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ASIAN MARKETS: J.P.Morgan note "ASEAN equity funds...>

ASIAN MARKETS: J.P.Morgan note "ASEAN equity funds have witnessed cumulative net
outflows of US$12.4bn YtD. Equities have underperformed the broader markets YtD
& continue to remain under pressure on account of slower growth, currency
weakness, 1st-order impact of COVID-19 on the service sector & idiosyncratic
factors. Flows have been -ve in June as mkts price in risk of a 2nd wave:
- Thailand: -$737mn, Malaysia: -$679mn, Indonesia: -$318mn Philippines: -$190mn.
Vietnam, on the other hand, had inflows of $610mn, largely on the back of KKR
led consortium's acquisition of minority stake in Vinhomes. As per our latest EM
fund manager positioning survey, amongst the smaller markets (EMs that are less
than 2% of the benchmark), Indonesia is the only marginal net OW markets.
Thailand & Malaysia continue to see massive net selling. Since Aug '19 investors
have net sold $10.1bn & $5.3bn in Thai & Malaysian equities respectively.
- Foreign investors turned net buyers of Asian bonds in May & June. Indonesia
saw $612mn & $212mn of buying in May & June respectively. Foreign ownership for
INDOGBs has come down to 31% from 39% at end '19. In Thailand, investors sold
$284mn in May & bought $1.1bn in June (MtD), foreign ownership near record low."
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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