Saturday, November 10, 2007

Singapore Banks

Dear Mr Tan,

Many of the banks in America are reporting big write-downs on their credit portfolios, in the billions of dollars. Will this situation apply to Singapore banks?

REPLY

I recall that the Singapore banks had acted earlier and made provision for the write-down on their collaterialised debt obligations. The bank stocks are now trading at 10% to 15% below their recent peak.

I have seen some recommendations from stockbrokers that the banks represent good value at the current level.

However, it is difficult to know if there will be further write offs.
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1 comment:

Loh Hon Chun said...

Many shares are currently trading lower than their peak. But I thought it would be more prudent to stay of the market for the time being. It's Barclays turn to be "victim". Technology stocks are begining to take the beating after Cisco reported lower profits last Friday.


hongjun

November 10, 2007 4:24 PM

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