The Singapore market is the “place to be” for investors according to Credit Suisse. This is due to it trading at favourable valuations, offers a mixture of cyclical exposure and is a beneficiary of higher interest rates.
Currently, the Singapore market has a 12-month forward P/E ratio of 12.4 times which is below the 10-year average of 13.3 times, thanks to the recent pullback.
In addition, the bank is maintaining its positive outlook on the SGD and forecasts the USD/SGD at 1.31 over the next 12 months, supported mainly by prosperous economic growth.
Following this, it also awaits a strengthening of the EUR could work in the favour of SGD, due to the positive correlation seen between the USD Index and the USD/SGD.
According to sources, Credit Suisse has turned positive on Singapore equities, changing the market to overweight on expectations that it will continue to outperform Asian equities.