STI likely to trade sideways: analyst

UOB KayHian expects STI to hit 3,240 at year-end.

Analysts from UOB KayHian have moderated its Straits Times Index (STI) target to 3,240 amidst the potential economic headwinds and contraction of global trade.

“We believe that the Singapore market will largely trade sideways as Singapore’s open economy will highly likely be impacted by the contraction in global trade,” UOB KayHian said.

“Thus, despite the prevalence of quality, value and dividend stocks relative to its regional peers, and despite the STI’s defensive nature, we do not anticipate that the index can outperform on an absolute basis in 2H23,” the experts added.

Amongst the headwinds that the Singapore market will likely face in 2H23 include contracting good exports.