On the other hand, analysts seem slightly more upbeat about the outlook of the hospitality sector.
Nevertheless, Singapore’s easing of domestic rules to allow for larger work-related events of up to 1,000 people to be held means that more business activities can now resume, he added, while reiterating an “add” call on the stock and noting that a “recovery to pre-COVID operations remains on the table” albeit at a slower pace.
“They haven't been idling. Instead, they have been trying to strengthen their portfolio by incorporating other streams of stable income,” said the research analyst, adding that most hospitality trusts are still trading at about 15 to 20 per cent below pre-pandemic levels. Technology and banking sectors have also “reverted to mean valuations and priced in some of the slower growth expectations”, hence presenting long-term opportunities, they added.
These include banks that are beneficiaries of the current rising interest rate environment, companies that are less affected by inflationary pressures such as the commodity sector, as well as those that can continue to deliver margin expansion such as homegrown telco Singtel or taxi operator ComfortDelGro.
Recession coming leh ..how to shine🤑