Dear readers, let us take a look at the sixteen undervalued Straits Times Index (STI) stocks right now. We begin the list with the cheapest STI stock that is to say the STI stock with the lowest Price-to-Book ratios, in ascending order.
These sixteen STI stocks with their Price-to-Book ratios in brackets are as follows.
Hongkong Land (0.222)
Sembcorp Industries stock (0.398)
JMH USD stock (0.486)
UOL stock (0.563)
JSH USD stock (0.605)
SPH (0.607)
Capitaland stock (0.625)
City Development stock (0.662)
SIA stock (0.679)
OCBC stock (0.802)
UOB stock (0.829)
Jardine C&C stock (0.873)
CapitaCommercial Trust (0.879)
CapitaMall Trust (0.892)
DBS stock (0.974)
Keppel Corporation stock (0.981)
The most undervalued Straits Times Index (STI) stock is none other than HongKong Land stock once again. On the internet, I have been reading of interest among some investors for this stock, notably because of the super price-to-book ratio. However, notwithstanding the interest, investors should note that the ongoing developments in Hong Kong may shape the stock further. Same as with the three Jardine family group of stocks in the oversold stocks list above which are Hong Kong centric. The current development in Hong Kong is still worth monitoring.
On this note, the next undervalued stock Sembcorp Industries stock may be a safer bet. The stock is currently at one of its all-time low at $1.51. I always like to compare the two conglomerate stocks in Keppel Corporation and Sembcorp Industries. Despite Keppel Corporation stock being undervalued too, Sembcorp Industries stock is now 2.5 times cheaper based on Price-to-Book ratio than Keppel Corporation! My thinking as shared with readers is that there could always be scope for consolidation in the energy businesses between these two energy offshore giants.
The three biggest bank stocks: DBS, OCBC and UOB are all undervalued right now. I believe these banking stocks should remain undervalued for quite some time unless there are positive catalysts on the economic front which will then lead them to becoming fully valued and more gradually.
It is also noteworthy that Capitaland stock and its two trusts (CapitaCommercial Trust and CapitaMall Trust) are both undervalued with the parent stock (Capitaland) more undervalued than the trusts. Beside these property stocks, City Development stock and UOL stock are the other undervalued property plays in the Straits Times Index list.
Last but not least, we have the remaining two oversold stocks: SIA and SPH stock. Both stocks are now in challenging businesses. I think there is lot of interest in SIA stock when it trades next month with its $3 per share Right shares.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! I also run another blog Singapore Stocks Investing with similar useful insights! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
BINGE READ ALL POSTS!
Visit Home Page for more reads or Connect here!