REVIEW: The FSSTI shed 4.0% mom in Jun 22 to 3,102.21. For the month, the index
was lifted by a slight gain in the REITS (+0.3% mom) sector but dragged down by losses
in the technology (-7.2% mom), others (-7.2% mom), and finance (-5.6% mom) sectors.
Singapore’s industrial production expanded 13.8% yoy (10.9% mom seasonally adjusted)
in May 22, beating market expectations for a weaker growth of 5.5% yoy Excluding
biomedical manufacturing, industrial production rose 18.0% yoy.
Electronics output soared 33.6% yoy as the semiconductor industry expanded 45.7% yoy
due to continued strong demand from 5G markets and data centres, amid the global
semiconductor shortage. As Singapore’s international borders fully reopens, transport
engineering cluster grew 12.9% yoy, backed by the aerospace segment which grew
27.2% yoy as demand for aircraft parts and maintenance grew.
STRATEGY: Some of our top large-cap picks are Keppel Corp, ThaiBev, Venture Corp,
Yangzijiang Shipbuilding, ComfortDelgro and Ascott REIT. As for the small/mid-cap
sector, our top picks are AEM, Frencken and mm2 Asia.
