Wednesday, April 20, 2011

Strategy/Election (Citi)

Strategy/Election: Citi views election as a vote on Singapore’s long-term growth plans. Note that growing concerns over the social ramifications of the widening income gap may moderate future growth rates. Like big cap stocks that are mid-to-late economic cycle plays…..

key picks include KepCorp as a proxy for rising demand for replacement rigs; DBS Bank as a representative of banks here that feature a strong equity base and have diversified their earnings base; and GLP and SIA on attractive valuations. See value in real estate developers, like WingTai, which is near bottom end of trading range. Add that strong vote in elections could be strong catalyst for real estate developer stocks given implications of continued immigration to fuel growth.

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