Singapore Market to Trough In 1Q09 – UOB KayHian

0828 GMT [Dow Jones] The Singapore equity market will likely bottom in 1Q09 as in recessions stock markets typically bottom out in first quarter of very sharp GDP contraction, says UOB KayHian. Notes Singapore stock market already trading at undemanding P/B of 0.99X, says market unlikely to revisit Asian Financial Crisis trough valuations given Singapore’s strong corporate, household balance sheets, as well as low interest rates. Suggests strategy of holding deep-value yield stocks, together with high-beta large caps. Says based on stock target prices, bottom-up STI target is 2150; adds technical analysis also suggests STI could head towards the 2100-2200 level. STI currently down 3.6% at 1730.37. (KIG)