REVIEW: The FSSTI inched 0.2% lower mom in Feb 22 to 3,242.24. For the month, the
index was lifted mainly by the Shipyard (+6.4% mom), Plantation (+4.3% mom) and Land
Transport (+3.7% mom) sectors, but was offset by the Healthcare (-9.4%), Finance (-3.5%
mom) and Technology (-0.4% mom) sectors.
Singapore’s manufacturing Purchasing Managers’ Index (PMI) reported by SIPMM
declined by 0.4ppt to 50.2 in Feb 22. This marks the 20th straight month where PMI is
above the expansionary 50.0 mark. Likewise, the electronic PMI registered a fall of 0.3ppt
to post a slower rate of expansion at 50.5.
The marginal fall in January’s PMI reading, despite being in expansionary territory, was
attributed to slower expansion rates in new orders, new exports, factory output and
employment. Nonetheless, indexes of supplier deliveries and input prices posted faster
expansion rates.
UOB economists’ view that Singapore’s manufacturing sector is one of the key economic
support pillars remains unchanged. For 2022, we expect full-year manufacturing to grow
by an average of 4.0%, underpinned by the buoyant global trade activity expected for the
year ahead.
STRATEGY: Our top large-cap picks are Yangzijiang, Thai Beverage, SingTel, Frasers
Centerpoint Trust and Ascendas REIT. As for the small/mid-cap sector, our top picks are
Aztech, BRC Asia and Civmec.