Although the People’s Action Party (PAP) has returned with a stronger mandate in Singapore, Credit Suisse observes domestic catalysts still remain “limited”.
A low economic growth and higher wage cost environment presents downside risk to consensus Singapore earnings growth estimates of 7% for 2016, it highlights.
Credit Suisse is “most cautious” on domestic-driven stocks such as CCT, Suntec REIT and SMRT, but expects these companies will accelerate their “internationalisation drive”.
It says PAP’s return to power will likely see key policies maintained.
“We do not expect a sharp reversal of these policies following the elections,” says Credit Suisse in a note dated September 14.
It adds the government may have more opportunities to engage in structural reforms and resist pressure to raise social spending further.
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A low economic growth and higher wage cost environment presents downside risk to consensus Singapore earnings growth estimates of 7% for 2016, it highlights.
Credit Suisse is “most cautious” on domestic-driven stocks such as CCT, Suntec REIT and SMRT, but expects these companies will accelerate their “internationalisation drive”.
It says PAP’s return to power will likely see key policies maintained.
“We do not expect a sharp reversal of these policies following the elections,” says Credit Suisse in a note dated September 14.
It adds the government may have more opportunities to engage in structural reforms and resist pressure to raise social spending further.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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