Singapore Stock Market News

UnMasking Asia: Singapore - The Growth Conundrum

StockFanatic
Publish date: Thu, 10 Sep 2015, 11:56 AM
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Singapore faces the conundrum of low perceived valuation that however may not be paired with quality, as our stress tests suggest. Inexpensive valuations can easily turn expensive when forecasts are stressed. Strong capacity to pay dividends is lessened when cashflows are stressed. The four big sectors - offshore & marine, property, REITs and banks - are all under pressure and our test results suggest that their biggest challenges could still lie ahead as rising interest rates, falling oil prices and depreciating currencies collide with declining pricing power and sluggish demand. Certain highly-geared O&M players face consolidation while property developers could face cashflow constraints. Even defensives such as telcos have to contend with rising costs posed by an appreciating USD. Lastly, our stress-testing of banks indicates a scenario that looks bad for profitability and dividends, but may still not have gone far enough if systemic risks are added in.
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LanSeeBoy

What crab was that !? Spore mkt still not cheap and seriously lack market breadth. Big blues side (handful), mkt are pitched by small caps with limited quality. Liquidity largely driven by remisiers' trading....Nam Cheong is a Msian outfit !...u sure it will not suffer along with their O&M peers !?

2015-09-10 14:22

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