Key Indices
Top Stories
Sector Update | Banking
- Singapore banks are supported by structural tailwinds, which remain intact. We do not expect these seasonal promotions for fixed deposits to degenerate into a price war. DBS would be least affected given its strong deposit franchise with high CASA ratio of 54.4% and low LDR of 73.5%. Maintain MARKET WEIGHT. We upgrade DBS to BUY (Target: S$83.60) due to its resilient deposit franchise and attractive 2027 dividend yield of 4.7%.
Company Update | Food Empire Holdings (FEH SP/BUY/S$1.92/Target: S$3.49)
- FEH’s strong brand equity and distribution network support pricing power and demand resilience amid prolonged inflation, with potential market-share gains. Russian operations remain unaffected by recent measures against Nestlé. Excluding Russian earnings from valuation is unjustifiable. Maintain BUY with an unchanged target price of S$3.49. FEH trades at an attractive 12.2x 2027F PE, a 39% discount to peers’ 20x.
Market Spotlight
- US stocks were higher on Friday. All indices rose as the real estate, consumer discretionary and health care sectors rose. There were more advancers than decliners on both NYSE and NASDAQ.
- The FSSTI fell 11.07 points to 5,401.89, on the back of weakness in DBS and Sheng Siong, with both mid- and small-cap indices rising with a broad market decline on a S$2.58b turnover.
Technical Analysis
Food Empire Holdings (FEH SP)
- Trading Buy Range: S$1.91-1.92
AEM Holdings (AEM SP)
- Trading Buy Range: S$11.05-11.06
Top Stories
Sector Update | Banking
- Singapore banks are supported by structural tailwinds, which remain intact. We do not expect these seasonal promotions for fixed deposits to degenerate into a price war. DBS would be least affected given its strong deposit franchise with high CASA ratio of 54.4% and low LDR of 73.5%. Maintain MARKET WEIGHT. We upgrade DBS to BUY (Target: S$83.60) due to its resilient deposit franchise and attractive 2027 dividend yield of 4.7%.
Company Update | Food Empire Holdings (FEH SP/BUY/S$1.92/Target: S$3.49)
- FEH’s strong brand equity and distribution network support pricing power and demand resilience amid prolonged inflation, with potential market-share gains. Russian operations remain unaffected by recent measures against Nestlé. Excluding Russian earnings from valuation is unjustifiable. Maintain BUY with an unchanged target price of S$3.49. FEH trades at an attractive 12.2x 2027F PE, a 39% discount to peers’ 20x.
Market Spotlight
- US stocks were higher on Friday. All indices rose as the real estate, consumer discretionary and health care sectors rose. There were more advancers than decliners on both NYSE and NASDAQ.
- The FSSTI fell 11.07 points to 5,401.89, on the back of weakness in DBS and Sheng Siong, with both mid- and small-cap indices rising with a broad market decline on a S$2.58b turnover.
Technical Analysis
Food Empire Holdings (FEH SP)
- Trading Buy Range: S$1.91-1.92
AEM Holdings (AEM SP)
- Trading Buy Range: S$11.05-11.06
Key Indices
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