STI - Pullback to 3207 in weeks before resuming climb to

3455 by end-June (DBS)

The just concluded results season led to only modest change

to STI’s 14.13x (Ave) forward PE levels. Assuming STI continues

to stick around the Ave 12-mth forward PE line, it should head

for 3450 by end-June and 3600 by year-end. That’s an average

pace of 45pts/mth, much more gradual than the c.145pts/mth

momentum that lifted it from 2945 in mid-Nov last year to

3320 by 4th Feb. While STI’s major rising trend stays intact, we

think a short-term consolidation has likely started that can