UBS says the latest data seems to be pointing to a scope for positive growth surprises in Singapore, “while policy risks pertaining to a fresh round of property tightening and SGD appreciation may have risen.” 

 

The house likes commodity-related plays, especially the laggards in 2010, "and recent positive growth surprises globally should remain supportive of the call;" names Noble (N21.SG), Indofood Agri (5JS.SG), Keppel (BN4.SG), Sembcorp Industries (U96.SG). 

 

He house adds, the latest employment survey validates the view that the high-end services sectors could see a new wave of employment--likes Keppel Land (K17.SG), OCBC (O39.SG). The house also favors tourism-related stocks on the rollout of new assets in 2011; names Genting Singapore (G13.SG), Overseas Union Enterprise (LJ3.SG), and SATS (S58.SG). 

 

On policy risks, the house says a fresh round of residential property tightening may be forthcoming pre-CNY, given recent price and volume momentum in the physical market, while a stronger exchange rate would penalize the retail sector and stocks with significant dollar-based assets, and revenues.