- While the China reopening story may see a short-term bullish reaction in the market, we believe that recessionary risks persist nonetheless.
- For 2023, we foreacast 6% EPS growth for large-cap stocks under our coverage, and from a top-down basis, our 2023 year-end target of 3,520 for the STI implies 8% upside from current levels. Importantly, the index’s valuations are not stretched at present, trading at 2023F P/E and P/B of 10.7x and 1.0x respectively, and paying a yield of 4.5%.
A more uncertain 2023 after a firm 2022.
- - Read this at SGinvestors.io -
Singapore has recovered well.
- - Read this at SGinvestors.io -
- We believe that the Singapore market will outperform due to the prevalence of quality, value and dividend stocks relative to its regional peers. Since there will no longer be a synchronous global cycle, country risk will return and our view is that Singapore presents a lower risk vs other countries in the region, especially given the defensive nature of a number of its listed companies. The clear risk for the market is a global recession which, given Singapore’s open economy, would negatively affect it.
Staying constructive for 1H23.
- Read more at SGinvestors.io.
