- STI was up 5.4% in April led by financials, which now account for around 40% of the index
- The macro highlight of the month was the crossing of the 3% Rubicon by 10-year US Treasuries
- In Singapore, electronic stocks were massively sold down with the main trigger an expected peak in the growth rates of smartphones and consumer products such as e-cigarettes and smart lighting
- The announcement of GDP growth of 4.3% for 1Q18 was a pleasant surprise since this beat the prior quarter’s 3.6% YoY expansion.
- Our bottom-up STI target of 3,900 (8% upside) is left intact. Banks should take the lead in stock-market performance.