If I could recommend a stock to Mr Warren Buffet, I would wholeheartedly select one from the Singapore stock market which is throwing up a range of interesting buying opportunities with analysts and researchers digging deep into the details of the firms that make up the Straits Times Index. A lot of the optimism comes from hopes that the Singapore economy will be one of the winners as the global economy returns to normal.
In addition, some of the individual firms look well-positioned to outperform the general market. Established blue-chip firms are being tipped for 10% stock price gains, while smaller firms could offer a chance for investors to scale up on risk-return. This review of the most recent price data and ratings will provide a shortlist of some of the best stock picks in Singapore and how to trade them.
One stock that I am going to recommend would be Singapore Airlines. It is still not recovering the way it should from the pickup in its business when the country opens up its door to travellers and at the same time encourage singaporeans to venture out to have fun. Imagine how much potential it will have once it starts to report the earnings.
If he does not like airlines, then hot in the list would be our very own DBS which is a multinational banking and financial services corporation. Its global client base means that if the Singapore economy does get up and running before those of other countries, DBS could make the most of the head start. The firm has weathered the COVID storm relatively well, and the financial sector as a whole would benefit from global interest rate levels rising as that helps improve their profit margins. Often tipped as a good Singapore dividend stock the firm has generated a near 3% yield for investors over the last four years.
The ‘safe pair of hands’ aspects of the business has led to it being overlooked, until now. It’s the highest-rated banking group stock in Asia and its most recent financial reports revealed a strong balance sheet. Analysts at investment banks OCBC, Maybank and CIMB recently raised their target prices by over 10%.
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