Singtel in focus amid stock market selloff: 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 Singtel.

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

Weekly Market Review

2:09 - Macro Update

• Trump's sweeping tariffs led to sharp declines: S&P 500 and Nasdaq down ~10%, STI down ~4%.
• Fed warns tariffs may worsen inflation, while consumer inflation expectations rose to 5%
• Consumer confidence dropped due to economic uncertainty.
• With a flight to safety, investors moved into bonds. The Singapore 10-year bond yield fell from 3.1% at the start of the year to 2.5% currentky.
• Defensive stocks outperformed in the past week – Singtel (+3%), CapitaLand Ascendas REIT and CICT (+2%) outperformed as investors shifted to safer sectors.

STI Top performers:

• Singtel
• CapitaLand Ascendas REIT
• CapitaLand Integrated Commercial Trust
• Hongkong Land
• Sembcorp Industries

STI worst performers:

• SATS
• DBS
• UOB
• Seatrium
• Yangzijiang Shipbuilding

7:03 - Singtel

• Singtel outperformed the market last week, attracting defensive capital amid broader volatility.
• 76% of Singtel’s FY24 underlying profit comes from overseas operations.
• Key regional holdings include Telkomsel (Indonesia), AIS (Thailand), Optus (Australia), and Bharti Airtel (India).
• Singtel announced a strategic plan through FY27 focusing on EBIT growth and capital management.
• Targets include low double-digit EBIT growth in FY25. Singtel’s 9M FY25 EBIT is already up 20% year-on-year, putting it on track to meet its full-year growth target.
• Underlying profit rose 11% in 9MFY25, driven by strong performance in Optus and NCS.
• Regional associates’ PAT rose 4%, with Bharti Airtel up 39% and AIS/Intouch up 11%.
• Dividend strategy includes 70–90% payout of core net profit and a value realisation dividend of $0.03–0.06 per share.
• FY24 total dividend was $0.15; FY25 is tracking higher with $0.165 targeted
• Investors view Singtel as a defensive play due to its stable dividends and strong regional diversification.

Related Links:

• Singtel share price history and share price target

13:22  - Technical Analysis

Straits Times Index

• STI dropped ~2.95% on Friday, losing around 116 points — its worst one-day fall since August last year.
• For the week, STI is down about 7%, with some calling it a "Black Monday" scenario.
• The index has broken below all key moving averages, including the 200-day moving average, indicating a strong downtrend.
• Current support level is around 3,500, referencing the low observed in November last year.
• MACD shows strong negative momentum, while the RSI is below 30, signalling oversold conditions.
• Expected trading range is between 3,005 (support) and 3,600 (resistance) in the near term, as markets react to trade tensions.
• Caution is suggested before entering the market.

Dow Jones Industrial Average (DJIA)

• The Dow Jones fell 5.5% on Friday, marking its worst single-day decline since June 2020, during the COVID-19 panic.
• It is currently testing support at 38,700, the low from August last year; next major support is at 38,000, tested multiple times previously.
• MACD is strongly negative, indicating persistent downward momentum.
• The index has broken below all key moving averages, including the lower bound of the Bollinger Band at 39,800.
• RSI has dropped to 23, firmly in oversold territory, but there are no signs of a rebound yet.

S&P 500 Index

• The S&P 500 dropped nearly 6% on Friday, marking its biggest one-day decline since March 2020.
• From its all-time high in February, the index has now fallen 17%, indicating a sharp correction.
• Current support level is around 4,900, which was the April 2023 low that previously triggered a rebound.
• MACD remains deeply negative, suggesting continued bearish momentum.
• RSI is below 30, in oversold territory, but no signs of a reversal yet.
• The index is currently trading around the 5,000 level, with heightened volatility and no confirmation of support holding yet.

NASDAQ Composite Index

• The NASDAQ Composite fell 5.82% on Friday and 5.97% on Thursday, totalling a weekly drop of over 10%.
• From its December peak, the index has now declined 22%, confirming it has entered bear market territory.
• MACD is strongly negative, reflecting persistent downward momentum.
• RSI is below 30, indicating the index is in oversold territory, but there is no sign of a rebound yet.
• The next key support level is around 15,100 to 15,000, where a credible rebound was previously seen in April last year.
• The tech-heavy nature of NASDAQ makes it more vulnerable to reciprocal tariffs with China, weighing heavily on sentiment.
• The recent two-day decline is among the few instances in history with back-to-back drops of over 5%, comparable to major crises like COVID-19, GFC 2008, and Black Monday 198
• Technical indicators remain bearish

What to look out for this week

• Monday, 7 April: DBS ex-dividend
• Thursday, 10 April: US Consumer Price Index (CPI) data, 6-month Singapore T-bill auction
• Friday, 11 April: US University of Michigan consumer sentiment data, JPMorgan, Morgan Stanley, Blackrock earnings

Get the full list of stocks with upcoming dividends here. 

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