SINGAPORE (Nov 30): UBS Global Research does not expect the recent share price rally of Singapore banking stocks to be sustainable.
UBS analyst Aakash Rawat noted that all three banks are trading at 1 time book value and between 10.4 times and 11.1 times their FY16 earnings forecast after investors priced in “an extreme level of pessimism” and the worst of offshore services asset quality blew over.
While Rawat believes the rally was partially justified, here are three reasons why he feels it is unsustainable.
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