atans1

S’pore is Asean equities mkt of choice

In Indonesia, Uncategorized on 14/06/2014 at 4:37 am

Singapore equities are Morgan Stanley’s Asean choice compared with those of Thailand and Indonesia, because of their attractive valuations and defensive nature.

“In a rising rate environment, we believe Singapore could be a relatively safe haven (despite its higher earnings volatility), excluding its relatively vulnerable property sector,” a report by Morgan Stanley Research said yesterday.

In a huge plug for the PAP govt (eat yr hearts out TKL, KenJ, TRE readers), S’pore’s relatively low political and policy risk and its healthy banking system, and well managed cash-generating firms are what makes S’pore its top pick in Asean..

This contrasts to the continued political uncertainty in Thailand and the fact that positive developments on the Indonesian macroeconomic front appear to have already been priced in by equity investors. Morgan Stanley report was neutral on Indonesia, and Thailand was the analysts’ least-preferred market.

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