Phillip 2Q24 Singapore Strategy - Phillip Securities 2024-04-01: Drifting Sideways

Phillip 2Q24 Singapore Strategy - Drifting Sideways

Singapore Market Strategy - Phillip Securities Research | SGinvestors.ioDBS (SGX:D05) CROMWELL EUROPEAN REIT (SGX:CWBU)

1Q24 Review:

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  • The consumer sector was a drag with high cost of living and weak economic growth.
  • REITs suffered as expectations in the number of interest rate cuts by the Federal Reserve were lowered and delayed.

Market Outlook:

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  • Apart from the government, consumer spending is holding up despite weakening disposal income. We believe higher borrowings and wealth effect (housing and equity) are supporting consumption spending.
  • The lagged impact of higher interest rates, diminishing pandemic savings, and repayment of student loans will persist as a drag on the economy.
  • On interest rates, inflation is becoming stickier than expected. The deflation in goods prices has started to stall, and services are not turning down quickly enough. Inflation becomes a challenge in 2H24 as base effects will cap the downside. Another worry is creeping oil prices from supply cuts. Our base case of two rate cuts in 2H24 is unchanged.
  • The Singapore economy is similarly drifting sideways. Exports are recovering but against a collapsein 2023. Retail sales are stable, supported by rising wages and the availability of jobs.
  • The key strength of Singapore equities is the dividend yield of 5.6%, and it is a steadfast currency. The Singapore dollar is supported by its rising foreign reserves, persistent current account surplus, and only AAA-rated sovereign in Asia.


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Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @

Paul Chew Phillip Securities Research | 2024-04-01

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