Singapore - Market Direction 11 (Nov 14 - Dec 20)

Re: Singapore - Market Direction 11 (Nov 14 - Dec 20)

Postby winston » Tue Oct 13, 2020 11:16 am

STRATEGY – SINGAPORE
4Q20: Focus On Stability And Selected Cyclicals


With the STI’s poor performance in the first three quarters of 2020 behind us, we continue to advocate exposure to equities with a focus on high-quality companies with strong earnings outlook, reopening plays, China-focused companies and selected cyclicals.

The STI’s 2021F PE of 12.6x (15% discount to its long-term average) appears inexpensive while its 2021F P/B of 0.85x - a 32% discount to its long-term mean - and forecast ROE of 8.3% is undemanding in our view.

Source: UOBKH

https://research.uobkayhian.com/content ... 56eb578b6f
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Re: Singapore - Market Direction 11 (Nov 14 - Dec 20)

Postby behappyalways » Fri Oct 16, 2020 2:36 pm

Keppel DC REIT to be included in STI from Oct 19
https://www.theedgesingapore.com/news/c ... sti-oct-19
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Re: Singapore - Market Direction 11 (Nov 14 - Dec 20)

Postby winston » Wed Nov 25, 2020 1:29 pm

Singapore Strategy – Christmas came early

Since the start of November, Singapore’s Straits Times Index (STI) has put up a stellar show, surpassing the rest of the region with gains of 17.5% (as of 23 Nov 2020).

This was largely driven by optimism about Covid-19 vaccines as cyclical and value stocks came back into focus.

Our call in September to rotate into value stocks is panning out well as under-valued, cyclical and defensive stocks showed strong gains in November.

Value stocks tend to be in play during early stages of economic recovery.

The STI is currently trading at 14.0x FY21 earnings and at a price-to-book of 0.96x, below the 10-year historical PB of 1.25x.

With lingering uncertainties in the market, we prefer to adopt a stock pick strategy.

Some of our preferred picks include Ascendas REIT, Ascott Residence Trust, CapitaLand Integrated Commercial Trust, CapitaLand Ltd, Frasers Centrepoint Trust, Frasers Logistics & Comm, Manulife US REIT (USD), Mapletree Industrial Trust, Mapletree North Asia Com Trust, NetLink NBN Trust, Sheng Siong Group, Singapore Telecommunications, UOL Group, Venture Corp and Wilmar International.

Source: OCBC
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Re: Singapore - Market Direction 11 (Nov 14 - Dec 20)

Postby winston » Fri Dec 18, 2020 9:40 am

SINGAPORE STRATEGY – RECOVERY WILL FAVOUR SG STOCKS

Recovery is likely to be uneven
Near term volatility, but LT outlook is constructive
Add SG stocks to broaden equity portfolio

Our quarter-by-quarter market strategy reports in 2020 were able to effectively match and capture market actions, but we believe that the global economic recovery is going to be largely uneven across different markets.

With the resurgence of cases in Europe, US and Japan, there is also the heightened risk that the recovery may be delayed despite optimism over the impending deployment of vaccines.

Companies which were able to play into the digitalisation of economies will continue to benefit and look set to continue to grow.

Favourable vaccine news has lifted optimism in the market and together with a low interest rate environment, equities are likely to remain in focus.

The recovery theme is likely to favour the cyclical-heavy Singapore market, which could result in a re-rating.

Singapore will enter Phase 3 on 28 Dec 2020, and this is positive and points to a gradual return to normalcy. As we are expecting the operating environment to become more challenging with tighter scrutiny and regulations, especially for high-growth sectors, Singapore stocks are good additions to provide for a more diversified and broader equity portfolio.

Our preferred picks in Singapore are Ascendas REIT, Ascott Residence Trust, CapitaLand Integrated Commercial Trust, CapitaLand Ltd, Frasers Centrepoint Trust, Frasers Logistics & Commercial, Keppel DC REIT, Manulife US REIT (USD), Mapletree Industrial Trust, Mapletree North Asia Commercial Trust, NetLink NBN Trust, Sheng Siong Group, Singapore Telecommunications, Thai Beverage, Venture Corp and Wilmar International.

Source: OCBC
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