Despite the Brexit’s limited economic impact on Singapore, DBS Vickers is warning of a potential contagion scenario, where the Brexit triggers a chain reaction among other EU nations demanding to hold their own referendums breaking up the EU.
EU currently accounts for 12% of Singapore’s non-oil domestic exports and 31% of foreign direct investment, according to the research house.
DBS Vickers warns that the GBP could fall by another 10% to 20% against the USD in a worst case scenario.
Singapore companies that could be affected include City Developments, Ho Bee Land, Frasers Hospitality Trust, Ascott Residence Trust, CDL Hospitality Trusts, HPH Trust.
While ComfortDelgro and SembCorp Industries are also exposed to the UK volatility, DBS Vickers notes the impact would be “marginal”.
Chua expects risk adverse investors to start looking for safe havens and yields, and recommends companies like M1, ARA Asset Management, Sheng Siong, Venture and ST Engineering which have little exposure to Britain, and boast sustainable free cash flow and high payout ratios.
“Interest on SREITs should also see an uptick as the FED is expected to keep rates low for longer,” she adds. DBS Vickers’ stock picks include Frasers Centrepoint Trust, Mapletree Greater China Commercial Trust, Parkway Life REIT, Mapletree Commercial Trust, and Ascendas REIT.
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EU currently accounts for 12% of Singapore’s non-oil domestic exports and 31% of foreign direct investment, according to the research house.
DBS Vickers warns that the GBP could fall by another 10% to 20% against the USD in a worst case scenario.
Singapore companies that could be affected include City Developments, Ho Bee Land, Frasers Hospitality Trust, Ascott Residence Trust, CDL Hospitality Trusts, HPH Trust.
While ComfortDelgro and SembCorp Industries are also exposed to the UK volatility, DBS Vickers notes the impact would be “marginal”.
Chua expects risk adverse investors to start looking for safe havens and yields, and recommends companies like M1, ARA Asset Management, Sheng Siong, Venture and ST Engineering which have little exposure to Britain, and boast sustainable free cash flow and high payout ratios.
“Interest on SREITs should also see an uptick as the FED is expected to keep rates low for longer,” she adds. DBS Vickers’ stock picks include Frasers Centrepoint Trust, Mapletree Greater China Commercial Trust, Parkway Life REIT, Mapletree Commercial Trust, and Ascendas REIT.
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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