valuations

Don't let your investing guard down in 2019, says RHB

SINGAPORE (Dec 26): RHB Research is targeting 3,300 for the Straits Times Index (STI) by end-2019 and advises investors to remain defensive amid anticipated volatility in the year ahead – by focusing on buying stocks that offer stable earnings, strong balance sheets and sustainable dividends.

The research house’s caution comes despite inexpensive overall market valuations, in the research house’s view, with the STI trading at 12.7 times its one-year forward P/E at the -1SD band as at the close of Dec 13.

EM housing markets risk financial stress from rate hikes: Oxford Economics

SINGAPORE (Sept 6): While real house price growth remains positive on the global front, it has nonetheless slowed and there are rising risks from price declines in highly-valued markets and some emerging markets (EMs), says Oxford Economics.

According to the research house’s world price index, real or inflation-adjusted growth has fallen from 4% in mid-2017 to 2.7% in 2Q18, which is slightly above long-term average levels since 1997 and therefore relatively solid and still supportive of the global upturn.

Trade war won't be full blown; stay overweight on US, says DBS

SINGAPORE (July 2): Worries over trade tensions between the US versus China and Europe may have rattled markets in recent months, but DBS believes that a protracted, full-blown war is not likely to happen.

“End of the day, this will be resolved, it will not be full blown. Everyone recognises the costs,” says the bank’s chief investment officer Hou Wey Fook (photo).

More pain looms for EMs as lousy quarter sputters toward end

SAO PAOLO/NEW YORK(June 29): A dark quarter for emerging-market bulls is nearing an end, and it’s not clear whether things will get much brighter down the road, especially in the near-term.

Currencies, stocks and bonds in developing nations are closing out their worst quarter since 2015 and facing a looming trade war, tightening US monetary policy, elections in Latin America and a weaker global growth outlook. Valuations may look appealing, but this thicket of risks has some investors cautious about plunging back in.

Yangzijiang upgraded on attractive valuations after share price dip

SINGAPORE (June 12): OCBC Investment Research is upgrading its call on Yangzijiang Shipbuilding (YZJ) to “buy” from “hold” previously with a lower fair value estimate of $1.18 from $1.22 before.

The lower fair value comes after updating its SOTP valuation with a 0.65 times P/B for the group’s held-to-maturity assets, which represents a discount to the Chinese banks that now trading at about 0.75 times book.

Is it too early to go into Raffles Medical?

SINGAPORE (May 2): RHB is downgrading its call on Raffles Medical Group (RMG) to “sell” from “neutral” with an unchanged $1.02 target price.

The move comes on a number of factors including RMG’s recent share price run-up since the group’s release of its 4Q17 results, as well as expectations of potential headwinds such as start-up losses from its China operations.

10 biggest investor risks to look out for in 2018: Natixis

SINGAPORE (Jan 17): Economic and investor risks still abound despite relatively optimistic outlooks for 2018, according to Esty Dwek Roditi of Natixis Investment Managers.

In a Wednesday commentary, the investment specialist lists 10 of the biggest risks in the year ahead.

With the majority of market views remaining in line with consensus for the rest of the year, Dwek Roditi sees this as a manifestation of market complacency which translates to unpreparedness.

3 driving forces behind European equities in 2018: Schroders

SINGAPORE (Jan 2): Schroders is of the view that Pan-European equities will continue to enjoy good prospects in 2018 – even after their recent gains brought long-term valuations close to historic averages, with the MSCI Europe index up 9.3% year-to-date (YTD).

In spite of ongoing geopolitical events such as Italy’s impending May elections and ongoing Brexit talks in the UK, the global investment manager sees volatility around political events as a potential buying opportunity for active managers to purchase undervalued stocks.

Which of the major stock markets are 'cheap' going into 2018?: Schroders

SINGAPORE (Dec 28): Global investors should beware the temptation to simply compare a valuation metric for one region with that of another, according to global investment manager Schroders.

In a Thursday media release, Duncan Lamont, Head of Research and Analytics, discusses the five ways to measure stock market value, namely: forward price-to-equity (P/E), trailing P/E, cyclically adjusted P/E (CAPE), price-to-book (P/B) and dividend yield.

5 REITs to benefit from the economic growth cycle in 2018: RHB

SINGAPORE (Dec 19): RHB Research is maintaining “overweight” on Singapore REITs (S-REITs) on expectations of selective REITs to continue remaining in favour in 2018, following what the research house sees as a stellar performance in 2017.

In a Tuesday report, analyst Vijay Natarajan opines that S-REITs are likely to benefit from the current economic growth cycle and deliver distribution per unit (DPU) growth in the year ahead, with industrial and hospitality sectors expected to be the direct beneficiaries of the economic pick-up, further aided by supply tapering.

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