sector outlook

OCBC wary of residential sector's near-term outlook in spite of encouraging data

SINGAPORE (Mar 18): OCBC Investment Research is maintaining “neutral” on Singapore’s residential sector despite the recent recovery in Singapore developers’ stock prices and the announcement of a new Cross Island MRT line, which helped to boost Feb m-o-m private home sales volumes by 4.4%.

The research house’s preferred sector picks remain UOL Group and CapitaLand, which are both rated “buy” with fair value estimates of $8.45 and $3.98, respectively.

Venture Corp the safest bet amid tech sector volatility, says Maybank

SINGAPORE (Jan 8): Maybank Kim Eng remains “neutral” on Singapore’s technology sector while lowering its target prices across the relevant stocks under its coverage.

This comes after the research house cut its earnings forecasts to factor in heightened macro uncertainties, as well as higher cost of equity due to increased volatility within the sector.

Few bright spots in sight for local residential sector in near term, says OCBC

SINGAPORE (Jan 3): OCBC Investment Research is maintaining “neutral” on the local residential sector after Singapore home prices posted their first decline in six quarters, according to recent Urban Redevelopment Authority (URA) flash estimates.

The research house continues to project a private residential price growth range of -3% to +2% for 2019, while also maintaining its forecast for 10,000 to 12,000 private sales transactions.

The largest SGX tech stocks going into 2019

SINGAPORE (Dec 26): The technology sector in Singapore is deemed to be highly cyclical and with the recent increase in global demand for electronic products and services, along with new entrants within the sector, competition has been heating up.

However, the competition within the sector has an economic impact of weighing both prices and margins.

Furthermore, the recent US-China trade dispute have also affected the technology sector’s supply and value chains, especially when the US announced that it would impose tariffs on industrially significant technology.

Construction to benefit from improving demand & shorter cash cycles this year: CIMB

SINGAPORE (Apr 10): CIMB is maintaining “overweight” on Singapore’s construction sector while remaining upbeat on its outlook for 2018.

In particular, the research house prefers specialist civil engineering firms that have established track records for their niche expertise – including its preferred sector pick Yongnam Holdings, which has been rated “add” with a target price of 57 cents.

See: Expected contract wins keep Yongnam at 'add'

Tech and telco sector to boom as deals peak: Baker McKenzie

SINGAPORE (Mar 15): Deal activity in the technology and telecommunications sector is likely to increase in 2018, driven by a more positive global economic outlook, the expansion of technology across industries, investment from emerging markets, and strong corporate balance sheets, according to global law firm Baker McKenzie.

Although the global deal activity was slow across all sectors in 2017, it is anticipated that the easing policy concerns in US and EU, reasonable GDP growth across all regions, and accommodative fiscal policy will help boost deal activities this year.

Positive outlook keeps Singapore’s tech manufacturing services sector ‘overweight’

SINGAPORE (July 5): CIMB is keeping its “overweight” rating on Singapore’s tech manufacturing services sector as it remains positive on most of the industry’s stocks under its coverage.

In a Wednesday report, analyst William Tng individually assesses selected stocks from the eight counters covered by CIMB, as he argues that they come from three diverse sub-industries within the sector: semiconductor, plastic injection moulding and printed circuit board (PCB) drilling space.

Singapore REIT sector kept at ‘overweight’ with business parks first to recover

From Google Drive

SINGAPORE (June 23): CIMB is maintaining its “overweight” call on Singapore’s REIT sector, supported by a flattening yield curve and abating supply pressures in 2018.

In a Friday report, analyst Yeo Zhi Bin is positive on business parks and believes that it would be the first sub-asset class to post recovery gains this year.

“We project occupancy to increase to 88.5% by end-17F (1Q17: 84%) and 92.4% by end-18F. We believe that rents would start to strengthen when island-wide occupancy meets the 90% mark,” says Yeo.

Singapore’s manufacturing sector anticipates weaker business outlook ahead

SINGAPORE (Jan 31): A mere net weighted balance of 2% of firms in Singapore’s manufacturing sector expect a favourable business situation for 1H17 compared to 4Q16.

According to a Tuesday release by the Singapore Economic Development Board (EDB), the majority of manufacturing firms in Singapore (a weighted 76%) surveyed are anticipating business from Jan – June 2017 to remain similar to a quarter ago.

While 13% of manufacturers think overall business conditions could improve over the same period, 11% foresee the situation worsening on the contrary.

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