If you are planning to invest in China, then there are three investment themes that you cannot miss. Maybank Kim Eng (MBKE) believes that these three investment themes will help you outperform the market in 2018.
2018 is going to be an eventful year for Malaysia. With Malaysia’s 14th general election due in mid-2018, the interim run-up to the elections could be a period of volatility for both equities and MYR. Despite that, MBKE is still cautiously constructive on Malaysia equities into 2018. This is due to the sustained GDP and corporate earnings growth resuming for the second year.
The Straits Times Index (STI) was one of the best performers among ASEAN markets in 2017. Moving forward, Maybank Kim Eng (MBKE) expects STI to continue to rally into 2018 with an end-2018 index target of 3,670, which reflects an about an eight percent upside for the year. For investors who are seeking alpha above the STI returns, there are three investment themes that MBKE recommends.
Following a year of relative underperformance and caution investing, the consumer sector is heading towards a more optimistic outlook in 2018. So far, Singapore has been weak with consumer staples underperforming and consumer discretionary remaining flat. However, DBS has singled out Singapore for its laggard performance as a key driver in 2018.
Few years back, barely more than a small handful of people had any idea about cryptocurrencies. Today almost anyone who is literate knows about cryptocurrency. The interest in cryptocurrency is getting stronger by the day as the major cryptocurrencies like Bitcoin, Ethereum and Litecoin continue to soar in value.
After a dip in form in 2016, Malaysia’s economy rebounded strongly in 2017. Stabilisation in the commodities sector, a strong turnaround in external demand for manufactured goods, a rebound in spending by consumers and recovery in tourist arrivals propelled the economy to meet consensus economic growth forecast for 2017.
Singapore’s retail real estate investment trusts (REITs) are in an unenviable position. Retail REITs might be enjoying a cyclical recovery from a rebound in tourism and a more constructive economic landscape, but analysts from Maybank Kim Eng believes that these are not enough to overcome the headwinds.
Equities have been outperforming other asset classes in 2017. Given the strong run in performance of stocks in 2017, would stocks still be the go-to asset class in 2018? According to JP Morgan, the answer is a resounding yes!
If 2017 was a year of reinvestment for developers, 2018 would be a year of more reinvestment and execution. Having accumulated a good inventory of land, developers will be ready to pounce on the recovering property market in Singapore.
Following our earlier article on the outlook of REITs in 2018, here is a selection of the top REIT picks recommended by CIMB and DBS that investors can consider picking up.