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Thoughts on Week Ahead 13 Feb 2023: Analysts Recommendation Revision, next market driver?

 


Thoughts on Week Ahead:
Week 13 Feb 23

Analysts Recommendation Revision, next market driver?

Market Recap
Markets experienced a volatile week,  S&P500 -1.11%, HSI -2.17%, due to uncertainty surrounding US FED interest rate policy. Dollar Index +0.57% spiked, causing a sell-off in some markets. Despite the selloffs and news headlines, market expectations for Fed fund futures remained at 5.25% for 2023.

Outlook for the Week Ahead
Volatility is expected to persist, particularly in HK and China. Meanwhile, US and SG markets are likely to experience sideways trading. DBS' results on Monday could set the direction for STI.

Analysts could revise their target prices and ratings, following a year of downgrades, as China reopening is expected to have a ripple effect on more industries and markets.

Weekly Investment Strategy
We see recent market correction as an opportunity to pick up quality names in the market. As long as markets do not breach key support levels, we are using this sell-off as a buying opportunity.

Following is link to stocks' Year to date performance for SG,HK and US markets. Overall investors seems picking up tech, travel related and consumer discretionary sectors. Likely rational, valuations becomes more reasonable and China reopen theme.

https://docs.google.com/spreadsheets/d/1ND3f5ZZyph6O_tM9sTaT4hI8ukTpoqdu/edit?usp=sharing&ouid=101538497175344321065&rtpof=true&sd=true

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