The woes of the global market continue to drag down performance of the STI and investors are seeing the warning signs to be more selective in stock picking. Here are five stocks that UOBKH thinks will be better positioned. Investors Takeaway: 5 Stocks To Make Your Portfolio More Robust Valuetronics Valuetronics continue to enjoy healthy demand for the industrial and commercial electronics (ICE) segment. While it has not yet transpired to strong earnings this time round, UOBKH foresees a better earnings report for Valuetronics in the upcoming quarter. UOBKH highlights that recovery in the smart lighting segment is progressing smoothly. Valuetronics has also been focusing on more product innovation, which will help its consumer electronics division to continue driving stable growth in th

According to a recent report by Singapore Exchange, Singapore’s visitor arrival reached record highs in the first half of the year, increasing 7.4% to 10.9 million. Tourism receipts, likewise, increased 4.7% to S$6.7 billion. Over the longer term, there has also been an upward trend of visitor arrivals and average revenue per available room in Singapore, as shown by the chart below: Source: Singapore Tourism Board With China, India and Indonesia making up 43% of all visitors to Singapore, and the rising affluence in each of those countries, Singapore’s tourism industry should continue to flourish. Investors who want to benefit from this growth could look at real estate investment trusts (REITs) or stapled trusts that have exposure to the growing tourism industry in Singapore, such as

As the earnings visibility for FY19 fades, CIMB thinks that investors should temper expectations. One recommended strategy is to load up some stocks with earnings certainty or which trade at deep discounts. In addition to a risk-off environment given the volatile macro outlook amid US-China trade tensions, CIMB thinks investors should also start preparing by tactically rotating into these yield stocks. Investors Takeaway: 5 Stocks To Rotate Into In This Risk-Off Environment Ascendas REIT With positive rental reversions of 10.5 percent in 1Q19 and contributions from new acquisitions and redevelopment activities, Ascendas REIT’s (AREIT) operating metrics have been improving. Meanwhile, AREIT has ventured into the UK with the purchase of 12 logistics properties and management has guided to

Out of the universe of Singapore-listed companies that reported 2Q18 earnings, 29 percent bested UOBKH’s expectations. This is almost double of last quarter’s 15 percent, which makes 2Q18 one of the highest level of beats since 4Q16. In this article, we dive into the sector analysis of some of the top performing and underperforming sectors in 2Q18. UOBKH SG Report Card: How Did Each Sector Fare? Banks: Solid Performance But Outlook Affected By Uncertainty The banks managed to deliver solid earnings result in 2Q18. However, OCBC came out on top of DBS in this quarter by beating expectations. DBS uncharacteristically fell marginally below expectations but still managed to deliver on net interest margin (NIM) expansion. In that aspect, OCBC was still lagging behind with some catching u

Following our coverage on REITs with emerging value, we move on to 5 other REITs that are becoming appealing to investors owing to a turnaround in industry tailwinds. Investors Takeaway: 5 REITs That Are Appealing Again Suntec REIT Suntec REIT has been on a slew of asset enhancement activities and acquisitions to grow revenue and is firming up plans to further enhance the value proposition of Suntec office. Part of its plan includes upgrading exercise to refresh lobbies, washrooms and visitor management systems over the next 3 years. Development of 9 Penang Road and 477 Collins Street are still ongoing. On top of that, it recently acquired an additional 25-percent stake in Southgate Complex. When these properties are completed, it will add steam to its income stream. BUY, TP $2.30; Curr

Real estate investment trusts (REITs) fell behind property developers in the first half of the year. However, UBS expects a reversal in this trend in the second half of the year, following the implementation of a fresh round of property cooling measures effective 6 July 2018. Singapore REITs are likely to be more resilient amid heightened risk aversion, given their defensive traits. UBS’ most preferred REITs are CDL Hospitality Trusts (CDLHT), CapitaLand Commercial Trust (CCT), Ascendas REIT (A-REIT), Mapletree Logistics Trust (MLT) and Frasers Centerpoint Trust (FCT). On the other hand, property developers are likely to trade rangebound as heightened policy risk casts an overhang on the outlook for Singapore’s residential property market.  The outlook for residential property pri

As we enter 2H18, investors are now busy pruning their portfolio and re-allocating their cash into different markets. If you are one of them and looking for ideas on how you should re-allocate your portfolio, DBS thinks that Singapore should be one of the markets that you should overweight in your portfolio. Here are three reasons why DBS thinks you should take an overweight position on the Singapore market. 3 Reasons Why You Should Take An Overweight Position On The Singapore Market Singapore’s Economic Transformation Underway To Make Singapore More Attractive For Investments Singapore’s economy is historically heavy on exports. However, the Singapore government is working on an economic transformation to steer Singapore towards a more broad-based economy with the services sector to

The market is grappling with rising uncertainties from interest rate hikes and global trade war. Sentiments swung 180 degrees from optimism about a broader-based domestic economic recovery and improving corporate earnings to pessimism and fear of the impact of a US-China trade war and liquidity crunch as central banks adopt a more aggressive tightening path. Uncertainties Have Created Attractive Valuation For Singapore Stocks However, despite the doom and gloom, DBS thinks that it is now the right time to invest in the Singapore stock market. DBS notes that Singapore equity market valuation has fallen to an attractive level. The MSCI Singapore Index 12-mth forward PE swung down by two standard deviations, which is deep by historical standards. In addition, corporate earnings revision has b

There are around 40 real estate investment trusts (REITs) and stapled trusts in Singapore currently. As highlighted here, the REITs and six stapled trusts had an average distribution yield of 6.7%, as of 6 July 2018. The figure is an average, so some REITs will have an above-average yield while others will be below-average. A REIT’s distribution yield can be affected by a number of factors; one such factor is the sub-segment in which the REIT operates in. With that in mind, let’s look at the various sub-segments a REIT or stapled trust operate in, as categorised by the Global Industry Classification Standard (GICS). Retail This sub-segment holds real estate used for retail activities such as shopping centres, something that most investors would be familiar with. To know if a certai

REITs have traditionally been a mainstay in Singaporeans’ investment portfolio. However, with interest rates now rising, interest in REITs seem to have waned. However, DBS thinks that there are four good reasons why you should be investing in REITs at this point in time. S-REITs Aren’t Bonds, So Stop Pricing Them As One Investors and the market have been taking a cautious stance towards REITs due to rising interest rates and expensive valuations over the last five years. However, DBS opines that both investors and the market have been misreading drivers of REIT prices. After all, REITs are not straight out bonds and the impact of rising interest rates is mitigated by an expected upturn in rent rates. DBS notes that investors are incorrectly perceiving S-REITs as a straight forward bond

Since reaching a year-to-date high of 3,615 in early May, local benchmark Straits Times Index has shed more than ten percent amidst the amplifying volatility and trade war concerns. According to UOBKH, the retracement is largely due to a shift in interest rate hike expectations and the US-China trade spat. Such volatile time will require specific investing strategies in order for investors to beat the market. Hunting For Oversold Stocks On A Risk Premium Basis One investing strategy that UOBKH recommends is to look out for oversold stocks, which are measured by market risk premium. UOBKH notes that stocks like Oversea-China Banking Corporation (OCBC), DBS Group Holdings (DBS), Keppel Corporation (Keppel Corp) and Wing Tai Holdings (Wing Tai) have seen a rise in risk premium that is much