Credit Suisse says Singapore transportation sector has generally benefited from V-shaped demand recovery in 2010; based on leading indicators, house expectations of decent global economic growth, “we continue to expect positive trade volume and passenger movement in this region in 2011.”

Says with global soft landing, 2011E could be like 2005, transportation sector could further outperform markets. Within Singapore, remains Overweight container shipping, aviation, Underweight dry bulk shipping.

Positive on SIA (C6L.SG), Outperform, as demand/pricing momentum remains positive, stock has underperformed peers with below sector-average P/B; also positive on NOL (N03.SG), Outperform, which leveraged to global trade recovery, reasonably valued at 2011E 1.2x P/B. More cautious on Tiger Airways (J7X.SG), Underperform, which has good long-term growth profile, but valuations appear expensive, and STX Pan Ocean (GZ9.SG), Neutral, which “does not look expensive, but we are negative on bulk shipping outlook on oversupply concerns.”