Last month, DBS reduced its Singapore GDP growth forecast to 1.7% from its earlier estimates of 2.2% amid uncertainty over the manufacturing sector’s recovery prospects and a “normalising” services sector recovery.
DBS Group Research has lowered its Straits Times Index (STI) year-end target to 3,450 points, down from 3,600 points previously, as it turns “neutral” on Singapore from its earlier rating of “positive”.
In the DBS Regional Market Strategy 2H2023 Outlook, analysts Yeo Kee Yan and Foo Fang Boon say that their new target of 3,450 for the STI points to a better second half of the year for equities, considering the benchmark’s flat 1H2023 performance, and represents an upside of some 8.1%.
