Top SGX Stocks To Watch Out For In 2021
The investment landscape had a rough couple of months due to the pandemic which affected many companies, consequently marking one of the worst years ever for the stock market. The vaccine rollout and economic recovery measures are already setting up 2020 to be a potentially great year for investors as stocks recover. There is still a lot of uncertainty, thus the need to focus on stock picks with the highest growth potential.
Fortunately, a bit of analysis provides some insights into the potential direction of the markets. For example, U.S President elect Joe Biden is preparing a fiscal stimulus plan worth US$ 1.9 trillion which will provide unemployment support and maintain purchasing power as the economy recovers. The announcement boosted the outlook for Asian financial markets including that of Singapore. Such measures may go a long way in providing a strong economic buffer that will also support the stock market.
Here are some of the SGX stocks that Singapore investors should look out for.
Oversea-Chinese Banking Corp. Limited (SGX: O39)
OCBC is one of the major banks listed on the SGX and one of the best performing stocks in Singapore. The banking industry was one of the worst-hit industries by the global pandemic and the impact reflected on OCBC share price which fell from mid-February prices above 11 SGD to a low of 7.81 SGD on March 23, 2020. It also happens to be the stock’s lowest price during the year. However, the stock price enjoyed notable recovery in Q4 2020 during which it rallied back above 10 SGD thanks to economic reopening.
The global economy is still recovering from the pandemic and city state is expected to continue seeing economic uptrends, which mean that the bank has a lot of revenue growth and stock price growth potential.
United Overseas Bank Ltd (SGX: U11)
UOB is an international bank that has its headquarters in Singapore. Looking at UOB stock price especially in the past year reveals that it was also significantly affected by the pandemic. The stock price fell from north of 25 SGD in mid-February 2020 to the year’s low at 17.53 in March 23. However, it experienced a notable spike which saw the price rally from sub-20 SGD at the start of November 2020 and it has remained above 20 SGD arguably courtesy of the economic recovery. The country’s economy is still in recovery mode, meaning that there is a lot of potential growth to be had especially in the banking sector. Such banks also have operations in some of the leading economies such as China which are poised to deliver strong growth numbers. UOB should thus be on the savvy trader’s watchlist.
Singapore Airlines Ltd. (SGX: C6L)
The airline industries was one of the economic most affected by the pandemic and lockdown measures. The situation reflected on SIA share price performance in 2020 which plummeted from above 6 SGD in mid-February just as the news of the pandemic started trickling in. The stock price was as low as 3.31 SGD by August 3, which was also its lowest price point for the year. The stock price has recovered above 4 SGD in 2021 and it is expected to continue rallying as normalcy returns and travel resumes fully, once the vaccine is widely available.
Genting Singapore Ltd (SGX: G13)
It is one of the big fish in the hospitality industry, another sector whose performance was heavily subdued by the lockdown measures. Genting Singapore share price traded at around 0.89 SGD in mid-February last year, but the pandemic news sent the price crashing to its yearly low at 0.51 SGD by March 19. The stock price has so far recovered to its pre-COVID levels but the fact that the industry is still not operating at full capacity means there is a lot of room for improvement.
Keppel Corporation Limited (SGX: BN4)
Non-essential segments such as the infrastructure industry had to halt their operations or at least significantly reduce their activities in 2020, thus negatively affecting the industry’s performance. Keppel is among the companies that took a big hit. The Keppel stock price fell from pre-COVID levels above 6.7 SGD towards the end of February 2020 to a low of 4.93 SGD in march. It further plummeted to the year’s low of 4.10 SGD in September but it has since then been recovering. It still has some potential upside before reaching pre-coronavirus levels.
CapitaLand Limited (SGX: C31)
It is one of the best stocks in the real estate industry. During the pandemic, the CapitaLand share price dipped from above 3.74 SGD in February to a low of 2.57 in March and the yearly low of 2.51 SGD. Fortunately, the stock closed the year on a recovery trend and it is poised to continue leveraging continued growth in 2021 courtesy of economic recovery and its diverse portfolio in real estate.
Comfortdelgro Corporation Ltd (SGX: C52)
The lockdown and stay-at-home measures implemented in 2020 meant that people could not travel and thus land transport companies such as Comfortdelgro were severely affected. Fortunately, things seem to be getting back to normal, meaning that there are opportunities for recovery and growth. The Comfortdelgro stock price dropped from a high of 2.24 SGD in February last year, prior to the pandemic to a yearly low of 1.33 in June. The stock has so far gained some ground but it is still underperforming, which means that it might have a lot of upside potential as things improve.
SembCorp Industries Limited (SGX: U96)
Sembcorp’s business took a hit in 2020 especially during the huge oil crash that took place in March and April. The company provides engineering services, especially providing solutions for offshore oil drilling activities. However, things have kicked off on a good note in 2021 with oil demand slowly getting back to normal, which means that the company’s services will also be in demand. Sembcorp Industries share price traded at 1.79 SGD at the time of this press, which is significantly lower than its 12-month high of 2.24 SGD. The stock may experience an uptick as soon as demand is back to normal levels.