Singapore market set for 2021 recovery; safety measures a new normal for firms that can reopen

Government fiscal support, ample liquidity can prevent market from sinking to previous crisis levels: CGS-CIMB report

Published Wed, May 20, 2020 · 09:50 PM

Singapore

EVEN as the gradual easing of circuit breaker measures see delayed reopening for some sectors, government stimulus, ample liquidity and investor willingness to look beyond 2020 could prevent the Singapore market from sinking to previous crisis levels, according to a CGS-CIMB report.

CGS-CIMB expects the Straits Times Index stocks' earnings per share to decline around 22 per cent for FY20 and grow 10 per cent in FY21, faring better than during the Asian financial crisis or the global financial crisis (GFC) where earnings per share fell 28 per cent year on year.