"Even with the recent outperformance, Singapore's current P/E multiples are still at a discount to levels in other major developed markets, while allocations among active funds appear light given outflows since 2022," says Morgan Stanley, whose "focus list" includes Singapore Exchange (SGX:S68
) Group, United Overseas Bank (SGX:U11) , Singapore Telecommunications (SGX:Z74) , CapitaLand Investment and Sea, Singapore-based but New York-listed.
Singapore equities have delivered 13% in total returns year to date, outperforming most global markets. Despite so, Morgan Stanley has raised its index target for Singapore stocks by 13%, citing the impending implementation of measures to revive the local bourse, which has maintained its reputation as a safe haven amid wider uncertainty.
MSCI Singapore is now seen to hit 2,150 points, based on expectations of 5-8% p.a EPS growth and P/E edging up slightly to an above-trend 15.1x as ongoing active fund outflows reverse on market reforms.
