‘In second half, expect better prospects’
Investors can look forward to better prospects in the 2nd half of this year as analysts say the revival in global economic growth will push equities and high-yielding stocks higher.
In Singapore, analysts are favouring commercial real estate, rig builders and banking sectors. They said investors can also opt for high-dividend stocks such asSuntec Reit, which provides a yield of 4 to 4.5% and Starhub with 6%.
Meanwhile, rising rents for commercial spaces and higher book orders for deep see drills will drive growth for real estate investment trusts and rig builders, Mr Mahendran, managing director and head of investment strategy at HSBC Private Bank said.
The increase in supply for affordable housing over the 5 years will also push demand for cement and steel higher – and is likely drive to the growth of companies with activities in these sectors. He said investors should be tactical in their strategies: "I think you can't afford not to invest because cash has no value. Interest rates are incredibly low, almost zero. So just letting cash lie around is not going to help you because inflation in the meantime is eroding the value of your cash in real terms."
Source : Today Online, 11 Jul 2011
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