The team also points out that Sembcorp Marine is now in a “much stronger financial position” given its $1.5 billion capital raise, allowing it to take advantage of a potential upswing in the offshore construction sector.
Meanwhile, for BRC Asia, the team says the company is a proxy to the Singapore economy’s continued reopening and should benefit from the government’s infrastructure spending.
On the flip side, the team has opted to remove its short-term tactical call to short DBS and OCBC. “Our call to short financials worked well with DBS declining 5.3% m-o-m and OCBC falling by 6.9% m-o-m as Sea’s re-weighting within the MSCI Singapore index took place at the end of November,” the team explains.
The team has also taken out Sea and iFast, citing a lack of share price catalysts in the near team.
The alpha picks portfolio outperformed the Straits Times Index (STI) in November as markets were affected by news about the new omicron variant. The portfolio declined 4.1% m-o-m, compared to the 4.9% drop in the STI.
“Only Lendlease REIT had a positive return within our portfolio, with Sea (-16.2% m-o-m) and ComfortDelGro (-12.2%) exhibiting the highest share price declines,” the team says.
Photo: Bloomberg
