Weekly Review with SIAS: Singtel and Nvidia 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
• NVIDIA

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

Weekly Market Review

2:00 - Macro update

Tech stocks saw further gains

• S&P 500 closed above 5,300, but with divergence and volatility
• Dow Jones down 2.3%, NASDAQ up 1.4% (boosted by Nvidia and AI-related stocks)

4:21 - Singapore market updates

STI Top performers:

• Yangzijiang Shipbuilding
• Thai Beverage
• Venture Corp
• SGX
• City Developments

STI Worst performers:

• UOL
• ST Engineering
• Jardine Matheson
• Seatrium
• Sembcorp Industrles

5:05 - Singtel

• Share price has been range-bound between 2.30-2.60 over the past 6 months, recovering slightly to 2.40 in the past month.
• Singtel reported their full year results last week, with revenue and operating profit flat over the past 12 months.
• Regional associates' profit and underlying net profit increased.
• Headline net profit weakened due to impairment relating to Optus.
• Singtel 28 unveiled: Strategic growth plan to drive sustained value realisation
• Dividend policy: Singtel to pay out core dividend (70-90% of underlying net profit after tax) and value realisation dividend (up to 6 cents per share annually)

Find out more about Singtel here.

11:32 - NVIDIA

• NVIDIA has seen a surge in demand for its AI-related services, which has helped lift sentiment towards US tech stocks.
• NVIDIA's reported earnings show very strong growth, with revenue of $26 billion in the first quarter, close to three times the previous year's figure.
• Operating income also saw significant growth, reaching $18 billion in the first quarter, nearly half of the previous year's total.
• Gross profit margin has increased, contributing to higher net profit, and the company generated strong cash flow of close to $15 billion in the quarter.
• NVIDIA has announced a share repurchase program, using its free cash flow, with $14.5 billion remaining for repurchases as of the end of Q1.
• Longer-term demand is expected to come from various businesses, including enterprise, cloud, and autonomous machines.

17:20 - Technical Analysis

Straits Times Index

• Fed officials say there may not be a rate cut this year, or it may only happen later in the year
• This is positive news for Singapore's STI index, which is dominated by the three Singapore banks
• STI is recovering from last Friday's pullback and is close to the year-to-date high of 3,324 points
• Support zone is around 3,250 points, and a pullback to this level could be a good opportunity to accumulate

Dow Jones Index

• Had a 600-point drop on Thursday due to Fed officials' comments on higher-for-longer interest rates
• Now at 20-day moving average, which could be a good point to accumulate
• Looking for a pullback to 38,500 points, which is around the 100-day moving average
• Indicators show a change of direction and a potential pullback

S&P 500 Index

• Had a slightly better Friday than Dow Jones, but still down from Thursday's drop
• Still staying around 5,300 points, with a high of 5,341 points on Thursday
• Looking for a pullback to 5,100 points, which is around the 20-day moving average
• Indicators show a change of direction and a potential pullback

NASDAQ Composite Index

• Had a new record close on Friday at 16,920 points
• Year-to-date high was on Thursday at 16,996 points
• Looking for a pullback to 16,000 points, which is around the 20-day moving average
• Indicators show a change of direction and a potential pullback

What to look out for this week

• Monday, 27 May: 30-year SGS Bond application closing date
• Tuesday, 28 May: Singapore Savings Bond (SSB) application closing date
• Wednesday, 29 May: SATS earnings
• Thursday, 30 May: US PCE Price Index data

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

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