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PhillipCapital replaces Singtel with Sembcorp in latest quarterly portfolio

The Edge Singapore
The Edge Singapore • 1 min read
PhillipCapital replaces Singtel with Sembcorp in latest quarterly portfolio
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The PhillipCapital research team has replaced Singapore Telecommunications with Sembcorp Industries in its latest quarterly "Absolute 10" portfolio, on the premise that the latter's pending $4.8 billion acquisition of Alinta Energy will drive earnings growth ahead.

"Gas trading operations will benefit from the rise in LNG prices. Potential listing of India’s renewable energy portfolio is another positive catalyst," says PhillipCapital.

In his March 2 report on Sembcorp Industries, Paul Chew, who leads the research team, has an "accumulate" call and $7 target price on this counter.

On the other hand, given higher inflation and weaker macro conditions ahead, consumption of telco services in emerging markets may be impacted, warns PhillipCapital. Singtel owns significant stakes in leading mobile operators of India, Indonesia, Thailand and the Phillipines.

Besides Sembcorp, the new addition, the other nine counters maintained in the portfolio by Chew's team for the current 2Q 2026 are: DBS Group Holdings, Oversea-Chinese Banking Corp; Stoneweg Europe Trust, Frencken Group, Geo Energy Resources, Prime US REIT, Wee Hur Holdings, City Developments and Keppel.

Sembcorp shares, as at 2.18 pm, was up 0.74% to $6.80; Singtel was up 0.8% to $5.03.

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