Our retail research team has created 3 stock lists, namely Growth, Value and Yield.
|The Growth List comprises of small-mid capitalisation companies with business catalysts which will potentially grow their earnings in the near future. The Growth portfolio would be suitable for investors looking for higher returns and are willing to tolerate the risk of higher short-term volatility of stock prices.|
|The Value List focuses on companies which are undervalued based on their share prices as compared to the company fundamentals. It would be suitable for conservative investors who prefer price stability and have a longer investment horizon.|
|The Yield List comprises of stocks that provide consistent dividend pay-out. It would be suitable for investors whose primary focus is to gain regular dividend income from their investments.|
December Market Overview
The Singapore market took a turn for the worse in Dec, with the STI slipping 1.6% amid uncertainties over slowing global economic growth, US-China trade dispute, Fed tightening cycle and collapsing oil prices.
Ytd, the STI slumped 9.8% and suffered a total loss of 6.5%, including dividends. On an equal weighted basis, the average decline of STI constituents was 9.9% (Nov: -8.8%), with only 8 out of 30 stocks generating positive returns.
Against this backdrop, Market Insight’s Growth, Value, Yield (GVY) basket of stocks extended its loss by 1.7ppt in Dec to yield an average ytd loss of 4.8%. Nonetheless, it still managed to outperform the STI by 5.1ppt.
The overall performance was mainly dragged by two stocks, APAC Realty (-55.3%) and Asian Pay TV (-60.4%), which were hit by property curbs and dividend cut respectively. Otherwise, the portfolio would have turned in a marginal loss of 0.7%.
For 2019, all positions will be reset to prices as at 31 Dec ’18.
Growth List -2.2% YTD
The Growth portfolio stayed in the red for the whole of 4Q18 as investors switched to defensive names. While technology and healthcare counters remain under pressure, this was partly offset by the recovery in China Sunsine after its 3Q18 earnings smashed estimates.
As part of our year-end portfolio rebalancing, we are removing Singapore Medical Group from the Growth basket on concerns that start-up costs of its new clinics could dampen the group’s bottom line, while execution risks cannot be ruled out as management plans to venture into new geographies such as Malaysia and Indonesia.
Value List -3.8% YTD
The Value portfolio dipped slightly m/m on weaker share price performance from Genting Singapore and SIA Engineering. The latter was added to our basket as we view its recent share price correction has more than adequately priced in growth concerns arising from structural changes in aviation MRO industry. With the counter now trading at its nine-year low, any further downside should be supported by its decent 5.3% dividend yield.
Meanwhile, we are removing Boustead S’pore from the Value basket on softer core operational performance arising from higher fixed overheads as well as an adverse swing in associate/JV contributions. That said, the stock has done relatively well on virtue that 49% of its market cap is fully backed by net cash.
Yield List -9.3% YTD
Overall, the Dec performance was relatively stable except for some pullback in StarHub (with competition building up due to the impending entry of TPG in 1Q19) and Manulife US REIT (on concerns over sustainability of its US tax structure) although the US office landlord has clarified that the UA and Barbados tax changes are unlikely to affect its tax status.
Note: * Including dividends
** Priced in USD
This document is not research material and it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. This document does not necessarily represent the views of every function within Maybank Kim Eng Securities.
This document is being distributed for general information only and it does not constitute an offer, recommendation or solicitation to enter into any transaction or adopt any hedging, trading or investment strategy, in relation to any securities or other financial instruments. This document is for general evaluation only, it does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.
Opinions, projections and estimates are solely those of Maybank Kim Eng Securities at the date of this document and subject to change without notice. Past performance is not indicative of future results and no representation or warranty is made regarding future performance. Any forecast contained herein as to likely future movements in rates or prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in rates or prices or actual future events or occurrences (as the case may be).
Maybank Kim Eng Securities makes no representation or warranty of any kind, express, implied or statutory regarding, but not limited to, the accuracy of this document or the completeness of any information contained or referred to in this document. This document is distributed on the express understanding that, whilst the information in it is believed to be reliable, it has not been independently verified by us. Maybank Kim Eng Securities accepts no liability and will not be liable for any loss or damage arising directly or indirectly (including special, incidental or consequential loss or damage) from your use of this document, howsoever arising, and including any loss, damage or expense arising from, but not limited to, any defect, error, imperfection, fault, mistake or inaccuracy with this document, its contents or associated services, or due to any unavailability of the document or any part thereof or any contents.
Maybank Kim Eng Securities, and/or a connected company, may at any time, to the extent permitted by applicable law and/or regulation, be long or short any securities, currencies or financial instruments referred to on this document or have a material interest in any such securities or related investment, or may be the only market maker in relation to such investments, or provide, or have provided advice, investment banking or other services, to issuers of such investments. Accordingly, Maybank Kim Eng Securities, its affiliates and/or subsidiaries may have a conflict of interest that could affect the objectivity of this document. This document must not be forwarded or otherwise made available to any other person without the express written consent of Maybank Kim Eng Securities.
On iPhone and Android
Step 1: Log in to KE Trade Mobile
Step 2: Select "Market Insight"
Step 3: Choose from four markets and search for your stock
Step 1: Log in to KE Trade Mobile
Step 2: Go to "Market Insight"
On Web Browser
Step 1: Log in to www.ketrade.com.sg on your web browser
Step 2: Go to your Watchlists, 4Site and QuickTrade pages
Step 3: Right click the stock you wish to find out more about and select "Market Insight"
Get the latest research insights on your iPad with Market Insight! Now you can not only trade on the move, but also stay updated on the move.
1. In-depth regional and local coverage
- Read reports on companies, sectors, economics and strategies.
- View research call consensus charts and find out about Maybank Kim Eng's buy-sell-hold calls.
- 11 markets are covered - Singapore, Hong Kong, Malaysia, Philippines, Thailand, Indonesia, Korea, Vietnam, India, United States and Taiwan.
2. Model portfolio
- Get trading ideas by viewing model portfolios formed using characteristics like growth, yield and value.
- Find out the latest news and market talk on a particular counter by clicking it in the model portfolio.
3. Customisable content
- Bookmark only the research coverage that you need under "My Picks".
Accessing Market Insight on iPad
Step 1: Download KE Trade for iPad or search "Maybank KE Trade SG" in the iTunes App store using your iPad
Step 2: Open the app and sign in with your Username and Password
Step 3: Click on the "Market Insight" tab