IT seems that having a cheap stock valuation bodes well for the local stock market, after all.
This, as the Switzerland-based financial-services firm Credit Suisse, in its latest global-equity strategy report, cited the Philippines as one of its recommended markets in emerging Asia alongside China and Thailand. The report excluded Japan as an emerging market in the region.
Credit Suisse described the markets in Asia as more attractive investment destinations than the markets in Europe because of low macroeconomic risk, high exports, high domestic sales and current-account surplus.
IT seems that having a cheap stock valuation bodes well for the local stock market, after all.
This, as the Switzerland-based financial-services firm Credit Suisse, in its latest global-equity strategy report, cited the Philippines as one of its recommended markets in emerging Asia alongside China and Thailand. The report excluded Japan as an emerging market in the region.
Credit Suisse described the markets in Asia as more attractive investment destinations than the markets in Europe because of low macroeconomic risk, high exports, high domestic sales and current-account surplus.
The Asean stock-exchange linkage is primarily a technology link that will allow investors from other Asean countries to buy or sell Asean-listed securities through their local brokers.
“We anticipate with much enthusiasm to finally forge a tie-up for the Asean exchanges linkage. Not only will the project mean a more meaningful partnership with our counterparts, but it will also lay the foundation for an integrated and stronger Asean stock market,” said Lim.
The PSE said the urgency of developing linkages among Asean exchanges arises mainly from global pressures that could make small exchanges irrelevant in the global financial market arena.
Over the past years, various exchanges have been consolidating through direct buyouts, exchanges taking a stake in another, or through the creation of various forms of alliances, including trading linkages.
“The trading technology linkage will be a very potent tool to minimize threats to Asean exchanges of being marginalized considering the relatively small size of the market capitalization of individual Asean stock markets. This is particularly helpful in the case of the PSE, which lags behind at 40th slot in terms of market capitalization compared with major exchanges globally,” he said.
The linkage will be done through a common exchange gateway, which is a decentralized entry point to be set up in each exchange for brokers and investors to trade securities listed on any of the Asean exchanges.
The Asean stock exchanges are composed of Bursa Malaysia, Hochiminh Stock Exchange, Indonesia Stock Exchange, PSE, Singapore Stock Exchange and the Stock Exchange of Thailand.
From:
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Fuente Triangle Realty Development Corp.
International Marketing Assistant
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