Macro Research 3Q21 Market Report Card – Interesting Opport | FSMOne SG - Research Highlights

Macro Research

3Q21 Market Report Card – Interesting Opportunities from Asia to Europe

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• Global markets (MSCI ACWI Index) were flat in 3Q21 (+0.04% in SGD terms). Our top 3 performers (in SGD terms) were India (+14.2%), Russia (+10.2%), and Indonesia (+8.2%).

• India: We are neutral on India. While we think that its outlook remains robust, we think that investors have priced in an overly bullish scenario, resulting in very stretched valuations.

• Russia: We are positive on Russia, due to its large composition of oil and gas (O&G) companies in the index. We think energy prices will remain supportive of Russian equities in the months to come, and the attractive dividends will add on to the already positive price upside forecasted.

• Indonesia: We are also bullish on Indonesia, as we think that the reopening of the economy should be a big boon to Indonesian equities. With the second wave of COVID-19 behind us, we are optimistic on domestic consumption, which should support domestic equities going ahead.

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