Booking.com

Booking.com

Favorite Links

Wednesday, February 20, 2013

Singapore large-caps may begin to outperform small-caps: Credit Suisse

Source: http://www.theedgesingapore.com/the-daily-edge/business/42809-singapore-large-caps-may-begin-to-outperform-small-caps-credit-suisse.html


The Singapore market's 2013 rally has improved headline P/E to 14.2x from 12.7x in January 2012, above its 13.2x five-year average, Credit Suisse says, noting small-to-mid cap stocks have done well recently.
"Implied cash flow return on investment expectations are now above consensus forecasts for mid/small cap stocks, while for the larger cap stocks, these are below consensus estimates. Without large EPS upgrades, the large cap stocks should begin to outperform (on a risk-off, though difficult to time the turn)."

It likes SingTel (Z74.SG), Jardine Matheson (J36.SG)/Jardine Strategic (J37.SG), Keppel (BN4.SG) and CapitaLand (C31.SG), noting it is underweight the banks.

No comments:

Post a Comment