“We continue to recommend investors hold a core defensive portfolio of higher quality companies or REITs that offer secular earnings growth and/or defensive dividends, with selective exposure to topical names and small-mid cap stocks that have strong earnings tailwinds,” says the analyst.
The Singapore market is still defensive with its high yield and low valuation, says RHB Bank Singapore analyst Shekhar Jaiswal who recommends staying invested while waiting for catalysts in his Singapore equity strategy report dated Sept 8.
Should his forecast of an economic recovery in 4Q2023 materialise, he believes Singapore could see a re-rating in its equity market closer to the end of the year, supported by the services sector’s resilience, a likely pause in interest rate hikes and manufacturing and exports sector revival.
