SINGAPORE (June 28): UOB KayHian sees value in Singtel, City Developments, CapitaLand Commercial Trust, OCBC, Keppel Corp and Wing Tai within its universe of stocks which have corrected more than 15% from the 52-week high.
Since its high of 3,615 in early May, the benchmark Straits Times Index has retraced close to 10%. Amplifying the volatility, has been external noise over the US-China trade spat as well as rising interest rates. Market risk premium (MRP) from May 2 till June 27 implies a 81bp rise in MRP to 5.17% during this period, above the long-term mean of 5.0% since 2005..
In UOB’s view, the rise was due to a shift in interest rate hike expectations since the Federal Open Market Committee (FOMC) meeting on 13 June and external concerns over the US/China trade spat, which would have implications on global growth.
