Positive trend for stocks expected in 2010
UBS, Credit Suisse, and Citigroup forecast further gains for Singapore stocks in 2010 due to earnings estimates. The country's Straits Times Index is expected to rise to approximately 3,180 by the end of next year.
Pegged at 14 percent, the foreseen increase is backed by continued upgrades in earnings estimates, according to Credit Suisse Group AG and UBS AG in a report by Bloomberg. As of 3:41 p.m. on 2 December 2009, the index was at 2,786.03.
UBS expects the index to reach 3,200 by 2010 year-end, while Citigroup Inc. expects the gauge to climb to 3,250 by June of next year but may stall afterwards due to probable unwinding of the government's stimulus measures.
"The Straits Times Index will likely rise in early 2010, driven by a synchronized global recovery, inventory restocking and continued stimulus," Citigroup analyst Chua Hak Bin said in a note dated 30 November.
Meanwhile Credit Suisse said it is “overweight” on transport, banking, media and property stocks. "Consensus earnings upgrades have helped trigger share price performance in 2009," said Credit Suisse analyst Sean Quek in a note dated 1 December 2009. "We expect this trend to continue into 2010 on a more positive top-line and margins outlook," he added.
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