Singapore Stock Market News

UOB KayHian - Market Outlook & Strategy

StockFanatic
Publish date: Mon, 05 Jan 2015, 01:54 PM
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REVIEW:
The FSSTI continued its uptrend in December, rising 0.44% mom to 3,365.15. For the year ended 2014, FSSTI enjoyed a modest rise of 6.2% yoy. Sectors that contributed to the FSSTI's rise include banks (+13% yoy), land transport (+31% yoy), S-REIT (+10% yoy) and telecommunications (+6% yoy). Conversely, sectors that underperformed include aviation (-5% yoy), oil services (-37% yoy) and plantations (-9% yoy).

In terms of corporate earnings, 2014 generally disappointed as market consensus earnings were downgraded throughout the year. Key to this has been a combination of weaker-than-expected top-line growth as well as margin pressure as costs remain elevated.
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