Citigroup: Raise the target of the Singapore Straits Times Index for the second half of the year from 4,200 points to 4,400 points.

Citigroup research team report states that the upward trend of the benchmark stock index in Singapore, the Straits Times Index, may be constrained by the country's central bank lowering the slope of the exchange rate policy band in the second half of the year. With increasing fund inflows due to currency appreciation, lowering the slope of the policy band may tighten these fund flows. The prolonged period of low interest rates in Singapore is expected to weigh on the financial sector, which is a significant sector in the benchmark index. Citigroup has raised its target for the second half of the year for the Straits Times Index from 4,200 points to 4,400 points, citing optimism about the measures taken by the Monetary Authority of Singapore to inject liquidity.