“Despite the prevalence of quality, value and dividend stocks relative to its regional peers, and despite the STI’s defensive nature, we do not anticipate that the index can outperform on an absolute basis in 2H2023,” they say.
UOB Kay Hian Research analyst Adrian Loh and the brokerage’s Singapore research team say that Singapore is “still the place to be” although they have moderated their year-end Straits Times Index (STI) target to 3,240 points, down from 3,520 points, due to potential economic headwinds and the contraction of global trade which could negatively affect Singapore’s open economy.
In their Singapore strategy report dated July 19, the analysts believe that the Singapore market will largely trade sideways as Singapore’s open economy is likely to be impacted by the contraction in global trade, leading to their moderate outlook for the STI.
