OCBC Top Picks for Singapore Stock Market
Posted by admin on 12/14/07 in Stock News
QDII Funds and FTSE ST China Index add buzz to S-Shares. We expect the interest in S-Shares to sustain in 2008, bolstered by the influx of QDII funds as well as the introduction of the FTSE ST China Index.
The FTSE ST China Index also opens opportunities for the implementation of a wider suite of products, such as derivatives based on S-Shares, adding to the buzz surrounding these stocks.Focus on the Consumer and Manufacturing sectors. Among the universe of S-Shares, we are bullish on the consumer sector, for its ability to leverage on China’s strong consumption growth, and the manufacturing sector, for its strategic advantage of having a low cost manufacturing base.
Our stock picks are: Cacola Furniture International Ltd (BUY, Fair value estimate of S$0.75), Man Wah Holdings Ltd (BUY, S$0.99), China SportsInternational Ltd (BUY, S$2.48), and Pacific Andes Holdings Ltd (BUY, S$0.87) for the consumer sector, and Bright World Precision Machinery Ltd (BUY, S$0.80), Dutech Holdings Ltd (BUY, S$0.535), Midas Holdings Ltd (BUY, S$1.85) and Midsouth Holdings Ltd (BUY, S$0.90) for the manufacturing sector.
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