Weekly Review with SIAS: Singtel and Seatrium in focus

What happened?

In this week's Weekly Market Review in partnership with Securities Investors Association Singapore (SIAS), we discuss the growing upward trend in the global equity market and also share more about the following:

• Singtel 
• Seatrium

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

Weekly Market Review

2:27 - Macro Update

• The S&P 500 had a weekly gain of 0.6%, despite experiencing a slight dip later in the week after briefly rising above the 5,500 levels.
• The Dow Jones outperformed the Nasdaq over the past week, with the Dow Jones increasing by 1.4% while the Nasdaq remained flat. This suggests that investors are likely taking profits from well-performing tech stocks and transitioning towards value stocks found in the Dow Jones index.
• The STI (Straits Times Index) remained relatively flat at 3,306, with a modest weekly gain of 0.2%. Within the STI, there was a notable divergence in the performance of individual stocks.
• The US retail sales data released last week was weaker than expected, showing a lack of strong month-on-month growth over the past two months. This indicates that US consumer spending may be slightly tapering.
• Bond yields continued to decline, reaching lows last seen in March. This trend suggests that investors expect the Federal Reserve might become more confident about cutting interest rates.

4:36 - Singapore market updates

STI Top performers:

• Jardine Cycle & Carriage share price
• Singtel share price
• Venture Corporation Limited share price
• Wilmar International Limited share price
• CapitaLand Invest share price

STI Worst performers:

• CapitaLand Ascendas REIT share price 
• SATS share price
• UOL share price
• Thai Beverage share price
• Seatrium share price

5:51 - Singtel

• Since early May, the share price has risen from $2.35 to $2.64, nearing the 52-week high of $2.68.
• Singtel announced its ST28 strategy in May, focusing on improving core business performance and enhancing capital management.
• A key component of the ST28 strategy includes expanding Singtel's digital infrastructure, particularly through Nxera's data centres.
• As part of this strategy, a KKR-led consortium of KKR and Singtel announced a $1.75 billion investment in STT GDC, a major data centre provider. This investment is the largest digital infrastructure investment in Southeast Asia this year.
• A new dividend policy includes a core dividend of 70-90% of net profit and a value realisation dividend of 3-6 cents per share annually, funded by excess capital and capital recycling initiatives.

Related links:

• Singtel's share price history

11:02 - Seatrium

• Seatrium's share price has been volatile, dropping after its exclusion from the MSCI index and rebounding after winning a significant order, but recently declining again.
• The MAS and CAD are investigating Seatrium and its officers for potential offences related to Operation Car Wash, leading to a recent sell-off in shares and negatively impacting its price.
• Seatrium plans to increase EBITDA to over $1 billion and ROE to more than 8% by 2028, a significant improvement from FY23.
• Growth in EBITDA is expected from increased revenue, particularly in the renewable energy sector, and $500 million in annual savings from synergies and procurement following its merger with Keppel Offshore and Marine.

Related links:

• Seatrium's share price history

15:22 - Technical Analysis

STI Technical Analysis

• The STI is showing signs of stabilising around the 50-day moving average at 3,287 points, having reached a low of 3,288 points on Wednesday.
• The next support level for the STI is the 100-day moving average at 3,252 points.
• The MACD indicator shows negative momentum, but it is subsiding.
• The RSI is at 47, indicating weak momentum but not oversold conditions.
• Stabilisation or consolidation is expected, with no quick rebound likely until the index reaches around 3,250 points.

Dow Jones Technical Analysis

• The Dow Jones Index performed strongly, rebounding to the upper bound of the Bollinger Band at 39,249 points.
• The MACD indicator shows positive momentum.
• The key support level for the Dow Jones is the 100-day moving average at 38,459 points.
• The resistance level is around 39,889 points.

S&P 500 Technical Analysis

• The S&P 500 had a muted performance, touching a new all-time high but pulling back slightly on Thursday and Friday.
• The MACD indicator shows subsiding momentum.
• The RSI indicates overbought conditions at 71.3.
• The key support level for the S&P 500 is the 20-day moving average around 5,360 points.

NASDAQ Composite Technical Analysis

• The MACD indicator shows subsiding positive momentum.
• The RSI indicates overbought conditions above 70.
• The key support levels for the Nasdaq are the 20-day moving average at 17,305 points and the 100-day moving average at 16,268 points.

What to look out for this week

• Tuesday, 25 June: Singapore Savings Bond (SSB) application close date, SIAS Corporate Connect with Thakral Corp
• Thursday, 27 June: Nike earnings
• Friday, 28 June: US Personal Consumption Expenditure (PCE) data

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

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