OCBC Underweight on Singapore consumer sector

OCBC downgrades its view on Singapore's consumer sector to Underweight "in light of the weaker SG retail sales figures for April and the potential threats to regional consumer spending (ie. macro overhang, government policy changes and greater foreign competition)."

With sales figures likely to showcase unimpressive results for May, it says 2Q13 "could well shape out to be a muted quarter in terms of top-line growth for consumer companies."

OCBC favours counters with defensive qualities such as Sheng Siong, rated Buy with a $0.82 target, or counters with potential M&A activity like Viz Branz, rated Buy with a $0.74 target. Shares are up 0.8% at $0.655 and flat at $0.68, respectively.