STRATEGY: The Singapore market has performed extremely well ytd, with its valuations remaining inexpensive both regionally and globally. Although the Asian region faces a more bumpy recovery post COVID-19, we believe the STI has tailwinds from Singapore’s robust GDP growth and positive sentiment from the re-opening. We continue to like financials, selected re-opening plays, and COVID-19-resilient sectors among others.

Our end-21 target for the STI has been upgraded slightly to 3,456 from 3,450 previously, implying an upside of 10.3% from 30 Jun 21’s closing. Our top large-cap picks are OCBC, SGX, ComfortDelGro, Frasers Centerpoint Trust and Ascendas REIT. As for the small/mid-cap sector, our top picks are UMS, InnoTek and Hong Leong Asia.