Home News In print this week

Where to invest in 2018?

Sharanya Pillai
Sharanya Pillai12/25/2017 08:00 AM GMT+08  • 11 min read
Where to invest in 2018?
SINGAPORE (Dec 25): From the en bloc craze to meteoric spikes in tech stocks, 2017 has been coloured by significant asset price gains. Driven by the rally in blue chips, the Straits Times Index is up 18.5% in the year to Dec 18, a notable improvement from
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.

SINGAPORE (Dec 25): From the en bloc craze to meteoric spikes in tech stocks, 2017 has been coloured by significant asset price gains. Driven by the rally in blue chips, the Straits Times Index is up 18.5% in the year to Dec 18, a notable improvement from its 0.7% dip in 2016. With a recovery in commodity prices seemingly underway and persistent bullish sentiment in spite of geopolitical risks, the past year has been an upbeat one for investors.

Will 2018 bring sunnier skies for locally listed players? The Singapore equity market could deliver about 10% in returns next year with an “earnings recovery story”, says Suresh Tantia, assistant vice-president and investment strategist for Asia-Pacific at Credit Suisse. “In Southeast Asia, Singapore is the only market that offers cyclical exposure to a synchronised global recovery, because we are such an open economy and mostly dependent on exports. After two years of struggle, finally this year the Singapore economy is growing very rapidly.”

In 3Q2017, the Singapore economy grew 5.2% y-o-y — the fastest pace in nearly four years. The Ministry of Trade and Industry is forecasting growth of 3% to 3.5% for 2017. Selena Ling, head of treasury research and strategy at OCBC Bank, says 2017 kicked off with a recovery in manufacturing and electronics. Going forward, she believes the growth should extend to the services sector. “If you look at the Business Expectations surveys, the services sector was lagging for quite a period of time. Finally, in the last quarter or so, it has overtaken manufacturing. That gives us a bit of comfort [that] next year’s growth may be better than this year’s. Among the services, financial services and tourism-related services will be the front runners.”

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
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.