Singapore Market To Bottom In Mid-2009 – CIMB

0832 GMT [Dow Jones] CIMB expects STI to break 2008’s low of 1474 next year but says Singapore market should bottom at some point during the year; “Market bottoms are frequently made when the going is at its worst; we expect that point to be reached sometime in mid-2009.” Broker maintains end-09 STI target of 2040, Neutral position on the market. Says favoured sectors for recovery are plantations, financials, offshore & marine. Says deflation will be key theme for Singapore market in 2009, could precipitate severe profit recession in 1H09, add to job cuts; “we are not optimistic on Singapore’s 2009 economic performance.” Remains defensive for 1H09, with top picks including CCT (C61U.SG), ComfortDelgro (C52.SG), M1 (B2F.SG), SembMarine (S51.SG), SGX (S68.SG), SingPost (S08.SG), SPH (T39.SG) and Wilmar (F34.SG). STI down 3.6% at 1729.71. (KIG)