Question 1

The FDA in the U.S. has just announced that it is in the final stage of approving a vaccine for final stage trials before starting production of a vaccine for Covid-19. Given this positive news, the expected U-shape recovery in global economies, is now projected to assume a V-shape recovery. The IMF now projects a 5.5 percent growth rate worldwide for 2021 and 3.6 percent for 2022.

Choose a bank or REIT listed on the Singapore Stock Exchange (SGX) to carry out your investment analysis, apply your analysis to the most likely impact of such a scenario for the sector that your chosen company belongs to.

Question 2

Following your answer in Question 1, appraise the impact of the expected economic recovery (a) On the fundamentals of the chosen company; (b) By determining the intrinsic value using a dividend discount model. (c) By carrying out a relative valuation using at least two (2) companies listed on the SGX.

Question 3

You are required to carry out transactions for the stock in Question 2. For the execution you will examine the use of technical analysis to determine the trend of your selected company and to determine suitable entry and exit pricing levels. (Use two (2) suitable technical indicators)

Question 4

From the information gathered, design and develop a short recommendation summary page on the stock in Question 2, using the reference:

BUY TRADING BUY Share price may exceed 10% over the next 12 months Share price may exceed 15% over the next 3 months, however longer- term outlook remains uncertain Share price may fall within the range of +/- 10% over the next 12 months Share price may fall by more than 10% over the next 12 months NEUTRAL SELL BUY TRADING BUY Share price may exceed 10% over the next 12 months Share price may exceed 15% over the next 3 months, however longer- term outlook remains uncertain Share price may fall within the range of +/- 10% over the next 12 months Share price may fall by more than 10% over the next 12 months NEUTRAL SELL