Maybank

Analysts warn of Singapore experiencing “one of the strongest contractions in the region” due to its open and trade-driven economy

“Fears of a worst-case scenario seem to have overshot lockdown reality, with less earnings misses and higher earnings per share (EPS) upgrades in 2Q20. Progressive ramp up of regional economic activity in 2H20 has potential to strengthen these trends."

With semiconductor equipment manufacturing slated to expand in Asia, manufacturing company UMS Holdings is poised to capture strong mounting momentum in the coming quarter.

Provisions will stay high across Singapore’s banks as they face net interest margin (NIM) compression and see non-performing loans rise amid low interest rates, say analysts. The reports come as the three banks posted declines in earnings for 2Q2020.

Maybank Kim Eng has kept its “buy” rating, while DBS Group Research has maintained its “hold” recommendation.

ARA LOGOS Logistics Trust has emerged relatively unscathed from the Covid-19 outbreak and subsequent lockdown measures, as strong demand for logistics assets pushes up Singapore occupancy, note analysts after the release of the company’s 1H2020 results.

The effect of regional lockdowns and economic downgrades are expected to surface among Singapore banks with significant drops in interest rates driving negative pressure on net interest margins (NIMs).

It has been more than 20 years since Singapore liberalised its financial sector. In the past five years, the focus has been on financial services going digital as part of a Smart Nation initiative. Last year, the Monetary Authority of

Malaysia has placed a moratorium on loans to help firms cope with Covid-19, but this could only serve to delay a debt and impaired loan crisis

(Feb 21): The shares of more than 60% of local banks are currently trading below book value, a plight last seen in 1997 and 2008.