“The Straits Times Index (STI) should deliver double-digit earnings per share (EPS) growth, thanks to strong growth from the banks. While the STI’s low price-to-earnings ratio (P/E) could be reflecting investor concerns about the sustainability of EPS growth amidst a potential recession, it is not the base case,” says the analyst.
RHB Group Research analyst Shekhar Jaiswal is “overweight” on the consumer, financials, healthcare, industrials, industrial Singapore REITs (S-REITs) and transport sectors, and neutral on food products, real estate and non-industrial S-REITs.
In his market outlook dated Jan 5, Jaiswal says that Singapore’s defensive earnings growth, low valuations and benefits from the reopening of China’s borders should continue to attract investors.
