UOB Kay Hian’s Alpha Picks portfolio achieved a remarkable performance in July, increasing by 17.7% on an equal-weighted basis and surpassing the Straits Times Index (STI) by 12.4 percentage points. This outperformance was driven by strong gains in small to mid-cap stocks, including iFAST, Frencken, and China Sunsine, which saw monthly increases of 37.3%, 33.9%, and 28.4%, respectively.
The portfolio’s success comes amidst a backdrop of positive economic data from the US and a revitalised local bourse, bolstered by the Monetary Authority of Singapore’s (MAS) S$5 billion equity market development programme. The STI itself rose by 5.3% month-on-month, reflecting renewed investor interest.
In anticipation of MAS’s capital injection, UOB Kay Hian has adjusted its portfolio for August by adding Hong Leong Asia, Marco Polo Marine, and CSE Global, whilst removing iFAST and Sheng Siong Group. Hong Leong Asia is expected to benefit from favourable construction sector trends, Marco Polo Marine from high charter rates, and CSE Global from a robust orderbook.
The analysts at UOB Kay Hian continue to recommend a range of stocks, including PropNex and DFI Retail, both of which have shown strong performance and promising outlooks. PropNex is poised to capitalise on stable transaction volumes in Singapore’s residential markets, whilst DFI Retail has reported robust results, driven by its health and beauty and food divisions.
As the portfolio continues to outperform, UOB Kay Hian remains optimistic about its strategic stock selections and the potential for continued growth in the coming months.
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