Why analysts have high hopes for Singapore NODX growth

Despite 9.7% drop in 4M13.

According to Maybank Kim Eng, data for the forward looking sub-segment of New Exports Orders in Apr 2013 came in at 50.6 (Mar 2013: 51.1) while the readings for New Exports Order for Electronics improved further to 53.1 (Mar 2013: 52.5).

They also expect that NODX numbers will gradually improve in coming quarters supported by the modest improvements seen in the global semiconductor sales in 1Q2013 at +0.9% YoY (source: Semiconductor Industry Association).

Here's more from Maybank Kim Eng:

The contraction in NODX growth tapered in Apr 2013 as it marginally dropped by -1.0% YoY. While the non-electronics expanded by 3.3% YoY, the electronics contracted by -9.0% YoY during the month. From the previous month, NODX fell by -2.2% (Mar 2013: +28.5% YoY) while the seasonally adjusted figure came in at +1.1% (s.a Mar 2013: +8.8%).

The slow start to NODX growth in 2013 was evident as the cumulative growth in the first four months was -9.7% YoY compared to the +4.9% YoY chalked up over the corresponding period last year.