UOBKH’s ‘Alpha Picks’ Outperform STI in February; Keppel, Singtel Added for March

Why It Matters

The outperformance validates UOBKH’s active stock‑selection approach and signals investor appetite for defensive Singapore equities during geopolitical turbulence. It also highlights how targeted portfolio adjustments can generate alpha in volatile environments.

Key Takeaways

• Alpha Picks gained 3.9% Feb, beating STI's 1.8%
• New March adds: Huating Global, Keppel, Singtel
• Removed Lendlease REIT, DFI Retail, China Sunsine, Reclaims Global
• Focus on defensive large‑caps, yield‑rich sectors amid volatility
• Keppel's ROE rose to 18.7% with asset‑light strategy

Pulse Analysis

The February market in Singapore was marked by sharp geopolitical tensions that spurred heightened trading volumes and sectoral swings. In that climate, UOB Kay Hian’s Alpha Picks managed to generate nearly double the benchmark return, underscoring the value of a disciplined, equal‑weighted approach that favours quality large‑caps. By sidestepping the more cyclical tech and finance segments that lagged, the portfolio captured gains from industrials, telecoms and healthcare, illustrating how tactical weighting can mitigate broader market noise.

Looking ahead to March, the brokerage’s roster reflects a clear defensive tilt. Huating Global’s robust order book and attractive forward‑PE valuation, Keppel’s strong profit rebound and asset‑light monetisation plan, and Singtel’s asset‑recycling drive all offer tangible near‑term catalysts. Simultaneously, the removal of under‑performing REITs and profit‑taking on recent winners cleanses exposure to sectors vulnerable to interest‑rate pressure and earnings volatility. This reallocation aligns with UOBKH’s stated preference for sectors like aviation, consumer staples, construction, energy and financials, which historically provide steadier cash flows during macro‑uncertainty.

For investors, the Alpha Picks strategy signals that selective exposure to well‑capitalised, dividend‑yielding Singapore stocks can still produce meaningful alpha despite a turbulent backdrop. The emphasis on balance‑sheet strength, earnings visibility and clear catalyst events offers a template for constructing resilient portfolios. As geopolitical risks persist, the focus on defensive, yield‑rich equities may become a broader market theme, encouraging asset managers to prioritize stability and cash generation over pure growth narratives.