Salomons sees mixed Asia equities earnings growth<\/p>\n
SINGAPORE (Reuter): Salomon Brothers said yesterday that the
\nearnings growth outlook in 1996 in equity markets in southeast
\nAsia and parts of Asia differs significantly for each market.<\/p>\n
But most markets are expected to post strong earnings growth
\nnext year, it said in a report.<\/p>\n
"Growth in Hong Kong is low in absolute terms but momentum
\nshould improve as 1996 unfolds," it said.<\/p>\n
Singapore should post growth in the mid-teens in 1996 but
\ninitial forecasts for 1997 point to a decline to the low teens.<\/p>\n
On Malaysia, it said earnings growth should decelerate to low
\nabsolute levels in the next two years.<\/p>\n
"After a slow year in 1995, earnings momentum in Thailand
\nshould improve in 1996 and strong absolute growth rates look
\nachievable," it said.<\/p>\n
Indonesia, it said, should post further rapid earnings
\nincreases the next two years. "Earnings estimates in the
\nPhilippines also point to strong growth, but we expect some
\ndownward adjustment to estimates in response to higher rates and
\nrecent natural disasters," Salomon Brothers said.<\/p>\n
It said earnings growth in Korea is slowing but absolute
\nlevels should remain high. Taiwan profits should slow next year
\nand then rebound in 1997, it said.<\/p>\n
Salomon Brothers also said it expects tight monetary
\nconditions in most of the ASEAN (Association of Southeast Asian
\nNations) economies during the first half of 1996.<\/p>\n
It said in a research report that this is a consequence of the
\nexternal imbalances and inflationary pressures that have garnered
\nattention recently.<\/p>\n
ASEAN groups Brunei, Indonesia, Malaysia, the Philippines,
\nSingapore, Thailand and new member Vietnam.<\/p>\n
"We still believe short-term rates will ease downwards later
\nin the year as current account deficits begin to reduce, but
\nfurther upward rate pressure is likely in the near term," Salomon
\nBrothers said.<\/p>\n
In contrast, rates in Korea and Taiwan were likely to fall
\nbecause of different inflation and current account conditions
\nand, in Taiwan's case, very low money supply growth.<\/p>\n
"Hong Kong's rates should echo those in the United States,
\nwhere we continue to expect Fed easing," it said.<\/p>\n
Meanwhile, Paul O'Donnell, director of Bankers Trust (BT) Fund
\nManagers, said in Hong Kong yesterday that Asian equity markets
\nhave been volatile recently, but the overall outlook is
\npositive.<\/p>\n
"We have had a couple of years of the doldrums, but I think
\nthis is coming to a close. If there is a time to get in, it
\nprobably is right now," said O'Donnell.<\/p>\n
"While there has been overheating in some economies,
\nparticularly Malaysia, Thailand, Indonesia and the Philippines,
\nwhere strong investment is causing current account deficits to
\nblow out, the respective governments have taken measures to
\naddress these concerns," said O'Donnell.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/salomons-sees-mixed-asia-equities-earnings-growth-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}