Singapore banks' earnings growth, dividends attractive; Reits looking overpriced: UBS

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Singapore banks' earnings growth, dividends attractive; Reits looking overpriced: UBS
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SINGAPORE bank stocks are starting to look more attractive at current levels while its Reits are beginning to look overpriced, said UBS Global Wealth Management in its July CIO Investing in Asia Pacific monthly report. Read more at The Business Times.

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"We expect banks to deliver earnings growth on the back of resilient loan growth, stable asset quality and net interest margin expansion," said UBS.Meanwhile UBS said Reits’ valuations are"starting to look rich", with dividend yield one standard deviation below its long-term average and several Reits currently trading at multi-year highs.

High dividends are popular in Asia, given the region’s attractive dividend yield of around 3 per cent and the recent performance of high dividend yield companies. Besides recommending banks in Singapore, China, Thailand, Indonesia and India for dividend payout, UBS also said select Taiwanese companies could benefit from the upcoming dividend season, where it"sees scope for higher payouts".

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