UOBKH’s ‘Alpha Picks’ outperform STI in February; Keppel, Singtel added for March - The Business Times

[SINGAPORE] With volatility heightened by geopolitical tensions, UOB Kay Hian (UOBKH) has repositioned its “Alpha Picks” portfolio for March to favour defensive large-caps and yield-accretive plays, the brokerage said on Tuesday (Mar 3).

Despite the volatile backdrop, the brokerage’s portfolio outperformed the benchmark Straits Times Index (STI) in February.

While the STI rose 1.8 per cent month on month, the Alpha Picks portfolio gained 3.9 per cent on an equal-weighted basis and 3 per cent on a price-weighted basis. It slightly underperformed the benchmark only on a market-cap weighted basis.

Sector performance in February was mixed. Industrials rose 17.7 per cent, telecommunications was up 8.9 per cent and healthcare climbed 6.5 per cent, while technology fell 4.4 per cent, finance dropped 1.9 per cent and real estate investment trusts (Reits) were down 1 per cent.

For March, UOBKH added Huationg Global, Keppel and Singtel, citing “near-term share-price catalysts” for the trio.

Conversely, the brokerage removed Lendlease Global Commercial Reit , cutting its loss after the Reit posted weaker first-half results and announced a discounted preferential offering. It also took profit on DFI Retail Group , China Sunsine Chemical and Reclaims Global .

“Heightened volatility appears to be here to stay for the near term,” UOBKH noted, pointing to the S$3.8 billion traded on the Singapore Exchange on Monday following geopolitical escalations involving the US, Israel and Iran.

To ride out the storm, the brokerage said it favours sectors such as aviation, consumer staples, construction, energy and financials.

Here are the 14 stocks in UOBKH’s March Alpha Picks portfolio, all of which have been assigned a “buy” call.

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