DBS Research and UOBKH eye Singtel, Venture as top picks for June

[SINGAPORE] DBS Group Research added telecom giant Singtel to its blue chip selection category, it said in a note on Wednesday (Jun 3).

This comes after the counter’s recent 18 per cent pullback from its March peak, which the brokerage sees as an “opportunity to add”.

DBS cited upcoming tariff hikes in India, and an anticipated near-term prospectus filing for its telecom unit Jio as a key catalyst, and added 8,800 Singtel shares at S$4.34 apiece.

Aside from the new blue-chip entry, DBS also moved to lift its exposure in its other picks for June.

Yangzijiang Maritime was positioned as a preferred pick in the shipping sector, with DBS increasing its stake by 10,000 shares at S$0.60 per share following recent contract wins for newbuild projects that enhance earnings visibility.

“A check with our analyst suggests the recent price decline is likely due to broader market correction rather than company specific (reasons). We see the recent 16 per cent pullback from S$0.715 high as an opportunity to add,” DBS said.

The brokerage also raised its exposure in Sats by 2,800 shares at S$3.37 apiece, with the “reassuring” Q4 results that overcame US-Iran war disruptions, DBS said.

It also bought 700 more iFast and City Developments Ltd (C DL) shares each, at S$8.77 and S$8.07 a piece, respectively.

“News of China regulators launching a crackdown on offshore brokers Futu Holdings, UP Fintech and Longbridge Securities over unauthorised cross-border securities trading is potentially positive for compliant wealth-management platforms, such as iFast,” DBS said.

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CDL maintained a value-unlock pick, amid the return of Kwek Leng Peck as vice-chairman and non-executive director from Jun 1 and the group’s ongoing strategic review.

Meanwhile, exposure was reduced for NTT DC Reit and UMS Integration.

Suntec Reit was removed from its dividend selection category.

“While we are positive on Suntec Reit from a six-month perspective for its potential value unlocking strategies, rising inflation expectation on the back of elevated oil prices could tamper near-term gains for the stock,” the brokerage said.

UOBKH picks up Venture, Riverstone

Meanwhile, brokerage UOB Kay Hian (UOBKH) also updated its monthly alpha pick list, adding tech heavyweight Venture Corporation and medical glove manufacturer Riverstone Holdings to its 14-stock portfolio, based on its strategy report published on Wednesday.

The additions come as the brokerage’s Alpha Picks portfolio outpaced the benchmark Straits Times Index (STI) in May, returning 3.3 per cent on a price-weighted basis and 4.3 per cent on a market capitalisation-weighted basis, compared to the index’s 2.5 per cent gain.

However, on an equal-weighted basis, the portfolio returned 1.9 per cent, lagging STI’s gain.

The research house made Venture Corp a top pick on early signs of an artificial intelligence-driven revenue recovery cycle through 2026.

Analysts also highlighted the group’s “fortress balance sheet” boasting a net cash position of over S$1 billion, alongside an attractive 5 per cent dividend yield.

Riverstone was introduced after it was upgraded to a “buy” rating.

The brokerage noted that supply tightness driven by geopolitical tensions has pushed up raw material costs. Yet, “management noted customer demand was stronger than expected in Q1 2026,” UOBKH said.

“Customers prioritising supply reliability over prices are allowing Riverstone to pass through higher average selling prices, supporting gross margin recovery,” the analysts said.

Within its broader list, UOBKH also maintained its positive stance on several outperforming names.

Hong Leong Asia emerged as a top gainer, up 17.9 per cent month on month in May on the back of its S$90.7 million cash acquisition of architectural building products supplier Yong Tai Loong.

Meanwhile, Valuetronics rose 14.7 per cent, re-rating on its industrial mix shift and strong balance sheet.

Beng Kuang Marine advanced 10.3 per cent on progress regarding its Asian Sealand Offshore and Marine consolidation.

Apart from those, UOHKH also named CDL, Keppel , Huationg Global , Oiltek , Food Empire , Ultragreen.ai , OCBC , NTT DC Reit and China Aviation Oil as part of its June alpha picks.

No existing counters were removed from the list.