Goldman upgrades Singapore market, expects 7% return

Singapore

A YEAR after it downgraded the Singapore market to "underweight" due to concerns over the energy and property sectors in Singapore, investment bank Goldman Sachs has upgraded the market back to "market weight" with a 12-month Straits Times Index (STI) target of 3,100 points.

The bank's chief Asia-Pacific equity strategist, Timothy Moe, said valuations have come down significantly and bad news has been priced in, including in the decimated oil and gas sector. "There's no way we think Singapore is an 'overweight', to be clear," Mr Moe said in a media briefing on Thursday evening.