Julius Baer official says equities have become more attractive again, and now is the time to cobble together an ‘equity shopping list’
SINGAPORE shares rallied with their regional peers on Tuesday (Aug 13), as Yangzijiang Shipbuilding led gains on the Straits Times Index.
The counter climbed 14.7 per cent or S$0.35 to S$2.73. The company had earlier posted a 77 per cent rise in H1 profit to 3.1 billion yuan (S$553.7 million) as its revenue grew 15 per cent to 13 billion yuan.
In a research note on Aug 13, DBS analyst Ho Pei Hwa remained bullish on the shipbuilder on the grounds of its record-high order backlog, which will boost earnings visibility through to 2026.
She added: “Yangzijiang’s improving corporate governance and pivot towards cleaner vessels such as dual-fuel container ships and gas carriers, which now account for about 70 per cent of order book, could draw more interest from ESG funds.”
The STI gained 0.7 per cent or 23.19 points to 3,258.57. Across the broader market, gainers beat losers 347 to 179 after a billion securities worth S$1.3 billion changed hands.
The trio of local banks were also mostly in the black. OCBC closed flat at S$13.83, UOB gained 0.2 per cent or S$0.07 to S$29.36, and DBS rose 0.4 per cent or S$0.14 to S$34.12.
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At the bottom of the table was Keppel, which shed 2.5 per cent or S$0.15 to S$5.80.
Regional markets were also in the black on Tuesday. Japan’s Nikkei 225 Index gained 3.5 per cent, Hong Kong’s Hang Seng Index rose 0.4 per cent, and South Korea’s Kospi Composite Index edged up 0.1 per cent.
Julius Baer head of equity strategy research Mathieu Racheter said that equities have become more attractive again, noting that corporates have continued to deliver strong Q2 earnings.
He added that it is a good time for investors to start putting together an “equity shopping list”.
