Broker: DBS
Date of Report: March 2024 (inferred from context)
Excerpt from DBS report.
Report Summary
- Persistent tensions in the Middle East and uncertainty over the US Federal Reserve’s outlook are keeping Singapore’s STI index rangebound, with volatility expected to continue between 4700 and 5100 points.
- Singapore is outperforming regional markets due to its safe haven status, strong public finances, and resilience of major index components like banks and SingTel amid geopolitical uncertainty and inflation risks.
- Agri-commodity stocks are seen as more resilient to higher oil prices, while rate-sensitive REITs are likely to stay flat until clearer signals of Fed easing appear.
- Regional airlines face risks from ongoing Middle East airspace disruptions and emerging jet fuel shortages, but Singapore Airlines and Cathay Pacific are relatively well-positioned compared to peers.
- A recent attack on Iran’s largest gas field adds to conflict escalation risks, potentially increasing energy market volatility and triggering emergency rationing in the region.
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.
