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JPM: Foreign Investors Turn Selective On ASEAN Equities

EQUITIES

J.P.Morgan note that "ASEAN equity funds have observed $1bn of net outflows YTD"

  • Thailand: -$0.9bn
  • Philippines: -$0.8bn
  • Vietnam: -$0.6bn
  • Malaysia: -$292mn
  • Singapore: +$0.6bn
  • Indonesia: +0.9bn
  • "MSCI ASEAN is up 1.0% YTD, underperforming MSCI EM/APxJ (+4%) but dispersion in market performance is high. Vietnam (+7%), Singapore (+6%) and Thailand (+4%) are the best performing markets in ASEAN YTD. Philippines (-9%), Malaysia (-3%) and Indonesia (-3%) are laggards. As economies in ASEAN continue to recover in 1Q21 with vaccination campaigns giving a more visible near-term outlook, we continue to see earnings revisions trending upward in the region. We believe this clears the path for better returns and reversal in flows into ASEAN equities as foreign investors search for value/reopening plays in under-owned EM region. Our country preference order is Thailand > Singapore > Indonesia > Philippines > Malaysia."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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