Brokers' take

Singapore market

OCBC Investment Research, June 21

AS book makers slashed the odds of a Brexit scenario from a high of 44 per cent to 31 per cent after the tragic death of a United Kingdom (UK) lawmaker, markets went into a risk-on mode with global equities rallying firmly yesterday. The STI Index put in a strong performance on Monday - closing up 1.36 per cent at 2,800.9 - while Asian markets in Hong Kong, Shanghai and Japan similarly closed up. While our base case is for a non-Brexit scenario, we emphasise that the result of the Brexit referendum remains uncertain and market jitters may yet trigger volatility before the referendum on June 23. This being so, we advocate that investors remain cautious on companies with significant UK exposure. Companies with significant UK exposure include City Developments, Ascott Residence Trust, Keppel DC Reit and CDL Hospitality Trusts, while ComfortDelGro could also be adversely affected by a Brexit scenario.