Singapore - Market Strategy 01 (Nov 14 - Dec 23)

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

Postby winston » Tue Feb 02, 2021 11:27 am

Pausing for a higher climb

Healthy correction currently with STI support at 2880 and 2790

Earnings watch – Sheng Siong, Riverstone, Medtecs, AEM, CAO, iFast, HPHT to deliver strong earnings

US could reach herd immunity by Sept or Oct and potential beneficiaries include MUST, Prime US REIT, ARA Hospitality REIT

Beyond green lane suspension – Favor SATS, FEHT, ART, CDLHT

M&A momentum to pick up – Valuetronics, CAO, AIMS, HPHT

Source: DBS

https://researchwise.dbsvresearch.com/R ... =gacahkhab
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Re: Singapore - Market Direction 11 (Nov 14 - Dec 21)

Postby winston » Sun Feb 14, 2021 8:36 am

Banks, property stocks could be losers from Singapore’s budget

Government proposals will likely focus on struggling aviation and tourism sectors, or companies seeking to expand, digitize or invest in new technologies like 5G, rather than spurring growth in real estate and banks.


Source: Bloomberg

https://www.thestar.com.my/business/bus ... res-budget
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Re: Singapore - Market Direction 11 (Nov 14 - Dec 21)

Postby winston » Thu Apr 08, 2021 9:56 am

SINGAPORE STRATEGY – A YEAR LATER, STRONGER AND BETTER

A year ago today, on 7 April 2020, Singapore entered into the country’s first circuit breaker (CB) with a series of preventive measures aimed at containing the spread of the COVID-19 pandemic.

A year on, the Singapore economy is poised to post GDP of 4.0% to 6.0% in 2021, a sharp turnaround from -5.4% in 2020.

The positive outlook for ASEAN and Singapore’s key markets, together with vaccines being rolled out globally, points to potential lifting of current movement restrictions and this augurs well for economic recovery.

The Singapore market is one of the top performers this year, overturning the 11.8% decline in 2020, with gains of 12% YTD.

At current level, the STI is trading at the upper end of the 10-year PER range, but this could be due to expectation of weak earnings as a result of the pandemic.

However, current PER of 13.2x PER for FY21 and 11.8x for FY22 are not excessive compared to the region.

In addition, dividend yield for the STI is estimated at 4.0% for FY21.

Some of our current favourites include Ascendas REIT (FV: SGD3.89), CapitaLand Integrated Commercial Trust (FV: SGD2.60), City Developments (FV: SGD9.12), Keppel DC REIT (FV: SGD3.51), Mapletree Industrial Trust (FV: SGD3.51), NetLink Trust (FV: SGD1.10), SATS (FV: SGD4.95), Sheng Siong (FV: SGD1.79) and UOL (FV: SGD8.91).

Singapore is a star performer YTD
Strong gains from banks and property stocks
Valuations are higher, stock picking remains critical

Source: OCBC
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Re: Singapore - Market Direction 11 (Nov 14 - Dec 21)

Postby winston » Sun Apr 18, 2021 7:58 am

DBS reveals 7 stock picks – including ComfortDelGro – for different investing strategies

by Felicia Tan

DBS Group Research says it has turned “net seller” in the past month to capitalise on the “dividend-driven” rally in March to April and to lower its equity exposure in May, which is a seasonally weak month.

DBS recommended investors accumulate Dairy Farm International, ComfortDelGro and Yangzijiang Shipbuilding should they be looking to include blue chips in their portfolio.

Investors seeking to include dividend stocks to provide a steady source of income in their portfolios should consider Far East Hospitality Trust (FEHT), Mapletree North Asia Commercial Trust (MNACT) and Prime US REIT.

For investors seeking capital growth as their primary investment goal, the team at DBS recommends China Aviation Oil (CAO) as a counter to have in their portfolio.


Source: The Edge Singapore

https://www.theedgesingapore.com/capita ... -investing
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Re: Singapore - Market Direction 11 (Nov 14 - Dec 21)

Postby winston » Mon May 17, 2021 9:00 pm

SINGAPORE STRATEGY – POWERED BY GREEN AND INNOVATION

The Singapore government’s bold Green Plan 2030 will usher in new and exciting opportunities for businesses with the twin pillars being green and innovation – positioning the country to be a leading smart nation.

Covid-19 has accelerated the adoption and use of e-commerce and companies have adapted and digitalised their businesses.

We believe this pace will continue and will become more critical, especially with the roll-out of 5G infrastructure and a wide spectrum of previously not available products and services.

While the recent emergence of more Covid-19 cases is worrying, the longer-term development plans are intact to transform and digitalise the country – green plans can complement innovation initiatives.

Companies which are able to respond to this are likely to play key roles in Singapore’s road to be more sustainable and innovative.

Singapore is readying for this, and we believe that the Singapore story remains compelling.

The STI is currently trading at price-earnings ratio (P/E) of 12.4x FY21 earnings and 11.3x FY22 earnings.

In terms of price-book, it is at 1.0x FY21 book – which is below the 10-year historical average.

We believe there is value in the Singapore market, accentuated by the recent price correction.

We continue to favour a stock pick strategy and some of our picks include Ascendas REIT, Ascott Residence Trust, CapitaLand, CapitaLand Integrated Commercial Trust, City Developments, Frasers Logistics & Commercial Trust, Mapletree North Asia Commercial Trust, Netlink Trust, UOB and UOL.

Twin pillars of innovation and green
Long-term digitalisation plans are on track
There is value in the Singapore market

Source: OCBC
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Re: Singapore - Market Direction 11 (Nov 14 - Dec 21)

Postby winston » Mon Jun 07, 2021 4:16 pm

SINGAPORE STRATEGY – EXPECT SHORT VOLATILITY EPISODE, IMPROVING OUTLOOK IS INTACT

With a volatile but good five months so far this year, what is the outlook for the rest of the year?

On the global front, we are unlikely to see an end to the Covid-19 pandemic anytime soon.

Global economic recovery is underway and the trend is likely to stay positive for the next 1 to 2 years.

With the roll-out of vaccination programmes around the world and the gradual opening of some economies, optimism has fuelled interest in value and cyclical stocks.

The recovery in earnings will also drive interest in cyclical and value stocks which underperformed in 2020 but are currently enjoying renewed buying interest.

The good news is, this trend is expected to continue for the second half of 2021.

Over the longer term, companies with strong earnings growth, especially those in the high-growth technology sector, are likely to continue to benefit from the global digitalisation trend.

The STI is currently trading at price-earnings ratio (P/E) of 12.8x FY21 earnings and 11.6x FY22 earnings.

In terms of price-book, it is at 1.0x FY21 book – which is below the 10-year historical average.

Some of our buy-rated stocks include Ascendas REIT, Ascott Residence Trust, CapitaLand Integrated Commercial Trust, CapitaLand, City Developments, DBS Group Holdings, Frasers Centrepoint Trust, Frasers Logistics & Commercial Trust, Keppel DC REIT, NetLink NBN Trust, SATS, Singapore Telecommunications, United Overseas Bank, UOL Group and Venture Corp.

Rotation into value has legs
Vaccinations pave the way for gradual re-opening
Remain positive on Singapore

Source: OCBC
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