Stock Strategy Singapore - DBS Research 2018-07-04: Domestic And Recession-Resistant Stocks To Ride A Cautious 3Q18

Stock Strategy Singapore - DBS Group Research Research 2018-07-04: Domestic And Recession-resistant Stocks To Ride A Cautious 3q18 Singapore Recession Resistant Stocks To Buy COMFORTDELGRO CORPORATION LTD SGX:C52 DAIRY FARM INT'L HOLDINGS LTD SGX:D01 NETLINK NBN TRUST SGX:CJLU SHENG SIONG GROUP LTD SGX:OV8 SIA ENGINEERING CO LTD SGX:S59 SINGTEL SGX:Z74 SINGAPORE TECH ENGINEERING LTD SGX:S63

Stock Strategy Singapore - Buckle Up For A Rough Ride

#3 ~ Domestic and recession-resistant stocks to ride a cautious 3Q18

  • With a cautious tone set for 3Q that could stretch through the entire 2H18, on the back of rising interest rates, a strengthening USD and the rise of the trade war issues, we stay defensive and avoid stocks affected by the trade war, preferring domestic consumption plays. 
  • Against this backdrop, we sieve for stocks that are less cyclical in nature, and meet most of the criteria:-
    1. a consistent and satisfactory level of dividend payouts;
    2. net cash position,
    3. decent growth of at least 5% going forward, and
    4. domestic consumption plays.
  • Stocks that fit these criteria are mainly consumer stocks – Dairy Farm, Sheng Siong; Transport & related – ComfortDelgro and SIA Engineering; Defence – ST Engineering; and Telecommunication & related stocks – Singtel and Netlink Trust.



ComfortDelgro



Dairy Farm



NetLink Trust



Sheng Siong



SIA Engineering



Singtel



ST Engineering






Read Also:

Stock Strategy Singapore - Buckle Up For A Rough Ride #1 ~ 1H18 Review & 2H18 Outlook

Stock Strategy Singapore - Buckle Up For A Rough Ride #2 ~ Trade On Rebound

Stock Strategy Singapore - #3 Domestic And Recession-Resistant Stocks To Ride A Cautious 3Q18





Janice CHUA DBS Group Research Research | Kee Yan YEO CMT DBS Research | Lee Keng LING DBS Research | https://www.dbsvickers.com/ 2018-07-04
SGX Stock Analyst Report BUY Maintain BUY 2.590 Same 2.590
BUY Maintain BUY 9.770 Same 9.770
BUY Maintain BUY 0.870 Same 0.870
BUY Maintain BUY 1.200 Same 1.200
BUY Maintain BUY 3.920 Same 3.920
BUY Maintain BUY 3.700 Same 3.700
BUY Maintain BUY 4.100 Same 4.100



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