Stock Rating Procedures
Equity
BUY, Hold, and Reduce recommendations are based on Expected Total Return (ETR - i.e. absolute performance expected in the following 12 months inclusive of the dividend paid out by the stock) and on the degree of risk associated with the stock according to the matrix shown in the table below. The level of risk in turn is based on (a) the stock's liquidity and volatility and (b) the analyst's opinion of the business model of the company analysed. Due to fluctuations in stock prices, ETR may temporarily fall outside the range indicated in the table.
EXPECTED TOTAL RETURN FOR THE VARIOUS RECOMMENDATION AND RISK-PROFILE CATEGORIES
| Recommendation | Low Risk | Medium Risk | High Risk |
| BUY (positive view) | ETR >= 10% | ETR >= 15% | ETR >= 20% |
| HOLD (neutral view) | -5% < ETR < 10% | -5% < ETR < 15% | 0% < ETR < 20% |
| REDUCE (cautious view) | ETR <= -5% | ETR <= -5% | ETR <= 0% |