• n  The general consensus is that a domestic lockdown is unlikely for now. The FSSTI had declined c.6% over the week, after news of Omicron Covid-19 variant broke. We sense that in the very short term, market momentum is likely to lose steam.
  • n  The period ahead calls for selective stock-picking, in our view, rather than over-hyping the gloom. We want to play the bounce in market and also look for outperformers in a sell-down market.
  • n  Anchor themes: 1) oversold reopening stocks; 2) survivor of the fittest against inflation; 3) earnings growth; and 4) value picks. Our base case end-CY22F FSSTI target now stands at 3,506 (-0.5 s.d. of its 10-year mean), as emergence of more virus variants could throw spanners into the works.