Maybank TV

Maybank TV - MSCI and FTSE reviews to impact on Singapore stocks

https://www.youtube.com/watch?v=gMb2njFE38g

MaybankTV shares its insights on how MSCI and FTSE reviews will impact on Singapore stocks

Key stocks – Jardine Matheson, Jardine Strategic, Olam, Yangzijiang, UOL, Capital Commercial Trust, Suntec REIT, DBS, Ho Bee, Wing Tai

Overview:
MSCI expects to eventually include A-shares into its global benchmarks after resolving market accessibility issues, and estimates that the inclusion of A-shares could see inflows of ~US$400b into Chinese equities over time.

Expect the FTSE Russell to implement tighter liquidity rules in the Sep ’15 STI review, with Jardine Matheson, Jardine Strategic and Olam most at risk of being removed from the STI, while stocks on the STI reserve list like UOL, Capita Commercial Trust, Yangzijiang and Suntec REIT could be considered for inclusion.

Going into 2H15, Maybank-KE is of the view that the Singapore market lacks any major catalysts and expects it to trade sideways, albeit with a downward bias, and has a year-end STI target of 3,400.

Sector wise, the house continues to favour banks, on back of NIM expansion and resilient asset quality, while the house also favours high-end property developers on back of a potential play-up in the privatization theme and possible relaxation of cooling measures in the high-end segment.

The video can be accessed via the following link below:
https://www.youtube.com/watch?v=gMb2njFE38g