Singapore shares were little changed, with several brokers saying they continue to favour oil and gas stocks such as Ezion Holdings as oil prices are expected to remain favourable for exploration and production activities.
The Straits Times Index was up 0.1% at 3,079.72 points. The MSCI index of Asia-Pacific shares outside Japan added 0.6%.
DBS Vickers said the Singapore market is cheap on dividend yield and price-to-book ratio compared with the rest of the region, but its earnings and return on equity outlook are less attractive.
Yield compression and a slower second half in 2012 are likely reasons to take profit, DBS said. But it noted that the market will continue to be supported by strong yield plays.
Its picks are oil and gas stocks such as Sembcorp Marin, ASL Marine Holdings, STX OSV Holdings and Ezion.
Ezion shares rose as much as 1.9% on Tuesday after DBS, DMG & Partners Securities and OCBC Investment Research all said they liked the stock. DMG said it expects Ezion to announce record quarterly core net profit for its third quarter.
Ezion's stock has more than doubled this year versus the 30.5% gain in the FT ST Oil and Gax Index.
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