Singapore Monthly (Feb 2019) - DBS Research 2019-02-08: Truce Outcome And Earnings In Focus

Singapore Monthly Strategy - DBS Group Research  | SGinvestors.io STARHUB LTD (SGX:CC3) SINGAPORE TECH ENGINEERING LTD (SGX:S63) YANGZIJIANG SHIPBLDG HLDGS LTD (SGX:BS6) NETLINK NBN TRUST (SGX:CJLU) COMFORTDELGRO CORPORATION LTD (SGX:C52)

Singapore Monthly (Feb 2019) - Truce Outcome And Earnings In Focus




Expansionary budget expected

  • Singapore’s FY18 budget position could surprise with a S$3.3bn surplus. Our Singapore economist says Budget 2019 could touch on 3 areas:
    1. review of existing guidelines pertaining to skilled foreign workers;
    2. prepare Singaporeans for the future via upgrading of skills, education & healthcare investment, strengthening social safety net;
    3. help companies venture regionally.


January’s gains hard to match

  • At 3200, STI trades at slightly above 12x (- 1SD) 12-month forward PE. The outcome of the 90-day trade truce that ends on 1 March is a key focus this month. The YTD global stock market rally leaves little room for disappointment.
  • We are watchful that US stock market indices have limited near-term upside. Rotational interest could surface here, supported by regional funds inflow with the USD pullback.
  • The STI support level is at 3123, resistance at c.3225, 3270.


S-REITs stay in favour, interest should spill to small-mid caps



Rotational interest could turn to yards

  • Sector interest should pick up if merger speculation between Singapore Yards. This is after merger news of Korean juggernauts Hyundai Heavy Industries (HHI) and Daewoo Shipbuilding & Marine Engineering Co., Ltd (DSME); and merger of CAPITALAND LIMITED (SGX:C31) and Ascendas Singbridge.
  • SEMBCORP MARINE LTD (SGX:S51) is our top pick in the event of merger speculation.


Earnings season picks after January’s rally






Janice CHUA DBS Group Research | Kee Yan YEO CMT DBS Research | https://www.dbsvickers.com/ 2019-02-08
SGX Stock Analyst Report BUY MAINTAIN BUY 2.450 SAME 2.450
BUY MAINTAIN BUY 4.150 SAME 4.150
BUY MAINTAIN BUY 1.820 SAME 1.820
BUY MAINTAIN BUY 0.870 SAME 0.870
BUY MAINTAIN BUY 2.560 SAME 2.560



Advertisement



MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



loading.......



ANALYSTS SAY


loading.......