Singapore stock market still a safe haven despite plunge, says HSBC

High-yielding stocks are extremely cheap.

The past few weeks have been particularly painful for shareholders of SGX-listed companies, with the benchmark Straits Times Index dropping by a whopping 22% year-to-date. Despite the price plunge, analysts at HSBC are still bullish on cheap Singapore equities.

“The recent fall in this low beta, developed market has made valuations very attractive. As investor sentiment appears to be more geared towards developed than emerging markets, we believe Singapore equities should benefit, especially in light of cheap valuations,” HSBC said.

HSBC also added that Singapore offers one of the highest yields in the region, which offers a compelling investment case when coupled with sound fundamentals and cheap valuations.

“Overall, we believe a developed market with cheap valuations, high yield, and positive outlook for major sectors make the Singapore equity market a relative haven,” said HSBC.