2Q24 Investment Themes - RHB Invest 2024-04-15: Focus On Yields & Bottom-Up Stock-Picking

• Amid expectations of improved economic growth in 2024, higher-for-longer interest rates, and the S$ being a relative outperformer in ASEAN, we recommend that investors focus on stocks that feature earnings sustainability and offer high yields.

Opportunities exist, but investors should be selective.

• - Read this at SGinvestors.io -
• Despite the recent underperformance, we expect REITs to outperform in 2024, aided by interest rate cuts, and recommend that investors regard price dips as stock accumulation opportunities.

2Q24 investment themes.

• These are:
  1. Risks of higher inflation and (possible) delays in interest rate cuts should keep Singapore banks in investors’ portfolios;
  2. - Read this at SGinvestors.io -
  3. regard price dips as stock accumulation opportunities in REITs, with exposure in office and hospitality REITs balanced with positions in industrial REITs;
  4. retain exposure to quality companies offering defensive earnings;
  5. exposure to beneficiaries of the continued revival in Singapore’s tourist inflows; and
  6. bottom-up opportunities in the small-cap space.

Theme 1: Risks of higher inflation and (possibly) delays in rate cuts will keep banks in play

• Read more at SGinvestors.io.

Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2024-04-15 SGinvestors.io

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