1Q22 Market Report Card Can ASEAN and Brazil continue t | FSMOne SG - Research Highlights

1Q22 Market Report Card

Can ASEAN and Brazil continue to outperform?

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• Global equities had a rough start to 2022, as seen by the -4.8% decline of the MSCI ACWI index in 1Q22. On a country level, the top-performing markets in 1Q22 (in SGD terms) were Brazil (+34.7%), Singapore (+9.6%), and Indonesia (+7.8%).

• Brazil: We continue to hold a positive view on Brazilian equities, as earnings are likely to see further positive revisions due to higher commodity prices. Elevated commodity prices tend to improve market sentiment and consequently inflows for commodity exporters such as Brazil, thus supporting the market.

• Singapore: We remain optimistic on the STI’s ability to outperform its peers in the current macro environment. Banks and REITs, which make up about 60% of the index are expected to benefit from rising interest rates and the continuing economic recovery in the near term.

• Indonesia: Indonesia has started to relax domestic restrictions and more recently travel restrictions, which should have a positive impact on its economy. Strong export growth and consumption should also contribute positively to the economy.

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