UOB

Kim Eng Research in a Dec 12 research report says: "While mortgages account for about 30% of UOB’s Singapore loan portfolio, the bank has a higher 90% exposure to private residential, which is a segment that is likely to be harder hit by the government’s recent imposition of the additional buyer’s stamp duty.

"At 9.4% of shareholders’ funds, UOB’s Eurozone exposure is likely to remain a drag on sentiment relative to peers, in our view. UOB’s share price has declined by 27% from its peak of $21 this year, and has just about breached our previous target price of $15.60.

"We nevertheless continue to expect headwinds ahead, not least because the latest round of housing curbs will compound the negatives. Target price lowered to $14.20, pegged at a lower FY12F P/BV of 1x (1.1x previously). UOB traded at a GFC trough P/BV of 0.8x. MAINTAIN SELL."