“We think that the performances of the market, sectors and companies will diverge, as returns are influenced by the relative resilience of earnings in the face of an uncertain future. Investors should prioritise making it through these tumultuous times. The ability to pass through rising expenses, captive client bases, recurrent demand and companies with excellent financials should all be taken into account when selecting stocks.”
RHB Bank Singapore analyst Shekhar Jaiswal is favouring a defensive Singapore equities portfolio for 4QFY2023, with a mix of high yields from banks, industrial REITs, office REITs as well as exposure to companies offering visible earnings growth.
In his Oct 18 Singapore equity strategy note, Jaiswal says he expects the equities market to be volatile over the short term given the uncertain macroeconomic environment around the outlook for interest rates and economic growth in China. This is despite RHB’s expectations of moderation in inflation, a pause in the rising interest rate cycle in 2024 as well as an economic growth recovery in 2024.
