,Singapore

Rising US yields pose threat against Asean markets

Are Asean stocks losing their lustre?

According to BNP Paribas, one of the main reasons for increased investor interest in Asean markets was the availability of relatively-safe high-yielding stocks, particularly telecoms and financials.

The dividend yields offered by these stocks (5-7%) were viewed as attractive in an environment where US bonds offered very low yields (1.5-2%).

With rising US yields, these stocks become less attractive. Many investors are still positioned in Malaysian banks, Singapore REITs and Asean telcos purely because of dividend yield considerations. 

"We would caution against such exposure because dividend yield plays are becoming increasingly unattractive," says BNP Paribas.

Get Investment Asia in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

The Lion City also has the highest insurance penetration amongst the six markets at 5.9%.
On back of a modest increase in US interest rates.
As Asian hedge funds outperformed peers.
Lousy start for 2014, says analyst.
Santa is on his sleigh and the elves won't be back until Jan 6.