Brokers' take

Singapore Strategy

UOB KayHian | December |

With FSSTI bouncing close to 5 per cent from its recent Sept 15 lows, the market appears to be range bound in 1H16. FSSTI looks inexpensive but the 18-29 per cent discounts to long-term mean valuations (PE and P/B) look appropriate given the mixed outlook and structurally weaker domestic growth prospects. We have a year-end target of 3,240 for the FSSTI.