💰 Market enthusiasm surging, driving virtual assets higher, with COIN being added to SPX.
💹 $Food Empire(F03.SI)$/ $DFIRG USD(D01.SI)$ /$Sheng Siong(OV8.SI)$: The momentum in supermarket consumption is strong, benefitting local food retailers in Singapore.
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| S’pore’s strong buys
As the macroeconomic environment improves, $Straits Times Index(STI.SI)$ has rebounded by over 8% since its low on April 9.
Today, $Food Empire(F03.SI)$ surged by 9%, bringing its year-to-date increase over 80%, driven by impressive quarterly earnings and a positive outlook for the local Southeast Asian market.
Additionally, $Sheng Siong(OV8.SI)$'s stock has gained over 16% year-to-date and reached a historic high this week. With Sheng Siong planning to open more stores across Singapore, the chain aims to reach 77 locations by the end of March 2025, indicating further potential for market capitalization growth.
Changing consumer habits in Singapore have led to a favorable outlook for supermarket stocks this year. With more people opting to dine at home, supermarket sales have rebounded. DBS Bank projects a 5% growth in the grocery market related to home dining over the next five years, benefiting local food grocery companies and supporting the growth momentum in supermarket consumption.
| Market recap
On Monday and Tuesday, enthusiasm soared, with major U.S. indexes experiencing broad gains; $S&P 500(.SPX)$ rose by 4% and $NASDAQ(.IXIC)$ increased by 6%.
During the same period, $NASDAQ Golden Dragon China Index(HXC)$ rose by 5%, with $Daqo New(DQ)$ gaining over 14% and $Tencent Music(TME)$ accumulating over 4%.
Megacaps - more good news
NVDA rose by 5.6% and TSLA increased by nearly 5%.
$NVIDIA(NVDA)$ secured a significant order from a Saudi investor, boosting investments in data centers. The Saudi AI company Humain purchased over 18,000 of NVDA's latest artificial intelligence chips for building large data centers.
$Tesla Motors(TSLA)$ climbed nearly 5%, reaching a new high since February 24, with its market capitalization rebounding to $1.07 trillion. Musk announced that Tesla's Robotaxi platform will launch in Saudi Arabia and will synergize with a pilot project starting in Texas in June, indicating a major shift in its future business.
Tariff exemptions between the U.S. and China have driven up the stock prices of $Amazon.com(AMZN)$ and $Apple(AAPL)$, as these two companies were previously thought to be the most impacted by tariffs.
MAGA - big on the block
$Coinbase Global, Inc.(COIN)$ surged by 24%, $Hut 8 Mining Corp(HUT)$ increased by 8%, and $Strategy(MSTR)$ rose by 4%, reflecting strong enthusiasm in the market, with virtual assets climbing. COIN's inclusion in the SPX led to record-breaking gains. Virtual assets are stepping into mainstream visibility, bolstered by the Trump family's and SEC's increasingly open attitudes, raising market expectations for related stocks.
Top movers - AI, nuclear
AI darlings are playing dominant parts, with PLTR rising by 8% and APP increasing by 6%.
$Palantir Technologies Inc.(PLTR)$ rose by 8%, making it one of the best performers in the SPX, with its market value surpassing $300 billion for the first time.
$AppLovin Corporation(APP)$ increased by 6%, accumulating a two-day gain of 12.65%, reaching the highest price since February 2025. APP recently announced an optimistic Q1 report, serving as a major driver for stock price growth. The company's future outlook is also positive, with improvements in the global economic environment contributing to the price increase.
Nuclear sectors, owing to AI surge, are also performing well.
$NuScale Power(SMR)$ surged post-earnings, increasing over 16%, while $Oklo Inc.(OKLO)$ rose nearly 7%.
SMR reported quarterly sales of $13.4 million, significantly exceeding market expectations.
News of a trade truce has boosted stock prices for cruise and airline companies.
$Carnival(CCL)$ rose by 2.7% and $Royal Caribbean Cruises(RCL)$ increased by 2.3%, with the market anticipating that the U.S.-China tariff ceasefire will enhance consumer confidence.
$U.S. Global Jets ETF(JETS)$ rose by 2.5% and $Airbnb, Inc.(ABNB)$ increased by 3%, contributing to an overall rise in the airline and travel sectors, with major airline stocks broadly up.
| Dividend Plays - Food retailers
Under expectations of stable growth, the cash flow held by food retailers enables them to maintain regular dividends.
$Food Empire(F03.SI)$ - YTD +81%, Div yield 3.36%
The company operates as a global branding and manufacturing firm in the food and beverage sector, offering instant beverage products, frozen convenience foods, and snacks. Its proprietary brands include MacCoffee, Café PHO, Petrovskaya Sloboda, Klassno, Kracks, and OrienBites.
Thanks to strong performance in the Southeast Asian market, Food Empire Holdings reported a 16% year-over-year increase in Q1 revenue, and the company expects Asia to continue being the fastest-growing market, with minimal impact from tariffs.
$DFIRG USD(D01.SI)$ - YTD +23%, Div yield 3.81%
A leading Asian retailer committed to “Sustainably Serve Asia for Generations with Everyday Moments.” As of December 31, 2024, the Group and its associates operated over 10,700 outlets and employed more than 190,000 people.
The high-end grocery market is beginning to recover, and DFI Retail's upscale food and grocery stores located near residential areas are expected to see returns. The company also noted improvements in the profitability of its core business, enhanced cost control, and reduced earnings drag through the sale of Yonghui shares.
$Sheng Siong(OV8.SI)$ - YTD +14%, Div yield 3.50%
One of Singapore's largest supermarket chains, Sheng Siong offers consumers a diverse selection of products.
The company's operational performance sends positive signals to investors. In Q1 2025, this supermarket chain reported a 7.1% year-over-year revenue increase, reaching SGD 403 million, while net profit grew by 6.1% to SGD 38.5 million. For Q1 2025, the gross profit margin was 30.3%, up from 29.4% the previous year.
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