SINGAPORE (Nov 26): Singapore's benchmark stock index looks stuck within a narrow range for at least the first half of 2016, with stocks looking inexpensive but justifiably so given slow growth and weak earnings momentum, UOB Kay Hian says in a strategy review.

The brokerage says it is hoping for earnings recovery but sees headwinds persist, with 8% earnings-per-share growth expected in 2016.

Its favoured stocks among large-caps for next year include Ascott REIT, City Developments, DBS Group Holdings, Raffles Medical, SATS, SembCorp Industries and Singapore Telecommunications.