Singapore Market Strategy - DBS Research 2019-09-02: Diversion Is Just A Few Clicks Away

Singapore Market Strategy - DBS Group Research | SGinvestors.io CDL HOSPITALITY TRUSTS (SGX:J85) MAPLETREE COMMERCIAL TRUST (SGX:N2IU) SHENG SIONG GROUP LTD (SGX:OV8)

Singapore Market Strategy - Diversion Is Just A Few Clicks Away




Rates heading lower

  • The FED is expected to lower FED funds rate by 25bps to 2%, with consensus seeing another cut by year-end to 1.75%. No breakthrough is seen in the upcoming US-China trade talks as both sides are sticking to their stand.
  • With tariffs set to go higher on both sides, our currency strategist sees USDCNY and USDSGD heading to 7.20 and 1.42, respectively, by year-end.


Valuation & yield support

  • Singapore market currently trades at 11.7x (- 1.25SD) 12-mth forward PE and 1.06x P/B (-1.5SD). The PE and PB valuations relative to their 10-year history are the most attractive among regional bourses. Furthermore, Singapore market offers the highest yield at 3.91%.
  • Despite trade uncertainties, we expect a calmer September with support at 3000~3060 for the STI.


Traveller diversion is just a few clicks away



Index review



Staying with defensive and yield stocks






Kee Yan YEO DBS Group Research | Janice CHUA DBS Research | https://www.dbsvickers.com/ 2019-09-02
SGX Stock Analyst Report BUY MAINTAIN BUY 1.800 SAME 1.800
BUY MAINTAIN BUY 2.250 SAME 2.250
BUY MAINTAIN BUY 1.320 SAME 1.320



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