Singapore 2021 Equity Outlook - RHB Invest 2021-01-04: Keep A Fine Balance In Your Portfolio

Singapore 2021 Equity Outlook - RHB Invest | SGinvestors.io CAPITALAND LIMITED (SGX:C31) CDL HOSPITALITY TRUSTS (SGX:J85) CITY DEVELOPMENTS LIMITED (SGX:C09) DBS GROUP HOLDINGS LTD (SGX:D05) SINGTEL (SGX:Z74) ARA LOGOS LOGISTICS TRUST (SGX:K2LU) FU YU CORPORATION LTD (SGX:F13) PRIME US REIT (SGX:OXMU) RIVERSTONE HOLDINGS LIMITED (SGX:AP4) SHENG SIONG GROUP LTD (SGX:OV8) SINGAPORE TECH ENGINEERING LTD (SGX:S63)

Singapore 2021 Equity Outlook - Keep A Fine Balance In Your Portfolio

  • The STI, with significant weighting towards cyclical sectors, should find favour among investors on growing optimism on the pick-up in economic activity, better private consumption, Singapore’s efficient management of COVID-19 infections, and business confidence as the vaccination drive gathers pace in late 2H21F.
  • Still, the global COVID-19 situation remains fluid and economic recovery may be uneven. Selectively add positions in domestic consumption recovery cyclical plays, while staying invested in defensive picks, to cover downside risks.



Domestic recovery theme to play out first, vaccine-dependent sectors to recover in 2H21.



Cover downside risks with defensive sector exposure.

  • Inability to control COVID-19 infections in countries that are Singapore’s key trade partners, or countries that account for the highest number of tourist inflows, could derail expectations of an economic recovery that is currently in place. In addition, there are external risks stemming from the continued deterioration of US-China ties. To cover for downside risks from an uneven and uncertain economic recovery, we recommend that investors stay invested in high-yield stocks that offer some growth visibility.
  • Our defensive growth and/or high-yield picks are


Market valuations remain compelling.

  • At 13.8x 2021F P/E, the STI is the cheapest market in ASEAN. Its 4% 2021F yield is the highest in Asia. The persistence of almost-zero interest rates, elevated global liquidity, and the reversal of funds flowing into Asia should bring investors to high-yield markets like Singapore.
  • Our end-2021 STI target of 3,144 points is based on a 13.5x forward P/E.





Shekhar Jaiswal RHB Securities Research | https://www.rhbinvest.com.sg/ 2021-01-04
SGX Stock Analyst Report BUY MAINTAIN BUY 3.750 SAME 3.750
BUY MAINTAIN BUY 1.250 SAME 1.250
BUY MAINTAIN BUY 9.500 SAME 9.500
BUY MAINTAIN BUY 30.000 SAME 30.000
BUY MAINTAIN BUY 3.100 SAME 3.100
BUY MAINTAIN BUY 0.720 SAME 0.720
BUY MAINTAIN BUY 0.300 SAME 0.300
BUY MAINTAIN BUY 1.000 SAME 1.000
BUY MAINTAIN BUY 2.730 SAME 2.730
BUY MAINTAIN BUY 1.870 SAME 1.870
BUY MAINTAIN BUY 4.400 SAME 4.400



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