
What stocks should cautious investors pick in 2015?
The STI’s gains were feeble this year.
Investors should learn to live in an environment of uncertainty in 2015, as a soft global economic outlook will generate doubts for corporate earnings and growth outlook.
According to OCBC, Singapore’s STI gains of 4% year-to-date look feeble in comparison to the >20% gains for several key markets in the region.
“Global economic growth in 2015 is decent, although not exciting. Against this , we expect equity investors to have a renewed focus on fundamentals and the quality and sustainability of earnings. The latter will continue to be a key driver for stock price outperformance. For 2015, our stock picks comprise mainly well-positioned quality stocks with good track records quality stocks with good track records. The list includes CapitaMall Trust, ComfortDelgro, DBS, Frasers Centrepoint Trust (FCT), Hotel Properties, Keppel Corp, Keppel Land, Sheng Siong, Starhill Global Trust, Singapore Post, SingTel and Wheelock,” noted OCBC.