RHB bets semiconductor and industrial stocks will shine

SINGAPORE (May 29): As Singapore’s “circuit breaker” measures restricting non-essential operations ends on June 1, market watchers say it may well be an opportune time to make judicious investments. The Straits Times Index (STI) seems to have responded to this: From the March 23 low, the STI has reclaimed some 286 points to 2,519.48points on May 27. This is down 21% from the start of the year.

“Covid-19 has posed a key challenge to global economies as it brought on a reluctance to travel and reduced consumer spending,” Jarick Seet, head of small and mid-caps at RHB Securities tells The Edge Singapore. “Singapore is particularly vulnerable because of its open economy that is dependent on external trade. And with reduced trade and spending globally, counters here have had a drop in performance,” he adds.