Morgan Stanley upgrades Singapore banks to overweight

Singapore

ANALYSTS from Morgan Stanley (MS) have upgraded Singapore financials to "overweight" on the back of stronger return on equity (ROE), earnings visibility and relative dividend yield, according to the Morgan Stanley Research's 2020 Asia EM Equity Strategy Outlook report.

With the stabilisation of gross domestic product (GDP) and less downward pressure on rates, Singapore banks are well supported and should benefit from growth in book value and dividend yields of around 4.5 per cent, noted the report.