Top Picks for 2017 by OCBC

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.