Phillip Capital’s top “buy” picks for 2019 include United Overseas Bank (UOB) for its attractive dividends as well as SGX due to its rapidly-growing derivatives business. These stocks have been given target prices of $32.52 and $9.01, respectively.
SINGAPORE (Jan 4): Phillip Capital is maintaining its Straits Times Index (STI) target of 3,400 in Oct 2019 – which pegs the market at 13.5 times, or around its ten-year average valuation – as the research house advocates a lower-beta equity portfolio for the year, with an emphasis on dividend-paying stocks.
In a Friday report, head of research Paul Chew opines that the Singapore market is currently cheap on a historical basis, as the STI currently trades at 1 SD of its 10-year historical valuations on a forward P/E of 12 times, or P/B of 1 times.
