They add that size has mattered when generating alpha in Singapore year-to-date, and thus they prefer quality mid-large cap industrial/property stocks.
Even though the equity market development programme (EQDP) may allow for further liquidity injections through the rest of FY2025, Citi analysts, Arthur Pineda, Alicia Yap, Brandon Lee, George Choi, Gan Huan Wen, Kaseedit Choonnawat, Luis Hilado and Tan Yong Hong, are cautioning investors to “beware [of entering into] a liquidity trap”.
In their report dated July 24, the analysts caution investors against chasing lower quality small- and mid-caps (SMIDs) “at the risk of being left holding the proverbial bag if or when the liquidity party ends”.
