Singapore is “one step closer to dawn”, according to DBS Group Research analysts Yeo Kee Yan and Janice Chua, after companies’ earnings in 2Q20 bore the brunt of the global lockdowns with a sharp 14.9% cut in FY20F earnings for stocks covered by the bank.

“With global economies reopening, manufacturing activity in recovery and Singapore’s shift out of circuit breaker from June, we believe that the worst of earnings cuts has passed,” they write in a report dated September 7.

Unsurprisingly, companies from the travel and leisure sectors such as Genting Singapore and Singapore Airlines (SIA) took the biggest hit, followed by telco Singapore Telecommunications (Singtel), and a one-off cut for property developers (CapitaLand Limited, UOL, and City Developments Limited), possibly due to rental waivers and minimal shopper traffic.

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