City Developments and UOL 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 City Developments and UOL.

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

Weekly Market Review

1:47 - Macro Update

• The S&P 500 and STI both hit new milestones last week, with the S&P 500 closing at 6279 points and the STI surpassing 4000, gaining 1.7 percent and 1.2 percent respectively.
• The rally was driven by easing concerns over tariff threats and continued strength in US economic data, particularly stronger than expected nonfarm payroll numbers.
• Strong labor data led investors to scale back expectations of US interest rate cuts from three to two for the rest of the year, reflected in the rebound of the US 10-year yield to 4.35 percent and the one-year yield to 4.1 percent.
• In contrast, Singapore bond yields have continued to decline, with the one-year yield falling steadily since the start of the year, easing mortgage rates tied to floating rates.
• Lower interest rates in Singapore lifted property developer stocks such as Hongkong Land and UOL, while industrial names like Yangzijiang and ST Engineering underperformed due to sector rotation.

STI Top performers:

• Hongkong Land
• UOL
• DFI Retail Group
• City Developments
• Sembcorp

STI worst performers:

• ST Engineering
• Yangzijiang Shipbuilding
• SATS
• Frasers Centrepoint Trust

5:33 -  Singapore Property Sector

• The Singapore government introduced new property cooling measures starting 4 July 2025, including extending the seller stamp duty holding period from three to four years and raising stamp duty rates by four percentage points across all tiers.
• The seller stamp duty for properties held under one year has increased from 12 percent to 16 percent, with higher rates now applying to properties sold within four years.
• These measures aim to curb speculative activity, particularly the rising sub-sale of uncompleted units, which made up 6.5 percent of private residential transactions in 2024, up from under 2 percent in prior years.
• Property prices in Singapore continued to rise, with private property prices increasing 0.5 percent and HDB resale prices rising 0.9 percent quarter on quarter in Q2 2025, though both showed slower growth compared to Q1.
• Falling one-year bond yields and SORA rates have led to lower mortgage rates, raising concerns that increased affordability may drive further speculative buying.

9:30 - City Developments

• City Developments’ share price has rebounded strongly in recent months, recovering from a dip in April caused by trade tariff concerns
• The stock initially recovered to around 5 dollars, then dipped slightly as bond yields rose
• In recent weeks, the share price jumped again and is now trading near $5.40
• Despite the rebound, the current price-to-book ratio remains low at 0.55 times
• This valuation is still below the historical average of 0.75 times price-to-book

Related Links:

• City Developments share price history and share price target
• City Developments dividend yield and dividend forecasts

10:25 - UOL 

• UOL’s share price dipped in April due to trade tariff concerns but has since rebounded above previous levels
• It reached a 52-week high last week before retreating to around $6.50 following the announcement of new property cooling measures
• UOL’s current price-to-book ratio stands at 0.47 times, still below its historical average despite recovering from below 0.4 times previously
• The stock remains undervalued on a price-to-book basis even after the recent rally
• Key upcoming events to watch include the FOMC meeting minutes and the start of the earnings season with first half results from companies

Related Links:

• UOL share price history and share price target
• UOL dividend yield and dividend forecasts

12:00  - Technical Analysis

Straits Times Index

• The STI index reached a new high of around 4027 points on 7 July and is currently hovering near 4024, exceeding its previous high of 4005 before the April tariff concerns.
• At this elevated level, there may be selling pressure as the STI nears key technical resistance around the 4000 mark.
• Technical indicators suggest a potential slowdown in momentum, with MACD flattening and RSI at 72, a level that typically signals overbought conditions and possible pullbacks.
• Investors holding STI index ETFs or bank counters should monitor closely for signs of weakness and consider taking profit if the index starts to dip.
• A pullback toward the 20-day moving average around 3943 to 4000 could offer a better accumulation point if the index corrects.
• While strong earnings could push the STI higher, risks remain due to potential re-escalation of tariffs after 1 August, which may warrant a more cautious approach.

Dow Jones Industrial Average 

• The Dow Jones is nearing its all-time high resistance level of 45,073 points, supported by optimism ahead of the upcoming earnings season
• Major US banks, which make up a significant portion of the Dow, will lead the earnings announcements and are expected to report strong results after passing recent stress tests
• These positive stress test results allow banks to increase dividend payouts, boosting investor sentiment and contributing to the Dow’s upward momentum
• Technical indicators show MACD remains in an uptrend, suggesting continued positive momentum
• However, RSI is at 75, above the overbought threshold of 70, indicating that the index may be due for a pullback
• If a correction occurs, key support levels to watch are the 20-day moving average at 43,080 points and the 200-day moving average at 42,650 points

S&P 500 

• The S&P 500 has broken past its previous February high of 6147 to reach a new all-time high of 6284 points, over 100 points higher
• MACD and signal lines are starting to converge, indicating potential market indecision and reliance on upcoming data or catalysts to determine direction
• RSI is at 75, above the 70 overbought threshold, signaling a possible short-term technical pullback
• Historically, the index has found support at the 20-day moving average, which is currently at 6070 points
• The next major support level is at 5887 points, where the lower Bollinger Band and the 50-day moving average converge
• These levels could provide support if a pullback occurs before the index resumes its upward trend

Nasdaq Composite Index

• The NASDAQ Composite Index reached a new all-time high of 20624 points, surpassing the previous peak of around 20200 in December last year
• Despite strong performance, technical indicators show signs of weakening momentum, with the MACD and signal line moving sideways instead of upward
• The RSI is currently at 72, above the overbought threshold, suggesting a potential technical pullback similar to what occurred in May
• Past pullbacks have found support at the 20-day moving average, which remains a key level to watch for any correction and rebound
• Overall market sentiment is highly optimistic, and valuations are stretched heading into the earnings season, where any margin disappointments could trigger corrections
• Investors should consider spreading out investments around the 20-day and 50-day moving averages instead of entering at current elevated levels

What to look out for this week

• Thursday, 10 July : FOMC Meeting Minutes

Get the full list of stocks with upcoming dividends here. 

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