Singapore’s solid equity market performance is facing 2 risks, says Morgan Stanley

SINGAPORE (Aug 17): Two positive pillars of Singapore’s seemingly-strong equities market have weakened, according to equity strategists of financial services firm Morgan Stanley.

This comes even as MSCI Singapore’s next 12 months (NTM) P/E nears a four-year high at 14 times, and is up 14.5% in the year to date (YTD) to lead Asean markets though underperforming MSCI Asia ex-Japan (AxJ) by 370 basis points (bps).

In a Thursday report, equity strategists Sean Gardiner and Aarti Shah recall the past year as a positive one for the Singapore market, with return of earnings growth and positive estimate revisions after five years of expectations erosion.

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