Cyclical stocks to lead earnings recovery when vaccines roll out

Republic's stock valuations have fallen behind regional and global peers, 'but appear poised to narrow the gap in 2021'

Published Thu, Nov 19, 2020 · 09:50 PM

Singapore

TECH-heavy markets that rallied during the pandemic will soon give way to sectors that stand to gain from the potential cyclical recovery once vaccines roll out, said analysts.

In a recent media teleconference, Tan Min Lan, Asia-Pacific head of UBS's chief investment office said vaccines, which UBS expects to be rolled out by the second quarter of next year, will enable corporate earnings across most of the major regions globally to recover.

This comes as UBS economists forecast a 7 to 7.5 per cent gross domestic growth for Asia ex-Japan in 2021 (from minus 2.1 per cent in 2020), with a cyclical rebound powering consumption and lifting economies back to thei…