Brokers' take

Singapore

UOB Kay Hian, Nov 14

WHILE waiting for the dust to settle after the shock outcome of the US presidential election and the US dollar volatility, we highlight deeply undervalued stocks and companies benefiting from the US dollar strength.

Big-cap stocks we favour include OCBC (buy/target: S$10.45). Trading at -1.9 standard deviation (SD) to mean price-to-book ratio. OCBC is well positioned to weather the slowdown in the domestic economy due to its conservative management and strong CET-1 (core-tier 1) CAR (capital adequacy ratio) of 12.8 per cent. 2016-2017 forecast dividend yield of over 4 per cent. Sembcorp Industries (SCI) (buy/target: S$3.05). Trading at -2SD to mean pric…