10 stock picks to guide you through a lacklustre 1H17

SINGAPORE (Nov 28): With the Singapore market being dragged down this year by events such as Brexit and the US presidential elections, OCBC Investment Research expects the lacklustre sentiment to continue at least into 1H17 as corporate earnings and economic outlook remain subdued.

A full-blown recession is unlikely for Singapore’s economy, says OCBC analyst Carmen Lee in a Monday report. This is because while the research house thinks overall earnings growth is likely to be in the single-digit range in 2017, it will still fare better than the estimate flat growth for 2016.

Lee is also certain that the latest surge in companies being privatised is a reflection of under-valuation in the market, as premiums of offer prices over last-traded prices ranged from 6-39% excluding Eu Yan Sang.

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