For investors reeling after the first annual loss for Singapore stocks in four years, there may be comfort in chili crabs and airline travel.
While the outlook remains bleak for Singapore shares following the second-worst performance among developed markets last year, Alan Richardson of Samsung Asset Management Ltd. is seeing flashes of opportunity. The Hong Kong-based money manager, who shunned Southeast Asia’s largest equity market in 2015, spots potential in companies, such as Singapore Airlines Ltd. ( Valuation: 1.40, Fundamental: 1.65) and Jumbo Group Ltd. ( Valuation: N/A, Fundamental: N/A), the restaurant company that went public in November. Bank Julius Baer & Co., meanwhile, is drawn to real estate investment trusts.
“Singapore growth may be subdued but it’s still growing,” says Richardson, who runs Samsung’s Southeast Asian equity fund that has beaten 97% of its peers over the past five years. “Investors can still find investment opportunities. They just need to avoid the potholes along the way in the oil and gas sector or commodities.”
Richardson is underweight in the broader Singapore equities market due to concerns the collapse in commodities will continue to impact raw-material traders and lenders with exposure to oil explorers and miners. The Straits Times Index tumbled 14% in 2015 amid volatility in China and slumping oil prices.
There are few signs of relief this year, with the benchmark index down 12% as a global equities selloff deepens. Last year’s worst performers are again at the bottom of the heap, with commodities trader Noble Group Ltd. ( Valuation: 1.80, Fundamental: 0.35) and oil-rig builders leading losses. Growth in the city-state is expected to remain below 3% in the next two years.
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
While the outlook remains bleak for Singapore shares following the second-worst performance among developed markets last year, Alan Richardson of Samsung Asset Management Ltd. is seeing flashes of opportunity. The Hong Kong-based money manager, who shunned Southeast Asia’s largest equity market in 2015, spots potential in companies, such as Singapore Airlines Ltd. ( Valuation: 1.40, Fundamental: 1.65) and Jumbo Group Ltd. ( Valuation: N/A, Fundamental: N/A), the restaurant company that went public in November. Bank Julius Baer & Co., meanwhile, is drawn to real estate investment trusts.
“Singapore growth may be subdued but it’s still growing,” says Richardson, who runs Samsung’s Southeast Asian equity fund that has beaten 97% of its peers over the past five years. “Investors can still find investment opportunities. They just need to avoid the potholes along the way in the oil and gas sector or commodities.”
Richardson is underweight in the broader Singapore equities market due to concerns the collapse in commodities will continue to impact raw-material traders and lenders with exposure to oil explorers and miners. The Straits Times Index tumbled 14% in 2015 amid volatility in China and slumping oil prices.
There are few signs of relief this year, with the benchmark index down 12% as a global equities selloff deepens. Last year’s worst performers are again at the bottom of the heap, with commodities trader Noble Group Ltd. ( Valuation: 1.80, Fundamental: 0.35) and oil-rig builders leading losses. Growth in the city-state is expected to remain below 3% in the next two years.
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
0 comments:
Post a Comment