UOB Kay Hian has added Genting Singapore to its Alpha Picks after the portfolio saw a flat performance for the month of July versus the Straits Times Index (STI).
“On both price- and market cap-weighted basis, our Alpha Picks portfolio rose 1.3% and 1.5% respectively and was in line with the STI’s 1.2% m-o-m increase,” the Singapore research team says in a August 4 note.
Seven stocks in the portfolio outperformed the index, including Singapore Exchange (SGX), UMS Holdings, Ascendas REIT and Frasers Logistics & Commercial Trust (FLCT). On a m-o-m basis, the stocks gained 6.3%, 5.9%, 5.8% and 5.6% respectively, compared to the STI’s 1.2% increase.
See also: Analysts cut target prices for Japfa, UOB Kay Hian downgrades to 'hold' on uncertain outlook
Stocks that underperformed include GHY Culture & Media, Hong Leong Asia and InnoTek, which fell 11.1%, 5.8% and 5.8% respectively m-o-m.
For August, UOB Kay Hian has added Genting Singapore, while removing GHY. “We have added Genting Singapore as we believe that the market will eventually price in earnings recovery in 4Q2021, backed by a prospective yield of [more than] 4%,” the team says.
The brokerage has a “buy” call on Genting Singapore with a target price of $1.08.
For more stories about where the money flows, click here for our Capital section
For GHY, the team attributes its removal due to its underperformance caused by the lockdown measures in Malaysia, which affected filming production. “We still like the group’s recovery prospects from concert productions but will opt to revisit it with better visibility on resumption in activities,” the team adds.
Photo: Bloomberg
