"In our view, there could be further downside risk to consensus earnings estimates should a full-scale trade war break out given the interconnected nature of companies in Singapore," adds Loh.
US President Donald Trump's "Liberation Day" has prompted the UOB Kay Hian research team led by Adrian Loh to estimate that the Straits Times Index component stocks will suffer 1.5% drop in earnings this year, versus earnings growth of 1.3% for the broader universe of Singapore stocks.
"The selloff driven by the US’ unprecedented and perplexing tariff plans has liberated many investors of profits this year," says Loh.
