Yeo and Foo see a downside risk to the Straits Times Index (STI) (SGX:STI
) at 3,180 points, which coincides with 10.8 times (-2 standard deviation or s.d.) 12-month forward P/E.
DBS Group Research analysts are recommending stocks that are “defensive, stable, and rising on reopening tailwinds” to hedge against the incoming technical recession, for the month of May.
Analysts Kee Yan Yeo and Fang Boon Foo say that the odds of the Singapore economy entering a technical recession has risen, following the weaker-than-expected -0.7% q-o-q (seasonally adjusted) gross domestic product (GDP) contraction in 1Q2023.
