Jasiwal believes the lifting of Covid-19 restrictions will help broaden the earnings recovery to sectors more affected by the pandemic. Since the benchmark Straits Times Index (STI) has a heavier composition of banks, this means it would be able to sustain earnings growth in an environment where higher inflation and interest rates would otherwise cut into corporate profit margins.
RHB Group Research analyst Shekhar Jaiswal is staying positive on Singapore equities in 2023, which he says continues to be a “safe haven” despite slowing gross domestic product (GDP) growth and high inflation next year.
According to Jaiswal, RHB is bullish on growth next year, after a “year of resilience and outperformance” for Singapore in 2022. For 2023, he expects corporate earnings growth to remain strong, supported by banks.
