DBS, 6 March 2024
Excerpt from DBS report.

• The market correction for the Straits Times Index (STI) is likely over, with technical indicators such as the McClellan Oscillator signaling a short-term inflexion point and 4700 seen as a probable correction low.
• DBS recommends deploying cash to capitalize on recent market weakness, adding positions in Suntec REIT (on value unlocking potential), increasing stakes in STI ETF, City Developments, and SATS.
• Profit-taking is suggested for upstream CPO and defense stocks that have gained over 10% since the start of recent conflict, while rotation opportunities exist in Hong Kong equities, replacing PetroChina with China Eastern Airlines to benefit from lower oil price prospects.
• While global uncertainty persists, Singapore banks and mid-cap S-REITs present attractive risk-reward profiles, with value-unlocking themes in property developers remaining a core investment strategy.
• Key stocks to watch include Lum Chang Creations (with robust order book and margin profile) and Suntec REIT (expected to benefit from a new sponsor and value-unlocking opportunities).

Above is an excerpt from a report by DBS. Clients of DBS can be the first to access the full report from the DBS website: https://www.dbs.com.sg