Wired Weekly
Singapore Traders Spectrum Wired Weekly Refer to important disclosures at the end of this report DBS Group Research . Equity 27 Feb 2017 KEY POINTS Straits Times Index FTSE Small Cap Index STI – Short-term outlook turning choppy from 3,200 ST Index 410 FTSE Small Cap Index • 3050 to 3150, firm support at 3000 3,100 400 3,000 Good newsflow on M&As and privatisations– Our • 2,900 picks are Courts Asia, PACC Offshore, Mermaid 390 2,800 Maritime, CSE Global and Sinostar PEC 2,700 380 2,600 370 Singapore Market Summary 2,500 2,400 360 Signs of a choppy March Feb-16 May-16 Aug-16 Nov-16 Feb-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17 STI’s decline of 20 points last Friday off the 3140 level could well be an early warning of a choppy March. Our STI and 12-mth forward PE Brent Crude Oil 3,800 US$/barrel 65 Brent Crude Oil technical view remains for the current year-to-date rally to 3,600 +1SD @ 15.2x 60 3,400 come to a pause around the 3150 level. We peg a short- 55 3,200 Avg @ 13.6x 50 term range from 3050 to 3150 with firm support at 3000, 3,000 45 2,800 which coincides closely with the current 13.26x (-0.25SD) -1SD @ 12.1x 40 2,600 12-month forward PE. 35 2,400 30 - 2SD @ 10.6x 2,200 25 The uncertainties over a possible rate hike in March and Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17 the French elections in April has offset optimism that the Source: Datastream, DBS Bank Singapore economy is turning for the better, and support for the April-May ex-dividend period.
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