STI poised to maintain year-end target at 4,430
An oversold market breadth sets the market for a potential year-end rally.
The Singapore Times Index is poised to maintain its year-end target of 4,430, underpinned by MAS equity market support measures and attractive forward dividend yield, according to a DBS report.
The report also said that an oversold market breadth sets the market for a potential year-end rally, with small-mid-caps (SMCs) to benefit from further MAS support measures.
“Any positive progress in US-China trade talks before the 10 November deadline could catalyse regional market rallies,” DBS said.
Moreover, an eventful fourth quarter awaits small-mid-cap stocks, with the recent pullback in SMCs presenting an opportunity to add ahead of anticipated Q4 momentum.
“We find value plays beyond simply low-valuation stocks, focusing instead on stocks with value-unlocking potential, quality stocks with low visibility, and those with scope to improve returns through active capital management,” DBS added.
Further, industrial and tech names anticipated to deliver growth rates above the sector average include SIA Eng, SATS, Yangzijiang, and Seatrium.