SINGAPORE (Nov 11): Donald Trump’s notorious US presidential win on Wednesday will surely raise volatility for Singapore’s equities, says DBS Vickers Securities.

This is largely because the chances of a Trans-Pacific Partnership (TPP) approval under Trump are now slim – and thus could affect the long-term growth prospects of Singapore.

“The prospect of Trump enforcing his protectionist stance on global trade is negative for export-reliant Singapore, which is already suffering from weaker exports,” say analysts Joanne Goh and Janice Chua in a Thursday note.

“Singapore’s exports to the US account for 7% of total exports. This, together with a likely continuation of the ‘earnings recession’ and prospect of a December rate hike should cap STI’s rebound at slightly below the 2850 level,” they speculate.

Another key risk for the market is the acceleration of normalising interest rates due to inflationary pressures and the possible implementation of Trump’s pro-growth policies.

Goh and Chua hence advise investors to “stay defensive” and go for domestic proxies like IHH Healthcare and Singapore O&G in the healthcare field, as well as consumer stocks Sheng Siong, Thai Bev and Genting Singapore.

In the land transport sector, the analysts recommend ComfortDelgro while noting it is oversold. According to them, the impact from ComfortDelgro’s recent Public Transport Council (PTC) fare cut should be “minimal” as the bus business now operates under a new contracting model.

ST Engineering is another defensive stock that should benefit from Trump’s pro-defence spending inclinations, they add, given that the group has been investing in the US with facilities in the marine, aerospace and electronics sectors.

Finally, DBS’s top picks among property developers are UOL and City Developments – which Goh and Chua believe to offer value with their merger and acquisition (M&A) catalysts.

Shares of IHH Healthcare, Singapore O&G, Sheng Siong, Thai Bev, Genting Singapore, ComfortDelgro, ST Engineering, UOL and City Developments closed at $2.12, $1.18, $1.02, 92 cents, 88 cents, $2.46, $3.07, $5.67 and $8.52 respectively.