Next, as fixed deposit rates remain low, higher dividend yielding Singapore stocks are more attractive to investors. The final reason for his view is the “relative safety angle”. Due to the challenging ASEAN market he says that “ a lot of investors are actually just hiding in Singapore”.
With Singapore trading at multiples which are higher than historical valuations, Nomura’s APAC equity strategist Chetan Seth is staying “neutral” on Singapore equities for the next year. “Singapore will never be there [at these levels].” he says, “Most likely you will find a country like India or maybe Korea or Taiwan .... So our concern is valuation.”
He reckons “valuation will remain elevated” for 2026 mostly due to enhanced liquidity caused by three reasons. Firstly, he is cognisant that the equity market development programme (EQDP) will support liquidity for Singapore-listed counters.
