Combing through the debris of the STI’s 5.4% year-to-date fall, UOB KayHian says there are “selective opportunities for stocks that have been excessively sold down.”
It notes the recent market volatility is in-line with its view that 2011 is likely to be choppy given the uncertain external environment. “Other than inflationary fears, fund flows switching to developed markets on relative valuation grounds have also contributed to the market’s YTD fall.”
It notes the recent market volatility is in-line with its view that 2011 is likely to be choppy given the uncertain external environment. “Other than inflationary fears, fund flows switching to developed markets on relative valuation grounds have also contributed to the market’s YTD fall.”
 
Ranking stocks based on significant discounts to their 52-week highs, it sees opportunities in OUE (LJ3.SG), Keppel Land (K17.SG), First Resources (EB5.SG), Ezra (5DN.SG), Ezion (5ME.SG) and City Developments (C09.SG): 
 
“These stocks are in line with our preference for office properties (over developers) and commodities as an inflation hedge and mid-cap oil services providers.” 
 
It adds, in the big-cap space, " we favour banks given their undemanding valuations and as proxies to Singapore’s economic growth. 
 
In addition, we think the continued recovery in corporate loan growth bodes well for sector loan growth." It favours OCBC (O39.SG) and DBS (D05.SG).