Friday, 21 April 2017 | MYT 2:40 PM
“Structurally, Asean’s economies do appear better placed to deliver on growth than those in North Asia,” Mixo Das, an equity strategist at Nomura in Singapore, wrote in the note.
“A further rotation into emerging markets from development markets and a long-term compression of the EM vs DM valuation gap should also prove supportive.”
The MSCI Asean index has rallied 9.7 percent this year, trailing a 12 percent advance in the MSCI AC Asia Pacific Excluding Japan Index.
The Asean gauge fell 22 percent over the four years through the end of 2016, compared with an 8.5 percent decline in the wider Asian measure.
Philippines has the “cheapest” stock market in the region and is expected to outperform in 2017 as earnings outlook improves and clarity on tax reforms could help boost consumption among the middle class, Nomura’s Das said.
Indonesia is also rated overweight, while Malaysia and Singapore are both seen to underperform. Das has a hold rating on Thailand.
Meanwhile, Morgan Stanley sees the Fed’s stance on U.S. rate increases as supportive of emerging market currencies with Indonesia as the key beneficiary, equity strategists Sean Gardiner and Aarti Shah wrote in the note.
Malaysia was the next preferred market, followed by Thailand, Singapore and the Philippines. - Bloomberg
Read more at http://www.thestar.com.my/business/business-news/2017/04/21/nomura-sees-southeast-asian-stocks-shedding-underdog-tag/#mzgOmuDwd2QATKhW.99
Ooi Kak Hwa: The share market will be extremely bullish!
Goreng Goreng Goreng.....
Created by gorenggoreng88 | Apr 21, 2017