Given the uncertain environment, OCBC prefers a stock picking strategy. Here’s its 10 top picks for 2017.
Outlook for 2017
- Not completely out of the woods.
- Banks: low to mid single-digit earnings growth
- Residential Property: soft, no pick-up
- Oil & Gas: refinancing issues, lack of new orders
- Telcos: new player!
- Prefer stock picking strategy.
10 Top Picks from OCBC
- Ascendas REIT: large exposure to business and science parks which has limited supply risks
- CapitaLand: Cheap, upside from China exposure
- Fraser Centrepoint Trust: suburban malls more resilient, good track record, low gearing
- Fraser Logistics & Industrial Trust: Prime assets in Australia, high occupancy rate, diverse tenants and long lease
- Global Logistics Properties: market leader in China where e-commerce boom is set to drive growth
- Keppel DC REIT: key beneficiary of data centre secular growth trends.
- OUE Limited: undervalued high end developer. Benefits if property curbs are eased
- Raffles Medical Group: Newly opened centres (Shaw Centre, Holland Village), Raffles Hospital Extension by 2017, Shanghai hospital.
- Sheng Siong Group: Store closure (Woodlands, Verge) offset by new stores and renovation of older stores.
- Singtel: Regional growth (India, Indonesia, Thailand, Philippines), Cyber-security presence, digital marketing drive.