Wednesday, October 7, 2015

Business outlook

Business outlook: Services sector to shine in bleak 4Q15?

Singapore’s 4Q15 business sentiment dived to its worst level since 1Q13, according to a quarterly survey conducted by Dun & Bradstreet and Singapore Commercial Credit Bureau, with the overall Business Optimism Index at +0.14, versus +14.6 in 3Q15.

Among the sectors surveyed, sentiment in the manufacturing and transport sectors was the most downbeat, while the services and construction sectors were the most optimistic

Dun & Bradstreet suggested that businesses will continue to face tough operating environment through 2015 and companies will remain cautious, holding back expansion plans to pull through the difficult period.

Among the highlighted sectors, Maybank-KE has the following recommendations:
- Services (optimistic)
1) Q&M Dental – Buy with TP of $0.97
2) Cordlife – Buy with TP of $1.53
3) Raffles Medical – Buy with TP of $5.40

- Transportation (pessimistic)
1) SMRT – Sell with TP of $1.10
2) ComfortDelGro – Sell with TP of $2.70

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