The Hang Seng Index broke above the 23,000 points mark on 18 January, thanks to Donald Trump. All he did was say that the US dollar was “too strong” and “it’s killing us” and his comment drove Hong Kong stocks up.
As part of their 2017 house view, UBS came out with 10 ideas for investors in the coming year. It ranges from US equities to investing in commodities. Investors will have a range of investment ideas to choose from and position themselves for the coming year.
2016 was not a year to boast about for the once mighty conglomerates like Keppel and Sembcorp, as they barely performed above the STI index last year. But Deutsche Bank (DB) believes that 2017 will be a more promising year.
The Malaysian Ringgit (MYR) has been in free-fall against many other currencies for the longest time now but it might reverse very soon. In the recent months, China has been investing in big projects involving the building of ports and rail links in Malaysia, with much focus on the state of Malacca.
It is commonly known that consumer staples outperform during recession. On the bright side, most of the Singapore-listed consumer companies have exposure in other ASEAN markets, where various government schemes are expected to potentially help boost domestic consumption and consumer confidence for 2017.
One feature of Asian cities is its density. Over the same land area, typically an Asian city will serve a larger population than cities in North America or Europe. A major reason for this development is the favourable precedence created by Japan and the Asian Tigers.
Having experienced such a phenomenon in 1987, 1997 and 2007, many investors do have high hopes for the stock market in 2017. I think it is highly possible that the 2017 stock market can rise to unbelievable heights, but investor sentiment will ultimately determine the fate of the stock market.
A remarkable rally across global equities marked a fresh start to the year 2017. Last year ended with the “Trump rally”, which was catalysed by the president-elect’s ambition to “Make America Great Again”.
Maybank Kim Eng (MBKE) Research reiterated their negative stance on Singapore’s banking sector. This is mainly due to the poor data that was released on November 2016 which reflected an 11th consecutive month of negative growth for loans.