Jun 26, 2007, 2:55 GMT
Singapore - Investors have been urged to 'sell Singapore' and put their money into Taiwan, a US bank's strategy report said on Tuesday.
In a turn-about in the bank's own position, Citigroup Research said Singapore is currently an expensive market in both an asset and cash-flow basis.
'Singapore has many things going for it,' said chief Asia Strategist Markus Rosgen. 'The equity market is not one of them.'
In a recommendation running counter to market consensus, Rosgen called for a 'buy' on Taiwan.
'Relative to the region, valuation have hit levels only seen in crisis periods,' Rosgen said in the 19-page report. 'This is a value, not momentum play.'
Regarding Singapore, Rosgen said the price to book value is currently the highest it has ever been since 1990.
'We have enjoyed the ride,' he said. 'It's time to get off.'
Citigroup is now underweight in South-East Asia and overweight in South Korea and Taiwan.
Citigroup has favoured Singapore over the last three years because it was cheap and offered a high-risk reward.
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