Major Southeast Asian stock markets are trading at
attractive price-to-book valuations close to or below their 2011
lows and investors should find value plays in blue chips
supported by domestic economy and earnings, CIMB says.
The broker is "overweight" on Indonesia and Singapore, which
stand out in terms of valuations, according to its ASEAN value
hunting rules report. It rated Malaysia and Thailand "neutral"
and the Philippines "underweight".
Indonesia's estimated price-to-book value of 2.4-2.8 times
for 2012-13 was around 16 percent below the 2003-07 cycle mean.
Singapore's estimated price-to-book of 1.3 times for 2012 was
about 38 percent below the 2003-07 cycle, it said.
Consumer and commodities-linked stocks are among CIMB's top
picks as their fundamentals remain strong and valuations are
Indonesian consumer stock Indofood Sukses Makmur
, for instance, traded at a price-to-book ratio of 2.06
times compared with a low in 2011 of 2.08 times, it said.
Singapore commodity firm Olam International Ltd
traded at 1.36 times against a 2011 low of 1.63 times while
Thai petrochemical firm PTT Global Chemical Pcl was
at 1.32 times below a 2011 low of 1.38, it said.
1600 (0900 GMT)
(Reporting by Viparat Jantraprap in Bangkok;