The Singapore market is awakening and the worst of the earnings cuts has passed, say DBS Group Research analysts Yeo Kee Yan and Janice Chua in an Oct 13 report. 

Yeo and Chua note that the benchmark Straits Times Index (STI) is trading at slightly above average price-to-earnings (PE) as the 3Q2020 results season begins. Year-end target is lowered to 2750 (from 2850) at 13.8x (+0.5SD) FY2021F PE. 

US presidential candidate Joe Biden’s average poll score has widened to a 9-point lead over President Trump. “A Biden victory would lift sentiment for Asian and Singapore’s small/open economy as he pledges to end the trade war with EU and reconsider China tariffs,” note Yeo and Chua.

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