DBS Stock Pulse: (1) 3 sectors to watch post-FOMC meeting (2) iFAST - Trend channel support likely to halt correction
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Group Research - Equities20 Mar 2025
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Market View Update

3 sectors to watch post- FOMC meeting 

  • The Fed sticking to its rate cut outlook amid a still resilient US economy was a relief for markets
  • The Fed sees a robust and resilient US economy, and is committed to act swiftly amid rising uncertainty around the economic outlook -> 2025 growth target lowered to 1.7%, from 2.1%
  • 2 X 25bps rate cuts for this year maintained, with Trump’s tariff policies having only a ‘transitory’ impact on inflation -> 2025 inflation target raised to 2.8%, from 2.5%
  • #1: REITs could be rangebound in the near-term, as the Fed sticks to its 2 X 25 bps cut outlook
  • FSTREI Index may trade within the 635 to 660 range, after a strong 4% run since 10-Mar
  • Any pullback may create an opportunity to add selectively -> top picks: FCT, CICT, MINT, MLT, KREIT
  • #2: Technology stocks should be underpinned by resilience in both the US economy and technology sector spending -> preferred picks are GVTL, UMSH, and FRKN for their improving earnings outlook and exposure to global semi value chain players
  • #3: Banks’ share prices could find support heading into the ex-dividend period in April, but likely with upside capped
  • April dividend (incl special)UOB: 17, 3.1% yield at last close; OCBC: 57Scts, 3.4% at last close
  • STI’s near-term resistance is at 3950-4000



Stocks to Watch

iFAST

Trend channel support likely to halt correction

  • iFAST’s precipitous fall from SGD8.83 high in late February runs contrary to the recent slew of positive news that included:
  • Better-than-expected FY24 earnings driven by stronger wealth management business and iFAST’s Global Bank turnaround
  • Expansion into Thailand
  • Our analyst recently raised iFAST’s TP to SGD10.88, riding on Asia’s wealth boom
  • We’ve not heard of any negative news that could have triggered the recent price weakness
  • Tactical call to accumulate iFAST at current level
  • We view the current sell-down as profit taking that seems atypical of the stock’s trading behavior over the past 1 year as it rides within a slightly rising trend channel
  • Near-term downside looks limited as the decline has touched the trend channel support line
  • Any ‘undershoot’ below this support line should be temporary, support levels seen at SGD7.18 if it does happen


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Note: All views expressed are current as at the stated date of publication.
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