Singapore Banks - OCBC Investment 2023-12-18: To Exit Or Double Down? Are Singapore Banks Too Expensive?

• In 2023, banking shares were largely able to hold their grounds, but share prices have taken a hit recently. This is based on the FTSE ST All-Share Financials Index (FSTFN), which fell from 1162.07 on 15 Sep 2023 to a recent low of 1079.17 on 7 Dec 2023, or a decline of 7.1% in the past three months.
• - Read this at SGinvestors.io -
• Is this an early sign to reduce holdings ahead of slowing macroeconomic growth and challenging conditions in 2024 or is it time to increase holdings as share prices tend to reflect known uncertainties?

Are Singapore banks too expensive?

• From the pandemic lows in March 2020 till now, Singapore banking stocks have recovered almost 70% on average – a credible performance over a period of less than four years. This could possibly explain why banking stocks are at times deemed to be too expensive versus the Straits Timex Index, which recovered 39% from the pandemic low to current level or when compared to the MSCI Singapore Index which rose only 8% over the same period.
• - Read this at SGinvestors.io -
• Our base case is for a mild recession in 2024 and that interest rates will start to ease off.

What about valuations? Are these too rich?

• Read more at SGinvestors.io.

Carmen Lee OCBC Investment Research | https://www.iocbc.com/ 2023-12-18 SGinvestors.io

---