STI to stay stuck in the doldrums as dreary earnings season rolls in

Results are on a downward slide.

Many Singapore-listed firms are expected to report their first-quarter results in coming weeks, but analysts at DBS Vickers said that earnings reports will do little to boost investor sentiment on the local bourse..

DBS expects the benchmark Straits Times Index (STI) to have limited near-term catalysts, but noted that small and mid cap stocks remain on investors' radar.

"With the 1Q results season having started and corporate earnings still on a downward revision path, we see limited short-term upside ahead," DBS said.

“The stock market’s undercurrent remains firm despite our view that STI has limited near-term upside. We expect near-term pullback in index heavyweights to be moderate with support at 2867. This, coupled with the latest pullback in the SGD that improves the competitiveness of local companies, should continue to underpin interest in the SMC sector,” said the report.