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Editorial Desk Singapore
Editorial Desk | 18 January 2013
By: Xavier Lim
Articles (51) Profile

Shares of property developers fell more than 4 percent on 14 Jan-13 after the government announced its seventh round of property cooling measures in over three years. Many analysts are now expecting transaction volume and prices to drop more than 20 percent and 5 percent respectively this year. Turn to page 12 to read more about the latest set of property cooling measures.

At the same time, banks are also affected by the new measures which are likely to add pressure on loan growth. However, Goldman Sachs said that stricter mortgage servicing ratio and lower loan-to-value will help to keep check on asset quality of mortgages for the local banks. Fitch Ratings also pointed out that the new measures will further improve the banks’ credit profile.

Meanwhile, global stock markets maintained a defensive stance with a mixed bag of economic data reports. Although most of the political uncertainties in the US and China are over, some daunting issues and problems such as the US debt ceiling, which could be breached sometime next month and the ongoing Eurozone debt crisis remain. Having said that, growth in Asia is likely to be stronger than in 2012 with China’s economy growth expected to pick up due to recovery in consumer and investment spending.

This issue, we will be unveiling our hand-picked favourites in the second-part of our stock picks feature. We favour companies whose earnings are largely derived outside of Singapore but within Asia. Particularly, we expect that the Chinese government’s efforts to spur growth are likely to increase domestic spending and boost the retail sector. We also believe that high energy demand and oil prices that led to increased activity in the exploration and production sector will benefit the offshore support players. Flip no more to our cover story from page 6.

If you have missed the last issue where four market experts, Professor Chan, Gabriel Gan, Willie Tan Yi Li and Collin Seow, have shared their views on the market outlook this year in our special feature, do log on to our website, to read about it.

Happy investing!

Armed with an arsenal of investment knowledge, Xavier is the Senior Research Editor at Shares Investment.

Please click here for more information about this author.

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