SINGAPORE (Nov 19): Singapore’s corporate earnings and economic growth may be bottoming out as cyclical indicators such as electronics exports show a slower pace of declines, according to Citigroup Inc. analyst Patrick Yau.

Citi’s earnings revision count indicator for Singapore stocks has declined to -50%, bringing it close to the level where it may have reached a trough, Yau wrote in a report on Monday. The city-state’s economic growth is likely to accelerate to 1.7% next year from a projected pace of 0.6% in 2019, he added.

A bottoming in growth expectations and a switch in the trade war narrative would “likely lead us to meaningfully change our stock picks and risk appetite,” Singapore-based Yau wrote.

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