Reuters: Hot Stocks: STOCKS NEWS SINGAPORE-Bank valuations seen attractive-Nomura

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STOCKS NEWS SINGAPORE-Bank valuations seen attractive-Nomura Aug 6th 2012, 07:59 Mon Aug 6, 2012 3:59am EDT Nomura says valuations of Singapore banks look relatively more attractive compared to others in Southeast Asia, while rating the sector 'overweight' citing solid fundamentals. "Our positive Singapore banks call is relative, underpinned by increasingly positive contrast versus global bank peers and, on valuations, versus ASEAN peers," the broker said in its ASEAN banks report. "Singapore banks, deriving 65-90 percent of group profit before tax from ASEAN, have seen valuation discount to ASEAN peers steadily expand over the last two years," it said. DBS Group Holdings Ltd, currently trading at 1.1 times forecast 2012 book value, was its top pick. DBS reported second-quarter earnings of S$810 million, up 10 percent year on year, which was 4 percent ahead of Nomura's estimate, it said. The broker said United Overseas Bank Ltd was a defensive choice due to its relatively transparent and low-beta operating platform. Nomura was also overweight on Indonesia and Thailand banks in Southeast Asia. 1448 (0748 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) ************************************************************ 12:46 STOCKS NEWS SINGAPORE-Index rises to 1-year high; F&N at record Singapore shares rose to their highest in more than a year after better-than-expected jobs data from the United States, while drinks and property firm Fraser and Neave Ltd FRNM.SI was among the biggest gainers after a deal with Heineken HEIN.AS. The Straits Times Index .FTSTI gained as much as 1.1 percent to 3,086.18 points, the highest since Aug 4 last year. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was 1.7 percent higher. F&N shares jumped to a record on speculation that a break-up of the Singapore conglomerate will unlock more value after its board accepted Heineken's $4 billion offer for its stake in Asia Pacific Breweries APBB.SI. (Full Story) F&N shares rose as much as 4.9 percent to S$8.55 on volume of nearly 6 million shares, 1.4 times the average full-day volume over the past 30 days. F&N was the top traded stock by value in the Singapore market. Shares of DBS Group Holdings DBSM.SI rose as much as 1.5 percent after Maybank Kim Eng and OCBC Investment Research raised their target prices on the bank following a 10 percent increase in its second-quarter result. (Full Story) Shares of energy, water and marine group Sembcorp Industries SCIL.SI gained as much as 1.5 percent to S$5.37. UOB Kay Hian upgraded the stock to 'buy' and raised its target price to S$6.20 from S$5.20, after increasing its 2012-2014 earnings forecasts by 3-7 percent on better-than-expected utilities earnings. 1328 (0528 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com) *********************************************************** 12:49 STOCKS NEWS SINGAPORE-Maybank Kim Eng, OCBC raise target on DBS Maybank Kim Eng and OCBC Investment Research raised their target prices on Singapore's DBS Group Holdings DBSM.SI after the bank beat forecasts with a 10 percent increase in its second-quarter net profit. DBS shares were up 1.2 percent at S$14.93 on Monday. The stock has gained around 30 percent so far this year versus the 16 percent gain in the broader Straits Times Index .FTSTI. OCBC increased its target on DBS stock to S$15.94 from S$15.40 and maintained its buy rating, after raising its 2012 fiscal year earnings estimate to S$3.25 billion ($2.6 billion) from S$3.14 billion. While market conditions are expected to remain challenging, DBS's management strategy such as to increase cross-selling, raise productivity, reduce its cost-to-income ratio and grow its key businesses may help ensure a healthy second half, OCBC said. Maybank increased its target price to S$13.10 from S$12.10 to take into account a higher price-to-book value of 1.05 times versus 0.97 times previously and a bigger 2012 return on equity of 11.1 percent from 10.8 percent. The broker noted that DBS's loan momentum picked up in the second quarter and liquidity remains ample, but the bank still faces net interest margin pressure and external headwinds. Maybank maintained its 'sell' rating on DBS stock. For a related story, click (Full Story) 1236 (0436 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com) ($1 = 1.2432 Singapore dollars) Link this Share this Digg this Email Reprints

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