Singapore-listed firms are likely to see more earnings upgrades than downgrades in the second half of this year, as company results are set to improve with the city-state's economic growth expected to recover towards 2014, Citi said.
First-quarter results still showed more misses than beats, but Citi expected the situation to improve in the second half, with large positive revisions expected in industrials, consumer staples and consumer discretionary segments in 2014.
“Within our coverage universe, flat aggregate EPS (earnings per share) trends this year are expected to grow into 8% aggregate EPS growth in 2014,” Citi said in a report.
“Investors are now likely to look for clues amongst the large caps that point towards the pace of earnings recovery later in 2013 as well as those that can possibly eke out higher dividends.”
It favoured stocks with less domestic exposure, including Keppel Corporation, Wilmar International and Hongkong Land Holdings.
Among the stocks it dislikes are are SMRT Corporation, Singapore Press Holdings, Singapore Airlines, Singapore Exchange and Cosco Corporation.
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