Singapore’s private home prices rose 2.9% on a quarter-on-quarter (QoQ) basis in 1Q21, based on URA’s recent flash estimates. This is tracking above the street’s expectations, and was the fourth consecutive quarter in which private home price growth accelerated from the preceding quarter. On the other hand, the HDB Resale Price Index showed a 2.8% QoQ increase in 1Q21, based on flash estimates.
Reiterate sector Overweight. We think that improving business sentiment and ample liquidity conditions set the stage for credit growth momentum.
MAS likely to ease its stance on dividend cap imposed as Singapore banks have preserved sufficient capital. We expect higher dividends for FY21F on gradual relaxation of dividend caps; a two-stage relaxation seems to be a more likely scenario
Bank shares tumbled overnight after Credit Suisse and Normura warned that they faced huge losses from a multi-billion dollar fire sale of stocks held by Archegos Capital Management, the investment company that manages the personal fortunes of former hedge fund mogul Bill Hwang.