Singapore - Market Strategy 01 (Nov 14 - Dec 25)

[winston]

Singapore Strategy – The road ahead

As Singapore celebrates its 56th birthday, there is growing optimism that the economy is poised to re-open with the easing of restrictions and the resumption of more activities.

The focus is clearly on the road ahead.

Government measures and initiatives have supported most industries during this challenging period and there were also incentives to encourage companies to digitalize and be part of the country’s smart nation initiatives.

Current market valuation of 12.9x is not excessive versus historical average of 13.3x, especially in view of the strong pick up in earnings expected for this year and next.

Earnings growth is estimated at an average 14.2% in 2021 and 11.1% in 2022.

In terms of price-to-book ratio, the STI is currently trading at 1.1x, which is also below the 10-year historical average of 1.21x.

As we expect short-term volatility to remain, we prefer a strategy of holding a portfolio of growth and cyclical stocks.

Some of our favorites includes Ascendas REIT, CapitaLand Integrated Commercial Trust, ComfortDelgro, DBS Group Holdings Ltd, Keppel Corp, Keppel DC REIT, Mapletree Industrial Trust, NetLink NBN Trust, SATS, Sembcorp Industries, Singapore Telecommunications, Thai Beverage, United Overseas Bank, UOL Group, Venture Corp and Wilmar International.

Source: OCBC

[behappyalways]

Singapore stocks: Once bitten, twice shy

Why retail investors are shifting away from the local bourse, and how SGX plans to stay

by UMA DEVI

Source: Business Times

https://www.businesstimes.com.sg/brunch ... -twice-shy

[winston]

STRATEGY – SINGAPORE
Imminent Changes To MSCI Singapore Weightings

From 1 Sep 21, Sea Limited’s weighting within the MSCI Singapore index will increase
from 2.5% to 11.0% which we believe will see more ETF-related buying of the stock.

The unfortunate ramification is that funds will sell out of the largest constituents which
include DBS, OCBC, UOB, and Singtel.

We also highlight that Yangzijiang’s share price strength (+68% ytd) may potentially see its re-inclusion in the near to medium term.

Source: UOBKH

https://research.uobkayhian.com/content ... 1e1e86760e

[winston]

Alpha Picks: Adding Lendlease REIT, Removing AREIT, SGX, Hong Leong Asia

For Aug 21, our Alpha Picks portfolio rose 0.9% mom on an equal-weight basis and
handily beat the STI which fell 3.5% mom.

On price and market cap basis, Sea materially skewed the results due to its oversized market cap relative to the rest of the portfolio.

In August, a narrow range of stocks did well, including Sea (+22.5% mom), YZJ (+19.7%
mom) and UMS (+8.1% mom).

For Aug 21, we add LREIT to our portfolio while removing AREIT, SGX and HLA.

Source: UOBKH

https://research.uobkayhian.com/content ... b2bcb427a7

[behappyalways]

Singapore planning to give local stocks a boost with Temasek fund:
https://www.straitstimes.com/business/c ... masek-fund

[winston]

Singapore to court equity listings with package including $1.1 bln fund

By Anshuman Daga

Temasek will set up a co-investment fund to invest in late-stage private funding and IPOs of high-growth firms, to anchor their listings in Singapore.

Source: Reuters

https://www.reuters.com/article/singapo ... SL4N2QI2ZW

[winston]

SINGAPORE STRATEGY – ALMOST AS STEADY AS A ROCK…

Recent market volatility was caused by nervousness over possible defaults and regulatory concern in China.

Losses extend from Asia to the US, which had largely outperformed this year.

With global valuations looking rather stretched, there is a high risk of further fluctuations ahead.

The Singapore market has been well shielded from the wide global markets fluctuations and it has done comparatively well this year with YTD gain of 7.7%.

It has proven to be fairly resilient in these uncertain and volatile times.

In addition, trading volume and activities have picked up sharply this year – the best year in the last four years.

This seems to indicate that interest is returning to the Singapore market.

Singapore has outperformed region
Volatility to remain
Hold some Singapore stocks

Source: OCBC

[behappyalways]

How Singapore’s ‘zombie’ stock exchange is undermining its financial hub dream
https://www.scmp.com/comment/opinion/as ... -financial

[winston]

SINGAPORE STRATEGY – OUTPERFORMER WITH GOOD UPSIDE

Equities have outperformed in 2021 despite concerns throughout the year about inflation, the on-going coronavirus and the latest Omicron variant, supply chain disruptions, as well as technology weakness and sell-down in China due to regulatory changes.

Singapore’s Straits Times Index has also outperformed some of the larger markets in the region with gains of 10.3% by mid-December.

One of the key areas of market focus heading into 2022 is likely to be on the two years old Covid-19 virus.

This pandemic is unlikely to end any time soon and any new variant or new cure will have a significant impact on equities, resulting in volatility in the market.

Optimism about earnings recovery led markets higher in 2021. After the sharp improvement in earnings in 2021, general market expectation is for earnings to remain healthy in 2022 but the growth rate is projected to ease off from the high levels in 2021.

As near-term volatility is likely to remain, we prefer a balanced basket of stocks, and companies that are more defensive or have stable core earnings should form part of this portfolio.

In Singapore, our picks are Ascendas REIT, CapitaLand Integrated Commercial Trust, CapitaLand Investment Ltd, DBS Group Holdings Ltd, Frasers Centrepoint Trust, Frasers Logistics & Comm, Mapletree Industrial Trust, NetLink NBN Trust, Raffles Medical Group, SATS Ltd, Sheng Siong Group, Singapore Telecommunications, ST Engineering, United Overseas Bank, UOL Group, Venture Corp and Wilmar International.

Equities outperformed in 2022
Stay invested in 2022
Hold some defensive names with strong core earnings

Source: OCBC

[behappyalways]

6 new listings to look out for into the new year
https://www.theedgesingapore.com/capita ... t-new-year