DBS sees seasonal support ahead for STI as ex-dividend period approaches

Following a correction period in February, DBS Group Research sees the Straits Time Index (STI) picking up in the coming months, in-line with a strong March-April seasonal trend as well as an improved outlook for banks and upcoming ex-dividend period.

The STI has rebounded from a low of 2,870 in February as rising yields and an improved global pandemic outlook buoyed gains.

DBS Analysts Yeo Kee Yan, Woon Bing Yong and Janice Chua expect opportunities in S-REITs amidst the recent pullback.

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