Page 7 - 2Q2021 RETAIL WEALTH ADVISORY Playbook

Region / Previous Current Deliberation
Country Stance Stance

 While vaccine news flow is encouraging, Hong Kong’s
economy that has high tourism exposure can take longer
to recover.
 We see limited downside risk due to its undemanding
Hong Kong Neutral Neutral
valuations.
 The revamp of Hang Seng Index to include more
technology, internet and healthcare stocks could have a
long-term positive impact on the Hong Kong market.
 North Asian economies were relatively unscathed by the
Korea Overweight Overweight
pandemic due to better management.
 Both countries could be the beneficiaries of the
adaptation of technology.
 While South Korea’s 4Q20 earnings results were
Taiwan Neutral Underweight disappointing, the positive economic growth outlook
should reverse the negative trend.
 We expect Taiwan equities to underperform their Asian
peers, given their lofty valuation.

 The influx of liquidity has buoyed India’s stock market
since March 2020.
 Daily cases are reducing, and the economy is expected to
normalise and return to positive territory by mid-2021.
India Neutral Neutral  Downside risk remains for India equities as uncertainties
surrounding inoculation remains.
 Downgrades in earnings have stabilised, but valuation
remains demanding and may be susceptible to earnings
disappointment.
 We turn positive on Singapore and Malaysia equities,
Singapore Neutral Overweight which can benefit from the cyclical recovery.
 Corporate restructuring activities could drive further re-
rating of the Singapore Market.
 Improving outlook for banks and plantation sectors could
Malaysia Neutral Overweight offset the headwinds faced by glove makers in Malaysia.
 Malaysia equities have undemanding valuations and a low
level of foreign ownership, which reduces downside risk.
 We expect Thailand equities to underperform their Asian
Thailand Underweight Underweight peers, given their lofty valuation.

 Stringent pandemic lockdown measures have hit the
economy.
 Gradual easing in mobility restrictions and reopening of
Philippines Neutral Neutral the domestic economy could help pave a recovery path.
 The government has allotted mega infrastructure
projects, which could lend support to growth.
 Valuation is inexpensive.
 Economic growth could rebound in 2021.
 The passing of the Omnibus law can help attract new
Indonesia Neutral Neutral investments and long-term economic benefits.
 Fiscal and monetary support could help cushion growth
impact.

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