Recommendation:-
Against a backdrop of slow growth and falling interest rates, we expect rate- sensitive assets to outperform.
Sectors we favour are REITs, conglomerates and telecommunications.
REITs will enjoy a triple boost of dividend yields more attractive than bonds, lower interest expenses and higher valuations as cap rates compress. If asset prices get reflated, deeply discounted Singapore REITs potentially have the highest upside.
For conglomerates, electricity margins are likely to remain elevated due to low reserve margins. Additional capacity will only materialise in 2026.
ST Engineering will ride rising global defence spending and increased stockpiling of weapons as geopolitics and conflicts escalate.
We also like telecommunication as industry consolidation and cost pressures have allowed mobile operators to start raising prices. Telcos are structurally pivoting to higher-growth segments (IT services, data centres, cyber security), rightsizing their cost structures, and monetizing more assets.
ASEAN consumer stocks reeled from rising inflation and weak consumer demand in 2023. We expect a rebound on the back of a healthier export sector and fiscal stimulus. We have added names with attractive valuations and dividend yields, cash-rich balance sheets and good earnings visibility to our model portfolio. They are Valuetronics and China Aviation Oil.
Source: Phillips
https://www.poems.com.sg/stock-research ... your-back/
