HSBC removed Singapore Telecommunications from its top ten Asian stocks equity portfolio as it cut its rating for Singapore to underweight from overweight.
Valuations in Singapore were less attractive after the recent market run-up, and the lacklusture growth outlook for the two largest sectors - finance and property, HSBC said.
“We see tighter monetary policy, mostly through currency appreciation. Inflation is not coming down and growth is, so far, holding up well so we see no room for rate cuts,” it said.
“Funds have increased their holdings in the last quarter, so we expect additional buying to slow from here onwards,” HSBC said.
It still recommended Sembcorp Marine as it remained bullish about the global offshore and marine outlook on ageing offshore rig fleets that cannot support current and planned exploration and production.
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