RHB believes that the sharp downgrades to the Straits Times Index’s (STI) 2024 earnings growth predictions along with near-term uncertainty surrounding global inflation, interest rates as well as outlook for economic growth have shaken investors’ confidence.
Despite a weak year-to-date market performance, the Singapore market is still defensive and could see a rerating closer to the end of the year following support by the services sector’s resilience, a likely pause in interest rate hikes, a manufacturing and exports sector revival and outperformance of the Singapore dollar, says RHB Bank Singapore analyst Shekhar Jaiswal.
“While the gradual rise in Chinese tourist arrivals will bode well for tourism-linked sectors, investors should stay anchored to higher-quality companies or REITs that offer secular earnings growth and defensive dividends,” says Jaiswal.
