Key Indices
Top Stories
Strategy | Financial Conditions Have Tightened
- Our STI target of 6,682 is based on an equity risk premium of 3.0%, which is 1x SD below the long-term mean, and risk-free rate at 2.5%. The target represents a fair 2026F PE of 18.2x and upside of 18% for the STI. We position defensively due to near-term headwinds from fiscal strains in the US and Japan and elevated inflation from a prolonged conflict in the Middle East.
Market Spotlight
- US stocks were mixed on Monday, with Dow Jones rising while S&P 500 and Nasdaq falling as information technology, energy and industrials sectors rose. There were more advancers than decliners on the NYSE.
- The FSSTI fell 8.50 points to 5,680.46, due to weakness in DBS and OCBC Bank. Both mid- and small-cap indices fell with a broad market decline on S$1.54b turnover.
Technical Analysis
Singapore Telecommunications (ST SP)
- Trading Buy Range: S$4.41-4.42
CSE Global (CSE SP)
- Trading Sell Range: S$1.21-1.22
Top Stories
Strategy | Financial Conditions Have Tightened
- Our STI target of 6,682 is based on an equity risk premium of 3.0%, which is 1x SD below the long-term mean, and risk-free rate at 2.5%. The target represents a fair 2026F PE of 18.2x and upside of 18% for the STI. We position defensively due to near-term headwinds from fiscal strains in the US and Japan and elevated inflation from a prolonged conflict in the Middle East.
Market Spotlight
- US stocks were mixed on Monday, with Dow Jones rising while S&P 500 and Nasdaq falling as information technology, energy and industrials sectors rose. There were more advancers than decliners on the NYSE.
- The FSSTI fell 8.50 points to 5,680.46, due to weakness in DBS and OCBC Bank. Both mid- and small-cap indices fell with a broad market decline on S$1.54b turnover.
Technical Analysis
Singapore Telecommunications (ST SP)
- Trading Buy Range: S$4.41-4.42
CSE Global (CSE SP)
- Trading Sell Range: S$1.21-1.22
Key Indices
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This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
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