Macro Research 2Q 2021 Market Report Card – Top Performing Eq | FSMOne SG - Research Highlights

Macro Research

2Q 2021 Market Report Card – Top Performing Equity Markets

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• Global equity markets continued advancing to record highs in 2Q21, gaining +8%. Our top three performers in the second quarter were Brazil (+23.6%), Russia (+14.5%), and Taiwan (+11.0%).

• Taiwan - While we are unlikely to see Taiwan equities replicate the stellar performance seen in ’20 (over +30%) and 1H21 (over +24%), we remain bullish on a strategic basis and expect decent upside potential given very favourable structural tailwinds and limited downside risks.

• Russia - We believe the potential upside - both price and dividend - provides a good compensation for the current mild political risk climate. Having said that, rising energy prices have driven much equity upside in 1H21 (over +24%). We have dialled back some optimism but remain broadly positive moving ahead.

• Brazil - We see Brazilian equities as a high-risk high-reward play that is skewed positively - towards the ‘reward’ side - due to positive market and idiosyncratic factors. Equity outlook remains constructive, especially amongst the EMs, with one of the largest upside potential.

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