Singapore property stocks: It’s not time to bottom fish, Nomura says

Singapore two-dollar bills

It’s not the time to go bottom-fishing for Singapore-listed real-estate stocks, according to a Nomura report on Monday.
The FSTRE index fell 5 percent last week, underperforming the STI’s 4.3 percent loss, the report said. But it noted that the pullback of around 7.4 percent from the January 22 peak through the end of last week only brought the index back to where it was during peaks in 2013 and 2015.
Nomura added that the FSTRE index is trading at a price-to-book ratio of around 0.86, pretty much in line with the average of 0.89 it has traded at since 2010.
“In short, it seems to us that there is not much of a ‘bottom’ for investors to pick despite the recent sharp pullback,” Nomura said.
In afternoon trade, the FTSE ST Real Estate Holding and Development Index was down 0.51 percent, while the FTSE Real Estate Index had edged up 0.08 percent. That compared with the Straits Times Index’s 0.51 percent rise.