SINGAPORE (Dec 18): Nomura says Singapore equities in 2016 may be weighed by concerns of asset quality in banks as banking stocks make up 37% of MSCI Singapore.

It warns that banks will be the “key drag” as loan growth is weak and is likely to remain so.

“Market participants believe that Singapore banks’ exposure to China/ASEAN and to commodities should result in higher credit costs,” Nomura analyst Mixo Das writes in a note on Thursday.

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