HSBC has upgraded Indonesia, Malaysia and the Philippines, while keeping
its 'neutral' rating on Singapore and 'overweight' call on Thailand.
HSBC raised Indonesia to
'overweight' from 'neutral', noting that domestic demand and less competition
will help sustain the highest return on equity in the region. Indonesia's
market is "unloved" with potentially positive growth surprises, it
added.
Malaysia will benefit from strong
economic growth coupled with low inflation, HSBC said, adding that the country
has defensive and stable characteristics, high yield and is likely to benefit
from stimulus before the elections late this year.
HSBC upgraded Malaysia to
'overweight' from 'neutral'.
After a long period of
under-investment and political turbulence, the Philippines is catching up fast,
HSBC said, upgrading the market to 'neutral' from 'underweight'. But it said
valuations are looking expensive.
HSBC said Singapore is one of the
more stable, developed Asian markets with high dividend yields and very low
earnings volatility. However, it added, mutual funds have aggressively bought
Singapore equities in the last three months, raising the risk of a sell-off. It
remained neutral on the city-state.
HSBC maintained its 'overweight'
call on Thailand, saying the country offers a structurally strong growth story.
"Valuations are reasonable, there's the possibility of a near-term growth
surprise, the dividend yield is attractive and political risks are
easing."
Thailand and the Philippines are
among the best performing markets worldwide so far this year, up 22 percent and
19 percent respectively.
Reporting by Eveline Danubrata in
Singapore
Reuters
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
No comments:
Post a Comment