Shifting rate cuts expectations and a stronger US dollar are “well-reflected” in the divergent performance of Singapore stocks, say JP Morgan analysts, with banks outperforming REITs by 7% since December 2024.
Banks’ dividend policies and REITs financing cost trends will be closely watched by investors at the ongoing 4QFY2024 results, say Khoi Vu and Rajiv Batra of JP Morgan’s equity macro research team in a Jan 27 note.
The analysts’ top picks among Singapore-listed names are DBS Group Holdings, United Overseas Bank (UOB), Singapore Telecommunications (Singtel), Singapore Technologies Engineering (ST Engineering) and Frasers Centrepoint Trust (FCT).
These names, along with Nasdaq-listed Grab, have earned “overweight” ratings from JP Morgan, though no target prices were shared.
Across sectors, JP Morgan analysts remain “overweight” on Singapore financials and industrials. They remain “neutral” on communication services, consumer staples and consumer discretionary; while keeping their “underweight” rating on real estate.
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Meanwhile, JP Morgan’s least-preferred stocks on the Singapore Exchange are Keppel REIT and Suntec REIT, which have earned “neutral” ratings. In addition, the analysts are “underweight” on Frasers Logistics & Commercial Trust .
Tables: JP Morgan, Bloomberg
