Singapore Market Focus - DBS Research 2024-12-04: 3 Themes For 2025

• 3 themes for 2025: Trump trade, stocks with earnings resilience and recovery, and beneficiaries of MAS review

Theme 1: The Trump trade

• Previous report: Singapore Market Focus - Survival Guide For US Election Outcome. The red sweep scenario became a reality after the US republican party gained control of both the Senate and House. This makes it easier for President-elect Trump to push through his policies on tariffs, taxes, immigration, and energy.
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• Winners and losers of higher tariffs ahead – The ongoing China+1 trade diversification strategy is set to gain more traction and ASEAN remains an attractive destination. This is positive for Venture Corp (SGX:V03), Frencken (SGX:E28), and Grand Venture Tech (SGX:JLB), which have facilities in Malaysia and Singapore. US onshoring and return of manufacturing narrative is positive for ST Engineering (SGX:S63) through US transportation solutions provider subsidiary Transcore. On the other hand, the threat to open global trade and 60% tariffs on China is negative for Hutchison Port Holdings Trust (SGX:NS8U), Mapletree Logistics Trust (SGX:M44U) and CapitaLand China Trust (SGX:AU8U).
• Inflationary policies weight on REITs – FED funds futures’ estimates for the number of rate cuts till end 2025 has fallen to just three, down from as much as seven back in September. REITs are the casualties of Trump’s mostly inflationary policies. Companies with high gearing and weak earnings outlook or lacking earnings catalysts are also affected (e.g. Frasers Property (SGX:TQ5)). Our REITs team stays selective, with top picks Frasers Centrepoint Trust (SGX:J69U), Mapletree Industrial Trust (SGX:ME8U) and Keppel REIT (SGX:K71U) for their ability to deliver resilient returns, even if high-for-longer may return to the fore.
• Read also: Singapore Market Focus 2025 - 4 Key Takeaways To Ride Trump 2.0.

Theme 2: Stick to stocks with resilient earnings and recovery

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Kee Yan YEO CMT DBS Group Research | Fang Boon FOO DBS Group Research | https://www.dbs.com/insightsdirect/ 2024-12-04 SGinvestors.io

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