Singapore stock picks:
OCBC and UOB continue to offer solid dividend cover (1.67x and 1.98x respectively) despite recent share price volatility. While analysts have turned cautious on banks, their commitment to paying out at least 50% of net profits and their strong capital positions make them attractive in a stormy macro climate.
Singapore Technologies Engineering has emerged as a standout performer in the Straits Times Index (STI) this year, even though its dividend yield is modest and gearing elevated. Nonetheless, investors seeking stability tend to favor quality stocks like those on the STI.
SGX: F34 (Wilmar International Ltd)
SGX: VC2 (Olam Group Ltd)
Legitimate commodity trading firms like Glencore, Wilmar International, and Olam Group continue to play a vital role in global supply chains. These companies—akin to DHL or FedEx for raw materials—benefit from price volatility and tariff disruptions, especially during escalating trade tensions like those driven by Donald Trump’s tariff war.
While commodity prices, as tracked by the Goldman Sachs Commodity Index (GSCI), have fallen 37% from their peak, traders with global reach and logistics capability have adapted by rerouting supply chains and profiting from arbitrage opportunities.
Shares of Wilmar and Olam have seen valuation pressure, trading at a quarter of their 2011 peaks. However, Wilmar’s 5% dividend yield and Olam’s 7% offer compelling opportunities amid the turmoil. As history shows, periods of market chaos often favour seasoned commodity traders. One nickel scandal won’t change that.
HSBC Global Research highlighted regional utilities including Sembcorp Industries, CLP Holdings, CK Infrastructure, China Yangtze Power, China Longyuan Power, and Hanwha Solutions as “shelters” from tariff-related risks, citing stable cash flows and long-term power contracts.
UOB Kay Hian also highlighted Singapore-focused counters like Centurion Corp, ComfortDelGro, Hong Leong Asia, Pan-United, PropNex, SIA Engineering, and Raffles Medical. REITs such as CDL Hospitality Trust, Far East Hospitality Trust, Frasers Centrepoint Trust, Keppel REIT, Lendlease REIT, and Parkway Life REIT are also seen as more resilient.
Raffles Medical Group was upgraded to “buy” by RHB Bank Singapore, with a target price hike to $1.08, citing earnings resilience and gradual EBITDA breakeven in China. KGI Securities echoed the bullish view, citing improved dividend policy and a planned share buyback of up to 100 million shares.
IHH Healthcare, dual-listed in Singapore and Malaysia, saw limited downside during the tariff-induced volatility, underscoring investor preference for defensive healthcare plays.
DBS recommends investors rotate into defensive stocks, including REITs like Mapletree Industrial Trust, Keppel REIT, and Parkway Life REIT; consumer staples like DFI Retail Group and Sheng Siong; communications players like Singtel and NetLink NBN Trust; utilities like Sembcorp Industries; and public transport and tech plays such as ComfortDelGro, UMS Holdings, and Grand Venture Technology.
DBS and UOBKH both flagged cyclical and export-exposed stocks to avoid during the trade war, including DBS, UOB, OCBC, Mapletree Logistics Trust, Daiwa House Logistics Trust, Venture Corp, Aztech Global, Genting Singapore, Delfi, Thai Beverage, Seatrium, and Singapore Airlines.
China / Hong Kong stock picks:
According to CGS International, investors should lean into domestic-focused Chinese sectors, highlighting Tencent, Trip.com, China Merchants Bank, and Link REIT for their stable dividends (5–6%). In contrast, Lenovo, BYD Electronic, and SMIC may face pressure due to US exposure.
Gold-linked stocks such as Zhaojin Mining and Zijin Mining are also seen as safe havens during heightened geopolitical risk.
US stock pick:
HSBC analysts Stephen Bursey, Abhishek Shukla, and Govinder Kumar recommend AI-focused software companies as safe havens. While hardware has been in the spotlight, HSBC sees underappreciated value in software, particularly with AI integration driving future growth.
They highlight the recurring revenue models, economic resilience, and embedded AI potential of Salesforce, Microsoft, Oracle, and ServiceNow, issuing “buy” ratings on all four.
NYSE: CRM (Salesforce Inc.)
Salesforce is forecast to accelerate its EPS CAGR to 19.1% by FY2027–FY2029, up from 10.5% in FY2026, fueled by its AI-based Agentforce platform. HSBC projects revenue growth to hit 15% from FY2027 onward and sees room for operating margin expansion toward 40%.
🎯 Target Price: US$411
📈 Upside: 55% (from US$265.17 as of Apr 10)
NYSE: ORCL (Oracle Corp.)
Oracle’s Cloud Infrastructure is gaining momentum with a 65% revenue CAGR forecast from 2024–2027, thanks to its second-mover advantage in AI infrastructure. Oracle’s ERP suite adoption by clients like Starbucks and Cisco adds to its growth story.
🎯 Target Price: US$246
📈 Upside: 76.4% (from US$139.69 as of Apr 10)
NYSE: NOW (ServiceNow Inc.)
ServiceNow leads in enterprise AI with offerings like NowAssist Pro Plus, monetized via a usage-based model. HSBC expects operating margins to grow to 34.7% by end-2027, up from 29.6%, as it scales across IT workflows.
🎯 Target Price: US$1,265
📈 Upside: 53.1% (from US$825.95 as of Apr 10)
With S&P 500 and Nasdaq Composite rebounding sharply post-Trump’s 90-day tariff pause, HSBC believes these AI-driven software leaders offer both defensive protection and secular upside, making them ideal picks in a volatile economic climate.
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