The research house’s base case is for the STI to trade at around 3,632 with a potential upside of 17% from Dec 5 levels, based on 7% earnings growth and a seven-year historical average price-earnings ratio (PER) of 13.9 times.
SINGAPORE (Dec 24): OCBC Investment Research is projecting for the Straits Times Index (STI) to trade as high as 4,125 in 2019 in a bull case scenario.
As at Dec 5 this year, the index traded at 3,156, 18% down from Bloomberg’s target of 3,721.
