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.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook