In anticipation of the slew of 4QFY2022 results announcements, Yeo and Chua expect stocks under their coverage to deliver 20.8% earnings growth in FY2022. This will be led by banks, reopening beneficiaries and selective technology stocks.
DBS Group Research analysts Yeo Kee Yan and Janice Chua have lifted their 12-months target for Straits Times Index (STI) to 3,700 from 3,600 previously on the assumption of slower growth and no technical recession.
The analysts note that Prime Minister Lee Hsien Loong’s recent message that Singapore is able to avoid a recession has debunked some economists’ warning of one. “STI should not trade below 3,300 again in the foreseeable future as this level coincided with ‘recession valuation’,” they add.
