Given that China is currently undergoing a major economic transition, there is no better time to re-evaluate the importance of the Chinese economy as part of one’s investment exposure.
3Q18 was a solid quarter for Singapore banks in general. All three banks managed post growth that rode on the rising interest rate environment to widen its net interest margin. However, given the pitfalls of worsening trade relations between the two largest economies in the world, can Singapore banks still manage to turn in a solid performance over the next few quarters? More importantly, can the three local banks survive the market sell down that has been partly driven by trade war fears?
The STI fell 7.3 percent in the month of October as trade war worries, rising interest rates and correction in the US stock market weighed on the local market. The underperformance was underlined by weaker performance from property and O&G stocks after new property measures were announced and amidst the oil price correction.
With the recent market sell down, investing in shares with strong fundamentals has become paramount to long term investors. For long term investors, DBS recommends accumulating on strong blue-chip names with significant upside, based on their current share price.
With the major indices in US shedding off gains, there is a growing concern that the market is returning to a state of panic. As global equities enter a phase of correction (some already in bear markets), DBS recommends investors to get defensive in the current sell down climate. Turning towards yield plays, investors are recommended to seek shelter from income stability.
To help investors make better portfolio allocation, DBS regularly publishes its model portfolio. The model portfolio consists of a basket of shares that DBS thinks are worth investing in. In this article, we are going to highlight three of them that DBS thinks are worthy to be in every investor’s portfolio.
Market sentiments remain dampened by external concerns. In Malaysia, the new government’s policies signaled business-friendly overtures. Moving forward, UOBKH believes that there are a number of catalysts that will drive a rise in share price of selected MY stocks. These catalysts include asset monetisation, recovery in earnings and potential relocation of some manufacturing supply chains due to the trade war. Among the stocks in its coverage, here are five MY stocks that UOBKH recommends for investors looking for double-digit returns.
Most investors in the market are familiar with the name Mapletree. After all, it is the sponsor of four different REITs that are listed on SGX with strong firepower. In the past 12 months, the Mapletree Group of REITs have been one of the more active S-REITs with acquisitions worth $3.1 billion made in Singapore, Hong Kong, China, Japan and the US. We dive into the Mapletree brand to see what makes its REITs so unique in the S-REIT space.
The Hang Seng Composite Small and Mid-Cap Index did not post the best of performance this year. From January 2018 to end-September, the index fell more than 15 percent, underperforming the benchmark Hang Seng Index or the HSI. According to UOBKH, the underperformance is attributable to the weaker trading liquidity, corporate governance risk and less defensive nature of small and mid-caps compared to the blue chips.
The woes of the global market continue to drag down performance of the STI and investors are seeing the warning signs to be more selective in stock picking. Here are five stocks that UOBKH thinks will be better positioned.