Nomura Strategy View

Strategy: Nomura has a 4Q12 outlook report. Expects the STI to consolidate below the 3000 level, given a weaker earnings and economic outlook. For sector view, Nomura downgrades Banks weighting down to Neutral. Remains Bearish on Gaming given the policy overhang. Highlights Bullish view on Conglomerates which reflects its defensive stance for 4Q12. Continues to favor REITS, even though there could be some profit taking following the strong performance ytd; remains cautious on Developers due to the recent property measures. Bullish on the Upstream Plantation names but remain cautious towards Midstream ones. For stocks, Nomura removes UOB, CCT, Wilmar and Golden Agri from its list of top picks. Replaces top picks with Ascendas H-Trust, Jardine Matheson, First Resources and Bumitama. Likes ST Engg, Keppel Corp, Jardine Matheson and SCI for their defensive qualities and yields. Chooses DBS as its proxy for the banks given undemanding valn and div yield. Among the Reits, favors Ascendas H-Trust and Suntec. Also likes Biosensors for exposure to Healthcare.