Left Brain Right B - the DBS Vickers Securities Equities Research

Regional Equity Strategy 4Q 2009
Strategy Overview: Asia Equity
Thailand - Poised for domestic and external upturn
Thai market has performed remarkably well since we upgraded
the market to Neutral last quarter. Improving economic
numbers, ample liquidity, easing political tension and strong
foreign funds flow contributed to the 16% performance for
the quarter. We continue to expect Thailand to trade in line
with the region given the low interest rate environment and
demand driven by fiscal boost. An improving external
environment should also lift Thailand's growth prospects. The
big picture we are expecting is one of a large sequential pickup
in GDP in 3Q, similar to that witnessed in 2Q, followed by a
moderation in growth pace to a circa 4% annual rate from 3Q
onwards. We recommend an increased position in Banks,
property and selected undervalued Energy stocks. We choose
Thailand as a valuation laggard and recommend Overweight in
the fourth quarter.
Taiwan and Korea benefiting from synchronized global
upturn
In view of the synchronized global upturn scenario, we are
raising our recommendation for Taiwan and Korea to
Overweight. This is in view of the proportionately larger
exposure in Industrials and technology, which should benefit
from the upturn. A stronger won forecast now also justifies an
upgrade in the Korean market as investors seek both currency
and stock gains which move closely in tandem in the relatively
more open financial account.
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