Asean stock markets highly diversified: SGX report

ONE-FIFTH of Singapore's Catalist-listed companies rake in most of their turnover from regional neighbours, according to a report from the Singapore Exchange (SGX) "My Gateway" portal, in an update on the value of Asean equities.

Singapore is the biggest intra-Asean exporter and importer of financial and transport services, as well as infocommunications technology services, the report noted.

"Like its economy, the Asean stock market is highly diversified," wrote the SGX research team.

Large-cap stocks outperformed their smaller peers in Indonesia, but it was the opposite story in Malaysia, the researchers observed.

Meanwhile, different sectors have been spurring on individual stock markets.

Basic materials was the growth driver in Indonesia, technology in Malaysia, consumer services in the Philippines and oil and gas in Thailand.

In local currencies, these sectors averaged total returns of 123 per cent on their respective bourses over the three years to Sept 30, said the report.

The SGX report added that "index providers offer multiple avenues for investing in the Asean stock markets" through regional benchmarks comprising the biggest and most liquid stocks.

The FTSE Value-Stocks Asean Index yielded total returns of 56.6 per cent in US dollar terms for the three years to Sept 30, while the FTSE Asean 40 Index posted returns of 50.6 per cent and the FTSE Asean All-Share Index generated returns of 38 per cent, the report noted.

Other regional indexes include the MSCI AC Asean Index, MSCI AC Asean Growth Index, MSCI AC Asean Value Weighted Index and the MSCI Asean High Dividend Yield Index.