Dull domestic market gets a leg up from Chinese bull run

Here are some stocks to watch out for.

Singapore’s dull stock market should get a boost from the continued strength in the Chinese and Hong Kong markets, according to DBS Vickers.

DBS noted that S-chips and stocks with significant China exposure will benefit from the rally, particularly as the PE differential between Singapore and HK equity markets has narrowed substantially.

DBS prefers stocks with steady earnings and limited downside risks such as China Merchant and Yangzijiang.

It also favors property stocks riding on easier monetary policy fuelling price recovery in major Chinese cities, such as Yanlord, Mapletree Greater China Commercial Trust, Capitaland, Global Logistic Trust, and Fraser Centrepoint Ltd.

Investors should also keep an eye out for sectors which would benefit from China reforms, such China Everbright. Midas will also benefit from the push for infrastructure growth.