Today’s Focus
STI – Limited near-term downside at c.3000 given
attractive valuation below -0.5SD forward PE
Swiber wins 5 contracts totaling USD235mil
US markets were moderately lower in the past 2 trading
sessions as most Asian markets were closed on Friday for the
Lunar New Year holiday. The Dow was lower by a net 40pts
since Thursday. Concerns about emerging markets currency
volatility continued after the FED trimmed its monthly bond
purchases by USD10bil to USD65bil.
Amid the latest currency turmoil that befalls some emerging
markets, Singapore continues to be a safe haven given its
strong current account surplus position, stable SGD and low
political risk. For the STI, we do not see much downside in the
near term as the index current trades below its 13.1x (-0.5SD)
12-mth forward PE level at 3050 that is seen as an attractive
level. Any downside below this level in the near-term is likely
temporary and we expect it to hold around the 3000 level.
Swiber has clinched 5 contracts that totalled USD235mil. 3 of
these contract wins, which amounted to approximately
USD145mil, were awarded to the Group for works that will
be executed in Latin America and Southeast Asia. The
remaining 2 contract wins, which aggregated to
approximately USD90mil, were awarded to Swiber’s associate
company and JV company that are for services that will be
executed in Southeast Asia.
Corporate results season continues this week with Ascendas
Hospitality Trust, SIA and Starhub scheduled to report.
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