From 'lockdown losers' to 'vaccine winners', small-mid caps to play catch up in 2021: DBS

The upcoming rollout of Covid-19 vaccines here will accelerate the rebound of small- and mid -cap stocks (SMC) and they are expected to catch up with larger caps on attractive valuations, says DBS Group Research analyst Ling Lee Keng in a Jan 5 note. 

The hospitality and retail sectors, in particular, will be the primary beneficiaries of the reopening of economies. 

Ling cites the 17% rebound of the Straits Times Index (STI) in the last two months for her optimistic outlook, while acknowledging that the FTSE ST Small Cap Index (FSTS) had only gained 10% during the same period, underperforming the STI.