So with the growth here, easily beating China’s, what are brokers recommending?
Credit Suisse says the the key beneficiaries are SPH, SIA, CapitaLand, FCT (Frasers Centrepoint Trust), Raffles Medical, and the banks.
It notes that Hi-P, ST Engineering, ComfortDelgro, Cosco Corp, SATS, Hong Leong Asia and SMRT are wage-sensitive and not in a strong position to pass on the costs immediately include . This is nice way of saying to avoid or sell these stocks.
CIMB believes the hospitality, airline and Reit sectors will surprise on the upside, while potential disappointments could come from plantation companies. But then CIMB has always been bullish about hospitality, airline and Reit sectors largely because of the casino effect on tourism.