It’s not all doom and gloom for struggling Singapore small-caps

Smaller players can still outperform the market.

Although Singapore stocks were hammered in the first two trading weeks of 2016, analysts at DBS Vickers are still convinced that a few select small-capitalisation companies can manage to outperform the market this year.

DBS' small-cap strategy hinges on three themes: growth, prospective yield, and recovery. DBS favours stocks which have clear drivers and catalysts, such foolproof expansion plans, potential forex gains, anticipated price rebounds and attractive dividend yields.

“Small-cap names can often shine despite uncertainty and malaise in the broader market,” DBS said.

DBS’ conviction picks are film production company mm2 Asia, glove maker Riverstone Holdings, agribusiness player Japfa, grocery operator Sheng Siong, and conglomerate China Merchants Holdings.