Patrick Stock Reading

Thursday, September 11, 2008

Bank: DBS, UOB, OCBC

It was reported by Reuters that Singapore banks are likely to be in the spotlight today due to the downgrade of rating by Merrill Lynch of our local Banks.

Reason given was our property market is in "protracted downturn", and expecting a slower economic growth, hence it will have an impact on 2009 profit of our local bank. DBS and OCDC was rated underperform and UOB rated Neutral. Target price were being lower for all three local Banks.

For many of us who is dieing for a pc of share for the bank, guess it is times to closely monitor the price movement of our three Big Banks. Of course you must do some homework, and before jumping in, have your entry price set.

Flankly, I do thinks that our property market have being holding on too long to stay above water. Is the demand is as high as expected? I don't really think so. So Why and what causes the buying spree? My best guess is people are not waiting because of fear that the price will continue to raise higher and higher. However, once this group of buyer (generally from local) are gone, the "seller", well hold on the your bady till the next up turn on those highly over price houses. hm.. guess the next down turn is on it way as the day goes by...

Oh.. I'm not train and no pro or guru, OK. read for fun and forget it.