Foreign Investors in Sela -sela in Asean Equity Rally – For now

Southeast Asian shares have several decent months, up around 8%. JPMorgan analysts see that the scope of this continues, and even for foreign investors, so far most of them are in between, to be involved.

Clean outflows from ASEAN are more than $ 12 billion years to date – only Indonesia who saw a fairly large entrance current – but it was not stopped by domestic investors who bought shares behind the central bank to cut interest rates, and because the tariff description was slightly clearer.

JPM considers they must continue and also say that macro conditions will be appropriate for foreign flow reversal later this year and early next year.

They said the federal reserve continued the aircraft cycle that led to downward pressure on the dollar, and relieve macro global risk could encourage the flow of entry to ASEAN.

One of the risks to that view is the soaring Chinese shares, because JPM recorded that historically investors have used ASEAN to fund China’s trade, however, they think this seems smaller given the year when it comes out.

Only popular sectors such as Bank Indonesia and Vietnam are at risk.
Source: Reuters (Alun John)