Which companies will win big from SG’s easing of restrictions?
SG stocks gained 4% to 5% following the relaxation.
The easing of restrictions has proven to be a gain for Singapore stocks following a 4% to 5% lift, but five companies enjoyed this win more than anyone else.
In a report, OCBC Investment Research said Singapore Airlines, SIA Engineering, SATS, ComfortDelGro Corporation, and Genting will be the key beneficiaries of the slew of relaxations imposed by the government.
Following the announcement of the relaxation, stocks of the aforementioned companies rose 4.25% to $5.40, 4.48% to $2.33, 5.04% to $4.17, 4.23% to $1.48, and 3.77% to $0.825, respectively.
“Singapore’s eventual re-opening will give the much-needed lift to hospitality and tourism-related stocks. While a strong re-rating of these sectors will take some time until clearer data shows a strong return of tourists to the island, the travel relaxation is a strong indication that the outlook is improving for these sectors as the COVID-19 situation stabilises in Singapore,” the analysts said.
While Singapore stocks felt a breeze following the relaxation, OCBC Investment Research said the road ahead will likely remain bumpy given the “global factors such as the continuing crisis in Ukraine, inflation, supply disruptions and Covid-19 remain.”