Why consumer staples will remain at the forefront of attention in 2017

SINGAPORE (Jan 4): In the opinion of RHB analyst Juliana Cai, consumer discretionary spending in Singapore is likely to continue being weighed down by persistent concerns over job security and stagnant wages – bringing consumer staples to the forefront of attention this year.

“We are more partial towards consumer companies that have consistently invested in productivity improvement… Consumer companies would also continue to face disruptions from the e-commerce trend. We believe spending on staples would be least impacted, with the high personal savings rate in Singapore,” comments Cai in a Tuesday report. 

Food and beverage (F&B) player BreadTalk as well as grocery retailers Dairy Farm and Sheng Siong hence have been named as RHB’s top “buy” picks in the consumer segment with target prices of $1.45, US$8.60 ($12.46) and $1.21 respectively.

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