Despite a slow performance of 2017 The Singapore economy is expected to grow near to 2.5 marks in 2018 supported by an expected good growth in service and housing sector. The volatility created in the market over the US Tex reforms in recent times had affected the local investors but on the quarter basis, the growth figure has not suffered much with these sentimental shifts.
The Straight Time Index which represents the overall situation of Singapore equity market is showing its strength in recent times when it attempts to reach to the 3500 levels but the market experienced rejection near this level, however, the bullish trend which STI is following for a long time is still intact.
According to the forecast, we had provided in the previous blog post the Straight Time Index had crossed the level of 3360 and had tested 3470 levels near to the forecast level of 3490 and returned back near to the level of 3380 supported by the cyclic movement in the market on December month.
In this blog, we had shortlisted few very valuable stocks you can invest in 2018. We had shortlisted all the stocks on the basis of fundamental and technical analysis and these stock have a very good potential to perform well in the coming year and continue to give constant return to the investors.
Best World International Ltd
Best world international limited is one of leading Singapore based nutritional supplement, healthcare and personal care product manufacturer and seller in south-east Asia, with a market capitalization of 709.61MM SGD. With an extraordinary return on equity near to 50.54, this stock is a must have in a long-term investment portfolio.
In line with our previous analysis forecast we still keep Best World International Ltd in the portfolio on the back of strong fundamental support along with technical analysis where charts are showing that despite the recent price drop the stock is still sustaining above the long-term bullish trend line and it is expected give good return in the coming year.
Yangzijiang Shipbuilding Ltd
Yangzijiang Shipbuilding (Holdings) Ltd. is an investment holding company which is known for its high quality and a wide range of offering in ships manufacturing. Yangzijiang Shipbuilding Ltd headquarter is based in China and it operates its business throughout South East Asia.
Yangzijiang Shipbuilding (Holdings) Ltd is one of the best stock for intraday traders as well as investors in Singapore stock market due to high liquidity and price volatility in the stock which makes it a good choice for intraday trade.
On technical ground the stock had recently started its correction and it is expected to drop to 1.40 levels before it starts its bullish movement again on the back of the fundamental support of constantly improving margins and strong dividend yield which makes this counter a very attractive counter to invest in 2018 however we suggest to wait for a correction in the price and buy this counter when it starts to give positive movement by entering its bullish trend again supported by good financial results.
China Aviation Oil (Singapore) Corporation Ltd
China Aviation Oil (Singapore) Corporation Ltd is an investment holding company which is engaged in the business of petroleum product trading. The company supplies jet fuel to China, Asia Pacific North America, and Europe. It also supplies jet fuel to other airlines companies as well. China Aviation Oil (Singapore) Corporation Ltd operates its business under three major segments including Middle Distillates producing oil Products other than jet fuel, and Investments oil-related assets.
China Aviation Oil (Singapore) Corporation Ltd is one of the biggest companies listed in Singapore exchange who is working under the Oil, Gas and Consumable Fuels segment with a market capitalization of S$1,410.7 mm. The company had shown in past its capabilities to generate a study increasing operating margins in previous which is expected to continue in 2018 as well.
On the technical ground, the stock had taken support near 1.50 levels and it is set to hit the resistance near 1.80 levels once the bulls push the price above this resistance level we can expect a good bullish trend setup in the coming year which makes this stock a very attractive investment option to invest in 2018.
Suntec Real Estate Investment Trust
Suntec Real Estate Investment Trust is Singapore’s largest integrated commercial development company which owns prime office and retail space in Singapore. Suntec Real Estate Investment Trust is one of the few companies in Equity Real Estate Investment Trusts segment which performed continuously well in past years. Suntec Real Estate Investment Trust based on October report Suntech had managed to give an EBITDA of S$ 283.36 mm which is a good figure in this segment of the market, as well as the company, had decent dividend payout ratio as well.
On technical ground the company is a long-term bullish trend and it had taken correction and it is expected to test the level of 2.05 in near-term and then continue to give positive movement after taking support near this level as the financial and technical analysis both are showing strength in the counter with makes it a very good buy for 2018.
Another stock pick form Equity Real Estate Investment Trusts space Mapletree Logistics Trust is a Real Estate Investment Trusts which is primarily focused on providing logistical services in the Asia Pacific. Mapletree Logistics Trust operates its business in Singapore, Malaysia, Hong Kong, Japan, Australia, China, South Korea and Vietnam with a very impressive book value of S$5.5 billion
With a market capitalization, S$ 4,035.2 mm and P/E ratio of 12.60 along with a constant performance in terms of profits Mapletree Logistics Trust is an attractively priced stock in Equity Real Estate Investment Trusts space to invest in 2018.