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from me to fundsupermart
Subject:accuracy of singapore valuations on

Hope you can clarify some issues i have after viewing your site.

As mentioned on\
you say
"the Singaporean market is priced at about 15.5X and 14.2X for 2007 and
2008 respectively"

however in the attached file (citigroup research ) i see a p/e near 20.

also we have for the msci singapore etf
EWS has a p/E of 19.9 a p/book of 2.83 on 31/1/2007 with nav 11.65

So which number is correct, if we use the P/E of 20 as reported by
citigroup and the MSCI etf then singapore is overvalued.


Fund supermart replies

Hi returntomean,

Thanks for your qn.

Just wish to first highlight on the date of the link that you sent to
us: it is actually dated January 2007 and it is a report that we update
every month end. So the data is as at end December 2006.

The report that you highlighted was dated on 23 February 2007, and on
that day the STI was at 3310.44 (before the recent correction). Based on
the figures by us, estimated PE at such levels is at 17.1X for 2007 and
15.7X for 2008. The PDF files that you sent us, if you look at PE for
2007 is at 18.4X. Usually we usually look at the PE for 2007 rather than
2006 as earnings for 2006 is typically less representative of the
market after the year has passed.

Even though that is the case, there is still a difference of 1.3X, this
difference can be explained because perhaps Citigroup and us use
different earnings growth forecasts that differs from our own
of deriving the figures.

As at end 28 Feb (after the market corrected), estimated PE is at 16.1X
for 2007, the index is at 3104.15. Our report as at end Feb will be out
next week. You can click on this link:\

to get an updated summary of the est PE.

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