Singapore equities to remain range-bound in near future: Bank of Singapore
- POSTED: 03 Jul 2014 23:36
The Bank of Singapore says that it expects Singapore equities to remain range-bound for the short term, but expects dividend plays to continue to attract interest.
SINGAPORE: Singapore equities will remain range-bound for the short term, but dividend plays will continue to attract interest, said the Bank of Singapore on Thursday (July 3).
"I think there are certain interesting themes in the Singapore market, and one of which is you know, there are many opportunities in the dividend yielding sector, 'REITs', some of those Temasek-linked companies do give you a very nice yield in the context of a very low yielding environment in the world," said Chief Investment Officer Hou Wey Fook.
The bank says that the impact of a slowing Chinese economy on Singapore's growth will likely be offset by the pick-up in the developed economies. This combined with the steady performance of emerging economies will deliver the best global economic outlook in 2014, since three years ago.
The Bank of Singapore says it prefers equities to fixed income due to falling bond yields and soaring stock market indices. It also expects the improving growth momentum to spur companies into increasing their capital expenditure and M&A activities.