Commentary

Singapore

UOB Kay Hian, June 22

Our recent marketing trips to Taiwan and Malaysia suggest that investors should remain selective in Singapore given the lack of earnings clarity and an uncertain external outlook. The market could range trade and we would look to stock picking to outperform. Our key picks for H2-2016 include Singtel, City Developments, DBS, STE, CD Reit, ART and Bumitama. Mid-cap gems include China Aviation Oil, Innovalues, Neratel and Valuetronics. On our "sell" list are SIA Engineering, StarHub and M1.