After quarters of being buffeted by the pandemic, the earnings recovery trend is normalising in the Singapore market, say DBS Group Research analysts Yeo Kee Yan, Janice Chua and Woon Bing Yong.

“The positive earnings revision trend in 4QFY2020 and 1QFY2021 has halted. 2QFY2021 saw a -2.9% q-o-q earnings cut for FY2021F and flat for FY2022F for stocks under our coverage as the reintroduction of Covid-19 restrictions dealt a blow to stocks which would have benefited from reopening,” note the analysts in an Aug 27 note. 

The trajectory of Singapore’s y-o-y GDP recovery is likely to peak at 14.7% y-o-y growth in 2QFY2021 and should normalise going forward, say DBS Group Research.

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