Friday, 11 July 2014

A gem in Asia ??

The past few weeks have been pretty exciting, not from the stock market but from the world cup matches, especially the humiliating loss of the Brazilian team. A team that had been well respected to the extend feared by many teams, was defeated by such a huge score. This also send us a timely reminder that anything can happen, including a correction in the current market. Bearing all these uncertainty still, where else can still give us an attractive proposition?
I am not sure if you have heard of the Trans-Pacific Partnership (TPP), if you have not, please find the explanation from here, The Economist. In the nutshell, this initiative was started in 2005, pursuing a free trade agreement among the member countries, and this is suppose to help to improve the trades of these countries. There have been numerous meetings and nothing has been concluded. Once this is eventually finalised, the trade numbers for these countries should be boosted, this also means that the stock market of the country also will benefit, and this is what we are interested.

Below is a table of the member countries and their PE ratio.

The PE ratio for these countries can be found from the source below, except for Vietnam, which is from here

Looking at the PE ratio, it is clear where you should take a closer look to determine if that country is able to reap the maximum benefit from this TPP.

1 comment:

Anonymous said...

Lowest PE Singapore and Vietnam. Go for Spore.
Not Vietnam - got burnt before. Now realise good country governance is very important. Vietnam is low for a reason.
[Singapore may also be low for a reason]