Laggards hold potential for gains next year

Business | 20 Nov 2020 9:07 pm

Stocks that lagged behind this year are expected to be the driving force of next year's market gains with returns in mid-double digits an investment bank predicts.

UBS said it prefers Asia-Pacific markets, especially Southeast Asia, Singapore, and Japan.

In terms of sectors, Eva Lee, Head of Hong Kong Equities, UBS Global Wealth Management CIO, believes that cyclical technology stocks are attractive, such as the semiconductor industry, since demand has increased due to 5G rollout.

The mainland’s 14th Five-Year Plan supports semiconductor companies.

UBS is also optimistic about advertising and payment industries, as online and physical advertising is expected to rebound next year.

Lee predicts high single-digit growth in the MSCI Hong Kong Index next year.

Yifan Hu, Regional CIO and Chief China Economist, UBS Global Wealth Management, expects China’s economy to grow by 2.1 percent this year and by 7.8 percent next year.

The global economy would grow by 3.9 percent next year.


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