The 3Rs that will push SG equities above pre-COVID levels in 2022

These will also narrow SG’s performance gap with other markets in Asia.

Analysts are expecting Singapore equities to surpass pre-COVID levels come 2022 and narrow their performance gap with other markets in Asia.

In its Equity Strategy Outlook, Morgan Stanley said what will drive SG’s equities to this path are 3Rs: reopening, reflation, and reorganisation.


Morgan Stanley said that continuous reopening of business and travel will help sustain Singapore’s above-trend economic growth in 2022 as it will “boost market confidence and drive corporate earnings growth through the year.” 


Singapore’s economy will likewise be driven by “steadily rising interest rates and higher-but-benign inflation” in 2022, according to analysts.

“Relatively early cycle dynamics and a lower starting point suggest more growth runway for equities before over-heating concerns eventually kick in,” Morgan Stanley said.


Morgan Stanley said “rebalancing” of the MCSI Singapore index “towards more tech representation better aligns Singapore with the rest of the world.”

In particular, the analysts said the addition of Sea Ltd., a global consumer internet company, “results in an optically higher P/E multiple for the index.

Sea Ltd's weight in the index is expected to grow around 30% by February 2022,  making it the largest single constituent in the index, according to Morgan Stanley.

Factoring in the higher weighting of Sea Ltd., Morgan Stanley raised the index target for MCSI Singapore to 1,950 which represents a 14% upside potential.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Banks should have enough buffers and find climate transition risks manageable.
The initiative is expected to improve the operating environment for SG businesses.
This includes the upgrade to the latest data acquisition and control system.
A potential incentive fee of up to $18m may be applied. 
This is part of the group’s efforts to spearhead maritime decarbonisation.
This is higher compared to September's retail sales YoY increase at 6.8%.
Restaurants experienced the most YoY decline at 24%. 
Over 40 companies were recognised in the 7th edition of the awards programme.
VTL scheme to proceed “without change” amidst detection of Omicron variant in Korea.
SATS, Sembcorp Industries, and the SGX led the index.
Birth rates in the country have declined since the pandemic began.
It represents a premium to the property’s book value of approximately $20.6m.
The move will be part of the redevelopment of the Central Mall properties.
It also waived its right to walk away from potential material adverse effects.