SG strategy

Citi initiates strategy report for 2011, with STI target of 3450, representing a 20-30%, and a 1.78x P/B STI, +0.5SD above mean & well below 2.3-2.4x bubble levels of past cycle peaks. Tip Banks & property segments to be buoyed by liquidity and expct GDP growth to moderate but to remain resilient. Top picks include DBS, KEPCorp, YangZiJiang, Genting SP, M1, A-REIT, All Greem

Nomura initiates strategy report for 2011. Sees 10-15% upside in SG for 2011, underpinned by attractive valuations, backed by strong liquidity, SGD Macro & industry drivers, which will add to a positive stance towards banks , Commdities, O&M & commercial properties. Expect to ride the reflation cycle in 2011. Top picks include OCBC, GoldenAgri, IndoFood Agri, KepCorp, SembMarine, CapitalCommercialTrust, K-REIT, Noble, F&N, DBS & BioSensor.