Home Capital Broker's Calls

Slow grind awaits Singapore markets despite second wind from lockdown easing

Ng Qi Siang
Ng Qi Siang10/2/2020 03:35 PM GMT+08  • 6 min read
Slow grind awaits Singapore markets despite second wind from lockdown easing
Singapore markets are down 4.7% for 3Q2020 and 23.4% down for the year 2020.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

To the casual observer, life in Singapore seems to have regained some semblance of normalcy since the harrowing two months of circuit breaker measures. Once empty streets are once more bustling with cars while shops and restaurants have reopened for business once again. The spectre of Covid-19, which continues to ravage the global economy, appears to be nothing more than a distant nightmare.

According to CGS-CIMB analysts Lim Siew Khee and Jeremy Ng, retail sentiment remained buoyant as of August, with inflows across the board, with the pair naming financials, telcos and consumer cyclicals as their favourite sectors. Non-domestic oil exports (NODX), says CGS-CIMB analysts Lim Siew Khee and Jeremy Ng, has grown 7.7% y-o-y in August, exceeding their initial 3.4% expectation. This NODX recovery, they argue, was aided by electronics, non-monetary gold, specialised machinery and food preparation sectors.

Excluding biomedical industries, industrial production in August rose 15.3% y-o-y, underpinned by a 44.2% spike in manufacturing y-o-y as a result of a pickup in global economic activity and stockpiling following the US’s ban on suppliers to Chinese tech giant Huawei. Primary home sales also rose by 11.8% y-o-y and 16.3% m-o-m, with half coming from Rest of Central Region (RCR) projects and another 40% from suburban projects.

Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.