In 2024, real GDP quickened from roughly 3% to 4% while the Straits Times Index (STI) delivered a 24% total return, even as reported earnings growth came in at around 7%. The gap, says St Clair, is an artefact of consensus that remains “too pessimistic” on forward profits relative to the economy’s real growth and low inflation backdrop.
Interest in Singapore equities is stirring again as more investors reassess home-market allocations and look past the index heavyweights. Fullerton Fund Management’s head of investment strategy, Robert St Clair, argues that the set-up is stronger than the sceptics believe, with productivity-led growth and a supportive policy slate starting to show through in earnings and sector breadth.
He characterises 1Q2024 as a turning point for the firm’s stance on Singapore equities: from positive to outright bullish as macro signposts improved and market leadership broadened beyond the banks into industrials and property.
