensions escalated.
• Current Level: Now at about 42,197, below the 200-day MA of 42,502.
• Support Zones: Key levels at 41,677 (lower Bollinger Band) and 41,166 (50-day MA).
• Inflation Signal: Lower US inflation readings were positive, but oil price spike (+7%) renewed concerns.
• Rate Cut Outlook: First Fed rate cut expected only in September, per CME FedWatch.
• Technical Indicators: MACD is negative, suggesting bearish momentum; RSI at 50, nearing breakdown.
• Investor Caution: More downside likely; monitor support at 41,166 for potential rebound or breakdown.

S&P 500 

• Early Week Gains, Friday Pullback: Index rose earlier in the week but declined on Friday due to rising market risk.
• Still Above Key Level: Remains above the 200-day moving average which is a positive technical sign.
• Near-Term Support: Key levels to watch are the 20-day MA at 5,944 and the 200-day MA at 5,806.
• MACD Neutral: No clear momentum direction yet, indicating market indecision.
• Tracking Support: Price is closely aligned with the 20-day MA, which may provide near-term support.
• RSI Near Overbought: RSI recently approached the 70 level before retreating, suggesting weakening bullish momentum.
• Potential Consolidation: Mini rally may be ending and index could enter a consolidation phase.
• Accumulation Zone at 5,800 seen as a reasonable support 

Nasdaq Composite Index

• Most Magnificent 7 stocks pulled back except Tesla due to Full Self-Driving (Supervised) Subscriptions (FSD) regulation optimism.
• Index trending in a narrow range, recent oil price spike triggered decline.
• Key support levels lie at 18,758 and 18,555, where the lower bound of Bollinger Bands, and 200-day moving averages.
• MACD was negative.
• RSI was trending down and may suggest caution for tech-heavy investments.

What to look out for this week

• Tuesday, 17 June: Elite UK REIT ex-dividend
• Thursday, 19 June: Fed Interest Rate Decision, 6 month Singapore T-bill auction (BS25112X)

Get the full list of stocks with upcoming dividends here. 

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