Shares are constantly expanding high; Crude oil leap: Market wrapping


Banks, real estate stocks can be losers in Singapore’s budget

(Bloomberg) – Capital investors expecting a major boost to Singapore’s benchmark index from the upcoming annual budget may be disappointed: heavyweight blue chips are unlikely to benefit from government greatness. The goal is to reverse the nation’s worst economic contraction since independence in 1965 , Tuesday’s budget is set to focus on the pandemic-hit travel sector or companies with mandates in line with green or digital initiatives, analysts say. This is bad news for the benchmark Straits Times Index, which has risen 3.5% so far this year. The meter delays the broader MSCI Asia Pacific index by six percentage points, although Singapore has managed to limit the spread of the virus. “The upcoming budget is unlikely to be a game changer,” said Kee Yan Yeo, an analyst at DBS Group Holdings. Ltd. Government proposals are likely to focus on struggling aviation and tourism sectors or companies looking to expand, digitize or invest in new technologies like 5G, rather than spur real estate and banking growth – which dominates the benchmark, Yeo said. the sectors to be monitored: Tourism The aviation sector is likely to receive more state aid through wage subsidies and cost exemption measures, as Singapore’s borders largely remain closed, according to DBS, Phillip Securities Pte. and Maybank Kim Eng Securities Pte. Singapore currently only allows tourists from a handful of countries such as Australia, China and Taiwan. The Jobs Support Scheme, a wage subsidy plan created last year to mitigate the damage from the coronavirus pandemic, is likely to be maintained, DBS ‘Yeo said. This means that the flag carrier Singapore Airlines Ltd., airline SATS Ltd. and aircraft equipment manufacturer SIA Engineering Co. could win, he added. Job support programs such as wage subsidies could also provide a lifeline to restaurants and other tourist games, said Thilan Wickramasinghe, Maybank’s head of Singapore research. Among stocks to be monitored: restaurant operators No Signboard Holdings Ltd. and Jumbo Group Ltd., casino warehouse Genting Singapore Ltd. and the luxury hotel group Mandarin Oriental International Ltd. No festive bump for restaurants in Singapore over New Year’s Eve ESG and TechCompanies with a sustainability focus or linked to 5G, urban solutions and artificial intelligence should also win at Singapore’s goal of being a green hub and a technology-focused Smart Nation. Watch ST Engineering Ltd., said DBS. Real Estate and BanksCommercial Landlords may no longer benefit from loan agreements and other measures in return for providing assistance to their tenants. They remain vulnerable due to extended work from home and the lack of tourism. See, among others, CapitaLand Ltd., City Developments Ltd. and the Mapletree Commercial Trust. Businesses that benefit from increased Internet consumption during the pandemic, such as data centers, and companies like financial institutions with easy access to finance are also unlikely to receive significant incentives, said Carmen Lee, head of investment research at Oversea-Chinese Banking Corp. RetailDBS and Phillip Securities say an organic pickup in retail reduces the need for continued wage subsidies. Cash deliveries and coupons to households benefiting supermarket operator Sheng Siong Group Ltd. “would be absent from this budget,” said Paul Chew, Phillip Securities’ head of research in Singapore. (Updates market trends in third paragraph.) For more articles like this, visit us at Sign up now to stay ahead of the most trusted business news source. © 2021 Bloomberg LP

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