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Singapore Stocks Watchlist: Will STI Index Go Higher?

ByBL
Published 07/10/2013, 02:23 PM
Updated 07/09/2023, 06:31 AM

STI Index is very high, will it go higher? I do not know. But I would like to stay invested, in case STI Index continues to rise higher. On the other hand if STI Index crashes, I do not want to get too much damage from my stock investment. I will certainly avoid high PE stocks in this investment environment.

To resolve this issue, it will be good for investors to buy stocks that are trading below tangible book value. This will provide a margin of safety to the investors as downside risk will be limited. At the same time investors may want the stocks to pay a decent dividend. In the event that the stocks do not rise over a period of time, the investors are compensated for its dividend while waiting for the stock prices to rise.

I had done a stock screening using bloomberg. Below is the list of Singapore stocks that fit into my requirements. The stocks that catch my interest are Karin Technology and Suntec REIT.

Karin Technology is engaged in the distribution and trading of electronic components and provision of IC software application design solutions to electronics manufacturers. Karin Technology has dividend yield of 7.38%. Most importantly Karin Technology has earning growth of 15% from 2005 to 2011. So investors will profit from dividend payment as well from capital gains.

Suntec REIT’s portfolio comprised office and retail properties in Suntec City, Park Mall, CHIJMES, One Raffles Quay and Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall. Suntec Reit has the lowest valuation among the Reits. It has a price to tangible book value of only 0.77 times and it pays out dividend yield of 5.83%.
Singapore-stocks-trading-below-book

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