RHB’s end-2022 STI target of 3,380 points is based on a 12.5x 2022F P/E, which lies between the average forward P/E since Jan 2008 and its -1SD.
RHB Group Research analyst Shekhar Jaiswal has a positive outlook for Singapore equities in 2HFY2022 as the economic reopening, the country’s safe haven status and its currency should help the Straits Times Index (STI) to outperform most regional markets.
In his Singapore equity strategy report, Jaiswal says he still remains constructive on STI delivering positive returns in 2022. However, he believes an upward move for the index will be a slow grind as investors assess the impact of rising inflation, rising interest rates, and slowing economic growth.
