Singapore Market Strategy - CGS-CIMB Research 2020-04-03: 1 Month Circuit Breaker, Not Locked Down

Singapore Market Strategy - CGS-CIMB Research | SGinvestors.io SHENG SIONG GROUP LTD (SGX:OV8)

Singapore Market Strategy - 1 Month Circuit Breaker, Not Locked Down

  • Singapore imposes is imposing a 1-month circuit breaker from 7 Apr to 4 May to slow the transmission of Covid-19. It is not a lockdown.
  • Essential services remain open - food establishments, wet markets and supermarkets, clinics, hospitals, utilities, transport and key banking services.
  • FSSTI target of 2,050 remains, on 9.5x CY21F (average market P/E in GFC from Oct 08-Mar 09).



Not “locked down” but more stringent control

  • With the death toll of five and total Covid cases of 1,114 as of 3 Apr 2020, Singapore government implemented more stringent steps by closing most workplaces except for essential services and key economic sectors to pre-empt escalating infections. Singaporeans are encouraged to stay at home as much as possible and avoid socialising beyond immediate family and only go out for essentials such as buying food and exercising at parks at ‘safe distance’.
  • The country is not locked down and remains in Dorscon Orange and not “Red” (defined as when contact tracing is hard and outbreak is uncontrollable). The government emphasised that the “circuit breaker” is not about business closures, but closing of business premises. School will be closed and go on full home based learning from 8 Apr.
  • More financial handouts are to be announced on 6 Apr.


What are the essential services?

  • Essential services allowed to stay open include
    1. healthcare and social services,
    2. food and related services,
    3. energy,
    4. water and waste management and environment,
    5. transportation and logistics,
    6. information and communications,
    7. security operations,
    8. facilities management and critical public infrastructure,
    9. manufacturing activities key to sustenance and security, and
    10. banking and finance.
  • See https://covid.gobusiness.gov.sg/.


Who remains open?



What will be closed and affected?



Bearish near term






LIM Siew Khee CGS-CIMB Research | Singapore Research Team CGS-CIMB Research | https://www.cgs-cimb.com 2020-04-03
SGX Stock Analyst Report ADD MAINTAIN ADD 1.420 SAME 1.420



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