Singapore Stock Market News

How low can the FSSTI go?

StockFanatic
Publish date: Mon, 17 Jun 2013, 10:04 PM
StockFanatic
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The FSSTI has fallen 9% from its mid-May peak. We were positive on the FSSTI for most of 2012 but turned cautious in Dec 2012 prior to our Underweight rating in March 2013. Having given up all its gains YTD, any further fall in the FSSTI will drive a more positive view.

We remain Underweight on Singapore for now, with an unchanged end-2013 FSSTI target of 3,460 (bottom-up). The stocks that have fallen the most in the past month are REITs, developers, STE, DBS, M1, Starhub and Noble. We prefer non-REIT yield stocks, developers and banks to REITs, telcos and commodity stocks. Our top picks are DBS, Thai Bev and UOL. UOL, STE and CAPL look particularly attractive after their respective corrections.
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