This year's general elections will see a record 2.2 million Singaporeans go to the polls and analysts are predicting share price reactions based on various result scenarios.
Analysts say the market impact will be neutral should the PAP see a clean sweep at the polls.
However, analysts expect a knee jerk reaction to the STI if the PAP wins by a lower majority compared to the last election.
In this case, they believe that the STI may start trading lower on Monday, but a rebound is expected later in the week.
Kenneth Ng, Head, Singapore Research, CIMB, said: "I would say that the market has already factored losing some seats, perhaps at least one GRC, given how the STI has actually underperformed regional markets since Tuesday."
Analysts say that political stability is a major factor that pulls foreign investors to Singapore.
Singapore's opposition parties are contesting a record number of 82 out of 87 parliamentary seats in this year's elections.
But most analysts also do not expect the opposition to pull any major upset.
Terence Wong, Co-Head of Research, DMG & Partners, said: "I think for foreign investors to really see a big flight out, the PAP would have to lose many seats, or the vote share would have to go towards the 50 per cent level which I think - would be very improbable."
Still some say they have been seeing positive returns for the past four elections after the PAP has been returned to power.
Terence Wong said: "We've done a study - we look at the last 4 elections from 1991 to 2006 - and we realised that there is a positive returns if you were to buy on the day that the parliament gets dissolved and sell on the day after polling."
Analysts are bearish on residential property and telecommunications stocks post elections, while their top picks are banks and offshore and marine companies.
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