Philip Chua Business Blog

Posts Tagged ‘valuations’

AMID the general optimism over equities in Asia and the emerging markets, strategists at Barclays Wealth have sounded a note of caution over valuations in Asia. This runs counter to the consensus view that Asian growth is set to outstrip that of developed economies – a point that isn’t in dispute – and that market weakness is a buying opportunity.

Says Aaron Gurwitz, Barclays Wealth managing di… more

POTENTIAL dual listings provided the main targets for yesterday’s session, following Tuesday’s explosive debut for China XLX in Hong Kong (HK). As a result, stocks such as Oceanus, China New Town, China Milk and Midas were all in play, based on hopes that if they obtain approval to list in markets such as HK or Taiwan, where valuations are higher, their prices here will have to rise.
However, if H… more

Reuters – Mohamed El-Erian, the chief executive of bond fund manager Pacific Investment Management Co, said on Tuesday that the rally in U.S. stock markets has topped out, as valuations are running ahead of fundamentals.

THE sizzling run-up in local stock prices since March is starting to ignite fears that valuations have run ahead of the economic reality.
At its current level, the Straits Times Index (STI) has rallied about 80 per cent from its March low and is up more than 30 per cent for the year.
Even after four straight days of losses and a 4.1 per cent slide last week, the index was still at 2,549.35 last Fr… more

THE Lehman Brothers collapse in September last year turned what was promising to be a bad economic downturn into a systemic crisis with the potential to rival the Great Depression. The resulting pressures on the banking system meant that by the end of 2008, credit valuations fell to unprecedented levels and were pricing in economic Armageddon.
However, policy responses extraordinary in both scope … more