Daily Markets Briefing: STI down 0.17%

Find out who the biggest losers were.

According to KGI Fraser, last Friday, the STI traded mixed. The losers included Ascendas REIT and CapitaLand Mall Trust, as they retreated 2.5% and 1.3% respectively post-ECB decision that underwhelmed the markets.

On the other hand, Sembcorp Industries gained 2.0% as the stock rebounded from new lows, while investors switched out from the battered Sembcorp Marine, KGI Fraser said.

Here’s more from KGI Fraser:

The US markets posted broad-based strong gains following good payrolls data. With an increased confidence of a Dec-15 rate hike announcement, we note that the financial sector (+2.7%) led the gains, and we think that the Singapore banking sector may similarly benefit.

Amongst the sector, we prefer OCBC (S$8.74; unch; BUY TP: S$10.00) and DBS (S$16.58; -0.2%; BUY TP: S$20.38).

The energy sector was the only loser as OPEC maintained production figures, triggering a selloff in oil and oil-related stocks. This may provide no respite to the Singapore oil & gas sector, as we note Ezion (S$0.605; +2.5%; SELL TP: S$0.47) and Nam Cheong (S$0.137; unch; SELL TP: S$0.10) still trade above our fair TP.