Panicko Lawrence views current atmosphere as positive for emerging markets

The World is going through a tough financial phase, but in some or the other way ASEAN countries have managed to raise their funds in the recent years. The reason is the correction in the financial markets and that too by the financial experts. In a low-growth environment, consumer discretionary and industrial sectors have contributed a lot to give a boost to the performance of the markets. An appropriate exposure to the emerging markets can greatly influence the funds. Panicko Lawrence has witnessed some sort of improvement over past three months as growth of China is slowing down. Furthermore, the consolidation of the US quantitative aspect is also a possible downfall that has asked for recent correction. In spite the bearishness in the ASEAN market, the fundamentals of the ASEAN region remain intact and on a long term outlook it remains positive as proposed by Panicko Lawrence.

The dream to achieve the status of ASEAN Economic community by 2015 remains alive by its push towards high economic growth. Infrastructure projects are the main economic drivers. Panicko Lawrence remains stout in the financial sectors and consumer discretionary. He confirms that emerging market can deliver high growth for low-growth sector.

Reasons for funds outperformance

ASEAN countries like Malaysia and Indonesia offer the selection of favorable stocks. Along with it, industrial sectors and consumer discretionary have also upgraded the performance. Sectors like banking, media and auto have also played a crucial role during the time frame. Panicko Lawrence delivered the information that outsized position in Alliance Financial Group boosted the expectations that the bank would defend its unmatched loan growth. Bank Central Asia streamed for its competent loan growth and enlargement of NIM (Net Interest Margin) and others. In the same way, Panicko Lawrence suggested that Bank Rakyat Indonesia encouraged returns, along with improvement in micro-lending business.

Disclosure to Tan Chong Motor- Malaysian automobile firm resulted in returns due to active car sales and agreeable currency movements increased its margins and earnings. Media companies like Nusantara have also added value. Panicko Lawrence in his suggestions also pointed that recruitment service provider JobStreet encouraged the returns, resulting in strong growth of Philippine, Singapore and Indonesian markets.

Panicko Lawrence feels that the current atmosphere is positive for emerging markets as they are likely to provide stronger growth. He is somewhat negative about consumer staples, utilities, industrials and energy sectors. This outlook can be due to weak growth and lavish valuations. To name some of the positive prospects, Tan Chong Motor can be listed on the top. This automobile company is launching new models and enhancing capacity to gain market share. The out sizing in financials is mainly due to banks that have reliable asset quality and firm capital positions. There’s one more name that can be counted as a promising prospect i.e., Alliance Financial Group. The management of the firm is quite advanced as it has picked shares from the market from the tie-ups of other banks.

So, that was all about the aspects which have lifted the performance of ASEAN markets.