'Recession-proof' stocks soar but doubts persist

Singapore

WHAT makes a stock "recession proof"? It depends on who you ask. Some analysts might say consumer staples, telcos and transport companies qualify because food, communication and daily travel will always be needed no matter what the state of the economy is, others may say Reits because of their dividend yields.

Yet other analysts may point to gold-linked companies or healthcare firms, while there also are those who say no sector can be considered completely recession-proof.

Notwithstanding the differing views and despite the weak economy, the market has been rewarding some "recession proof" counters this year - the question being for how much longer.

Among food stocks, supermarket operator Sheng Siong stands out - for the week ended Aug 26, it recorded the biggest jump in volume among actively traded stocks with seven million shares traded on average a day, compared to 2.4 million …