- On a top-down basis, our 2024 year-end target of 3,290 for the Straits Times Index (STI) implies 6% upside from current levels, with the index’s current valuation looking inexpensive at 2024F P/E and P/B of 9.9x and 1.0x respectively.
A safe harbour as predicted.
- - Read this at SGinvestors.io -
Outlook.
- Globally significant events such as the US presidential election, the Israel-Hamas and Russia-Ukraine wars, and the ongoing US-China political and economic rivalry could negatively affect the market in a myriad of ways. The increased recession risk and the slow response by the US Fed are likely to push implied volatility sharply higher in 2024 when compared to 2023.
- - Read this at SGinvestors.io -
- Nevertheless, with nearly half of the STI comprising bank stocks and with potentially neutral to negative sentiment on the sector taking hold as interest rate cuts occur in 2024, the index may find it hard to outperform on an absolute basis.
Strategy for 1H24, and key focus sectors and stocks.
- Read more at SGinvestors.io.
