Valuations, valuations, valuations:
Based on the P/B chart, the STI is unambiguously cheap – trading close to the lows of 2016 (which by my memory were pretty extreme). The banks now are unfortunately not as cheap as they were in 2016.
The three banks are trading within what I would call a “range of reasonableness”. I will get their valuation charts up one day where its much clearer when visualized out.
About the Straits Times Index:
The FTSE Straits Times Index (STI) is a capitalisation-weighted stock market index that is regarded as the benchmark index for the Singapore stock market. It tracks the performance of the top 30 companies listed on the Singapore Exchange.
The price-to-book chart (P/B chart) is a useful complement for investors trying to understand how cheap or expensive a certain sector or country is.
In the case of Singapore, the Straits Times Index is …