In our previous post, we shared our plans to diversify our investment portfolio. Since then, my wife and I sold half of our OCBC shares at $11.50 and CPFIS’s STI ETF at around $3.41 to build up investment war-chest as well as protect overall profits in our CPF portfolio.
We kept a constant look out for trigger news e.g SG banks’ Q3 financial results this week, to gather information to help us assess the general impact from the trade war climate. Key points from CEOs of the three banks:
DBS
CEO
OCBC CEO - Source: Business Times
UOB CEO - Source: Business Times
To us, it is important to understand how the banks position themselves. We are keen on their strategy to support new business models and shifts in supply chain e.g. market positioning, shift in loan strategy, etc. Overall, we remained positive on the prospects in the Greater
China and ASEAN market. To this end, my view is that OCBC and UOB are better positioned.
OCBC
have strong exposure in Greater China, Malaysia and Indonesia. There were reports on their plans to increase stakes in Bank of Ningbo. If this materialises,
OCBC’s deeper presence in Greater China could open up more opportunities to the
wider Chinese market and position them well for China’s One Belt One Road
initiative.
UOB have a good presence in Thailand and broad
network in Malaysia, Indonesia and China. After setting up their digital bank
in Thailand, there were reports of UOB considering to launch digital bank in
Vietnam or Indonesia too. Both countries possess abundant opportunities. They
are likely to come from the shift in supply chain from China to Vietnam, as
well as from Indonesia's plans to shift their Capital which would require
significant amount of infrastructure loans and investments.
Trump’s tariff hike on Chinese imports had
came in rather abruptly and have caused a stir to the stock market.
This looks like a buying opportunity... and
our war-chest stands ready to fire.
GoHuat
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