DBS Vickers Dumps UOL, Adds Keppel REIT
Singaporean brokerage DBS Vickers has shaken up its model portfolio with one new addition and one stock being dumped.
Property developer UOL (U14.SG) - which is up 24% since its inclusion last July - has been dumped from blue chips category of the model portfolio. Here's why:
While UOL is our preferred pick among the large-cap property stocks and the sector has outperformed the market YTD, we choose to lock in UOL's strong performance. Interest could switch from the current sector performance leaders (banks, properties and technology) to consumer discretionary and industrial sectors should the economic recovery progress further.
Keppel REIT (K71U.SG), which is up 6% so far this year, has been added to the dividend category of the model portfolio. Here's why the stock makes the cut:
KREIT trades at the biggest discount to book value of around 25% but has the largest exposure to Premium Grade A buildings in Singapore, which we believe will be best placed to take advantage of the expected upswing in the Singapore office market.