With such momentum, Macquarie now expects Singapore equities to generate earnings growth of 7% for the current FY2024 under its base case scenario, and to grow by a further 7% in the coming FY2025. It was previously projecting Singapore earnings to grow by just 3% for FY2024.
The Straits Times Index has gained 16% year to date, proving to be a "valuable volatility hedge". The three banks, the index heavyweights, drove a third of those gains. More broadly, the other Singapore listed counters have enjoyed the benefit of favourable forex and have shown to be able to pay out generous dividends with yields at 5.3% seen for FY2025, says Macquarie.
The listed companies here have also generated average ROEs of 11%, which puts them well above pre-pandemic levels.
