Despite subdued sentiment due to erratic global financial markets, the outlook for capital markets in Southeast Asia remains positive, said a senior banker from Credit Suisse.
“Southeast Asia has the best position, structurally, relative to the rest of the world,” said Helman Sitohang, Co-head of Investment Banking for Asia-Pacific at Credit Suisse.
For example, the region’s currencies have not appreciated in the same manner as it has in Brazil, which has negatively affected the economy there, he noted.
Sitohang added that confidence in the region has not suffered, unlike in other parts of the world.
“Southeast Asia’s stock markets are still among the world’s best performers for the year to date. People are generally cautious, but their confidence is not as shaken as it was in the previous crisis.”
While some of the world’s major currencies like the Euro and US dollar are hurting, stocks and bonds issued in local currencies are drawing much more interest from foreign investors.
“The appetite for local-currency bonds in this part of the world is definitely quite strong,” Sitohang said.
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