UOB and Seatrium 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 UOB and Seatrium.

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

Weekly Market Review

1:59 - Macro Update

• Global markets saw divergent performances last week, with the S&P 500 and Nasdaq declining 1.7% and 2.5%, respectively, due to weakening US consumer sentiment driven by concerns over Trump's tariffs and inflation.
• This followed a sharp drop in January retail sales, raising concerns about the US economy.
• In contrast, the STI gained 1.3%, reaching a new all-time closing high, while Chinese markets performed well, boosted by Alibaba's strong earnings.
• Singapore also announced new measures to enhance its equity market, including a $5 billion Equity Development Program to improve liquidity.
• The Global Investor Programme will require for family offices to allocate $50 million of their assets under management (AUM) to Singapore-listed equities.
• Further regulatory changes and additional measures are expected by year-end to drive investor confidence

5:27 Singapore market updates

STI Top performers:

• Sembcorp Industries
• Jardine Matheson
• DBS
• Hongkong Land
• ST Engineering
• 

STI worst performers:

• Seatrium
• Wilmar
• CapitaLand Investment
• Singtel
• Frasers Centrepoint Trust

6:15 - UOB

• UOB reported stable fourth-quarter earnings, with net profit rising 3% year-on-year and full-year profit up 6% to over S$6 billion.
• Despite a slight decline in net interest margin to 2%, fee income growth, particularly in wealth management and credit cards, helped offset this weakness.
• UOB increased its dividend payout to S$1.80 per share for 2024, including a second-half dividend of 92 cents per share.
• Additionally, the bank announced a S$3 billion package return over three years, comprising a 50 cents special dividend in 2025 and a S$2 billion share buyback program.
• For 2025, UOB expects higher total income driven by strong loan and fee income growth.
• P/E ratio of 9.45x aligns with historical averages, its price-to-book ratio of 1.4x is above average, reflecting investor confidence in sustained returns.
• The dividend yield, including the special dividend, could reach 6%, but investor rotation into DBS, which offers a higher yield of 6.5%, may have contributed to UOB’s post-earnings share price pullback.
• OCBC’s earnings report this week will be another key event to watch.

Read also: UOB profit rises by 6% and announces special dividend: Our Quick Take

Related Links:

• UOB share price history and share price target
• UOB dividend history and dividend forecasts

12:50 - Seatrium

• Seatrium earnings showed strong revenue and profit growth, returning to profitability after years of losses due to a stronger order book.
• Revenue for the second half of 2024 rose 18% to $5.2 billion, while EBITDA increased 57% to $316 million.
• However, underlying EBITDA, excluding one-off items, was up only 3%, raising investor concerns about the sustainability of profits.
• Several one-off write-backs, including corporate claims and joint venture liabilities, contributed to the reported profit, leading to post-earnings share price pullback.
• Seatrium’s order book reached a decade-high of $23.2 billion, supported by $15.2 billion in new orders in 2024 and year-to-date 2025.
• The company also remains on track to achieve its cost savings targets by the end of 2025 through measures to reduce overhead and procurement costs.

Related Links:

• Seatrium share price history and share price target
• Seatrium dividend history and dividend forecasts

18:00 - Technical Analysis

Dow Jones Technical Analysis

• The Dow Jones fell 2.5% last week, including a sharp 1.7% drop on Friday, bringing its two-day decline to nearly 1,200 points.
• This pushed the index towards the 100-day exponential moving average at 43,261, a key support level that has historically led to rebounds.
• Indicators show strong downward momentum, with MACD diverging negatively and a low RSI at 39.
• If RSI approaches 30, signaling oversold conditions, a technical rebound could occur, similar to December’s pattern.
• A potential bounce could bring the index back to the 20-day moving average at 44,500, presenting a possible buying opportunity.

S&P 500 Technical Analysis

• The S&P 500 pulled back 1.7% last Friday, erasing the week's gains and retreating to the 50-day exponential moving average at 6,013 points, a key support level.
• Historically, this level has led to rebounds, but indicators suggest a weaker momentum this time.
• The RSI has dropped to 46, crossing below the neutral 50 mark, indicating that a technical pullback may be underway rather than an immediate rebound.
• The next key support level is at the 100-day moving average of 5,915 points, making the 5,900 levels suitable for investors considering accumulation.

Nasdaq Composite Technical Analysis

• The NASDAQ Composite Index was the worst performer last Friday, retreating to the 50-day exponential moving average at 19,577 points, closing slightly lower at 19,524.
• While the MACD remains slightly positive at 0.82, further declines could turn it negative, signaling a shift in trend.
• Among major indices, the Dow Jones is expected to rebound first, with the NASDAQ and S&P 500 following.
• Key support levels to watch are 15,500 and the 100-day EMA at 15,157, with 19,000 being a critical psychological level if the pullback continues.

STI Technical Analysis

• The Straits Times Index (STI) reached an all-time high of 3,949 points last week, driven by strong earnings from local banks, with OCBC set to report on February 26.
• The STI remains in an uptrend, as indicated by the MACD, but the RSI at 70 suggests overbought conditions, limiting further upside.
• Key resistance lies at 3,961 and the psychological 4,000 level, where selling pressure may emerge
• If a pullback occurs, the 20-day moving average at 3,867 serves as strong support.
• Additionally, the $5 billion equity plan by MAS is expected to further support the Singapore market.

What to look out for this week

• Tuesday, 25 Feb: SSB application closing date
• Wednesday, 26 Feb: OCBC earnings, United Hamphire US REIT ex-dividend, Nvidia earnings
• Thursday, 27 Feb: ST Engineering, CapitaLand Investment, Sembcorp Industries earnings, 6-month Singapore T-bill auction

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