Singapore retail sector kept at ‘neutral’ by OCBC, picks Sheng Siong, Thai Bev
In this article (5)
OCBC reiterates its “neutral” stance on Singapore’s retail sector, but says opportunities exist in companies that are able to weather the current gloomy sentiment.
The house notes that the year has started on a bleak note with volatile stock markets and a World Bank report flagging continued fears over developing economies, especially China.
Singapore reported stronger fourth quarter growth, but the economy logged its lowest pace of growth in six years in 2015.
OCBC believes its “picks in the sector exemplify stability and are able to ride out the gloomy sentiment.”
OCBC has “buy” recommendations on Sheng Siong Group, QAF and Thai Beverage.
Questions & Answers
Q.Why has OCBC maintained a 'neutral' stance on Singapore's retail sector?
Why has OCBC maintained a 'neutral' stance on Singapore's retail sector?
OCBC has kept a 'neutral' stance because the year started with volatile stock markets and fears over developing economies, alongside Singapore's economy logging its lowest growth pace in six years in 2015.
Q.Which specific companies does OCBC recommend for purchase within the retail sector?
Which specific companies does OCBC recommend for purchase within the retail sector?
OCBC has issued 'buy' recommendations for three companies: Sheng Siong Group, QAF, and Thai Beverage.
Q.What is the basis for OCBC's selection of these particular companies?
What is the basis for OCBC's selection of these particular companies?
OCBC believes these selected companies exemplify stability and are well-positioned to navigate the prevailing gloomy sentiment in the market.
Q.How did Singapore's economic growth perform in 2015?
How did Singapore's economic growth perform in 2015?
While Singapore reported stronger fourth quarter growth, the economy recorded its lowest overall growth rate in six years for the entirety of 2015.
Reader pulse
Are OCBC's retail picks solid?
19,569 votes so far