Look out for Morning Doji Star sign in stock, in this case is Noble Grp at 9-Feb 2010 with this candlestick pattern and subsequently a bullish reversal with 20% upside.

STI closed at 2,897.62 on 31-Dec 2009

The STI closed at 2897.62 on 31-Dec 09 and analyst expecting the index to reach 3038 in next 12 months and the STI ROE expecting to be at 15% for 2010 as the GDP growth is expecting to be at 3.9%.

Jean Chatzky "The Difference"Advice

Well, I 've been listening to Jean Chatzky CD - "The Difference" and I found her advices to be very interesting:
1. You need to save, be able to save at least 10 to 15 percent of your earning.

2. Take calculated risk, in doing your reseach before investing in stock or ETF.

How to know a stock is at a fair value?

6 signs of an economic rebound

To get a read on business sentiment, Behravesh suggests looking at the Institute for Supply Management's nonmanufacturing index, a monthly survey of conditions in the service sector, which accounts for 80% of jobs. A reading below 50 is typically regarded as a recession signal; the lower it goes and the longer it stays down, the more severe the slump. Once it returns to 50-plus territory, a rebound is likely.

During the brief recession of 2001, the index dropped below 50 just as the slowdown started and hovered between 45 and 50 for most of the next eight months. A month before the recession ended, the index rose sharply to just under 50 and soon stabilized in the low 50s.

For a second opinion: Look to the real estate market. "Housing is what got us into this recession," says Gus Faucher, director of macroeconomics at Moody's Economy.com. "In terms of what's going to get us out of it, we're going to be looking for a bottom in the housing market."

How do you spot that? Brush up on supply and demand. Historically, the inventory of homes on the market - particularly how many months it would take to sell it off - has soundly predicted home prices. Six months of inventory appears to be the sweet spot. In 1996 inventory fell below six months and dropped for much of the decade - and prices climbed steadily.

What they're saying now: A mixed outlook. For March the ISM nonmanufacturing index stood at 49.6 - up from the precipitous drop to 44.6 in January but still below 50 for the third straight month.

"If the index goes to 40 and stays there, we're looking at a much deeper recession," says Behravesh. "If the number goes back up to 50 and remains at those levels, that's definitely a signal that things are going to get better." Housing inventory, however, has recently hit nearly 10 months' worth - bad news for prices and growth.

To keep track: The ISM nonmanufacturing index is released on the third business day of every month. It's widely reported in the press; or you can find the releases in the ISM Report on Business section of the Institute for Supply Management's Web site.

As for the real estate inventory yardstick, the National Association of Realtors puts out the data monthly (usually between the 22nd and 25th). Look in the Research section on its Web site.

The wild cards: As Federal Reserve governor Kevin Warsh recently quipped: "If you've seen one financial crisis, you've seen one financial crisis." Indeed, this slowdown has seen a massive credit crunch, a free-falling dollar and record oil prices. At the same time, exports to China and India are helping U.S. businesses offset weakness at home. Any or all of these factors could cloud the rebound picture.

STI Head and Shoulder - 200508

Price to Book ratio and PE ratio

My rule of thumb for P/B ratio is:

• P/B less than 2 implies chances of undervaluation
  
• P/B between 2 and 3 indicates possible fair valuation
• P/B more than 3 probably indicates over valuation, anything above 5 possibly means grossly overvalued
  

My rule of thumb for P/E ratio is:

• P/E less than 10 implies chances of undervaluation
  
• P/E between 10 and 20 indicates possible fair valuation
• P/B more than 20 probably indicates over valuation, anything above 50 possibly means grossly overvalued

The Little Books That Builds Wealth by Pat Dorsey

Chapt 12 - What is a moat worth?
Even the best company will hurt your portfolio if you pay too much for it

Bottom line
1. A company's value is equal to all the cash it will generate in the future.That's it.

2. The fourth most important factor that affect the valuation of any company are how much cash it will generate(growth), the certainty attached to those estimated cash flows(risk), the amount of investment needed to run the business(return on capital), and the amount of time the compnay can keep competitors at bay(economic moat).

3. Buying stocks with low valuations helps insulate you from the market's whims, because it ties your future investment returns more tightly to the financial performance of the company.

Chapt - 13
Tools for valuation - How to find stocks on sale

The bottom line
1. The price-to-sales ratio is most useful for companies that are temporily unprofitable or are posting lower profit margins than they could.If a company with the potential for better margins has a very low price-to-sales ratio, you might have a cheap stock in your sights.

2. The price-to-book ratio is most useful for financial services firms, because the book vaule of these companies more closely reflects the actual tangible value of their business.Be wary of extremely low price-to-book ratios, because they can indicate that the book vaule may be questionable.

3. Always be aware of which "E" is being used for a P/E ratio, because forecasts don't always come true. The best "E" to use is your own: Look at how the company has performed in good times and bad, think about whether the future will be a lot better or worse than the past, and come up with your own estimate of how much the company could earn in an average year.

4. Ratio of price to cash flow can help you spot companies that spit out lots of cash relative to earnings.It is best for companies that get cash up front, but it can overstate profitability for companies with lots of hard assets that depreciate and will need to be replaced someday.

5. Yield-based valuations are useful because you can compare the results directly with alternative investments, like bonds.

Lesson from Sub-prime crisis

From Richard Scully NCR Research 04-Apr 08
1. First sign of trouble, hit the door
2. For current stock pick, look for stock that has dropped 50 to 70 % from previous high.
3. Look for stock with single PE.
4. Look for stock that is cash rich.

Lead From Warren Buffet and Peter Lynch

Stock Pick 2008

YangZiJiang US$1.36 billion contract clinched on 21st Dec 2007

DJIA up 331 points on 28.11.07

DJIA up 331 points on 28.11.07, see whether it can cross the 22

ma - 13278 pts for tonight trade(29/11)

PEG

Price/Earnings To Growth (PEG Ratio)
A ratio used to determine a stock's value while taking into account earnings growth. The calculation is as follows:

PEG is a widely used indicator of a stock's potential value. It is favored by many over the price/earnings ratio because it also accounts for growth. Similar to the P/E ratio, a lower PEG means that the stock is more undervalued.Keep in mind that the numbers used are projected and, therefore, can be less accurate. Also, there are many variations using earnings from different time periods (i.e. one year vs five year). Be sure to know the exact definition your source is using.

PEG rato = Price/Earning Ratio
Annual EPS Browth


How The PEG Ratio Can Help Investors
The PEG (price/earnings to growth) ratio is a tool that can help investors find undervalued stocks. It's not as well known as its cousins, the P/E and P/B ratios, but it is just as valuable. When used in conjunction with other ratios, it gives investors a perspective of how the market views a stock's growth potential in relation to EPS growth.


What the PEG Ratio IsThe PEG ratio compares a stock's price/earnings ("P/E") ratio to its expected EPS growth rate. If the PEG ratio is equal to one, it means that the market is pricing the stock to fully reflect the stock's EPS growth. This is "normal" in theory because, in a rational and efficient market, the P/E is supposed to reflect a stock's future earnings growth. If the PEG ratio is greater than one, it indicates that the stock is possibly overvalued or that the market expects future EPS growth to be greater than what is currently in the Street consensus number. Growth stocks typically have a PEG ratio greater than one because investors are willing to pay more for a stock that is expected to grow rapidly (otherwise known as "growth at any price"). It could also be that the earnings forecasts have been lowered while the stock price remains relatively stable for other reasons.If the PEG ratio is less than one, it is a sign of a possibly undervalued stock or that the market does not expect the company to achieve the earnings growth that is reflected in the Street estimates. Value stocks usually have a PEG ratio less than one because the stock's earnings expectations have risen and the market has not yet recognized the growth potential. On the other hand, it could also indicate that earnings expectations have fallen faster than the Street could issue new forecasts.It is important to note that the PEG ratio cannot be used in isolation. As with all financial ratios, investors using PEG ratios must also use additional information to get a clear perspective of the investment potential of a company. Investors must understand the company's operating trends, fundamentals and what the expected EPS growth rate reflects. Additionally, to determine if the stock is overvalued or undervalued, investors must analyze the company's P/E and PEG ratios in relation to its peer group and the overall market. The GE ExampleWe will use General Electric (GE) as a brief example. GE is currently trading at $31 per share and the Street consensus estimate for this year's (2002) EPS was $1.65. This earnings forecast represents 17% growth from the previous year's (2001) EPS of $1.41. The current P/E on 2002 estimated EPS is 18.8x ($31 divided by $1.65). This results in a PEG ratio of 1.11 (18.8 divided by 17). One interpretation of this PEG ratio being greater than one is that the stock retains its "growth" classification, despite the recent bad news surrounding GE, because it is still expected to outperform the rest of the market. Another hypothesis is that institutions are reluctant to sell because GE is considered a core holding and there is currently nothing to replace GE in their portfolios; however, a "normal" stock under normal circumstances would experience a more significant decline in the share price.
FREE Report: 7 Things Every Investor Must Know!The Investopedia Advisor analyst team wants to share with you 7 time tested tenets that they use to uncover market stomping stock ideas. This is a must-read report for anyone serious about controlling their financial destiny. Click here to access your FREE report online right now!A comparison of GE's PEG to other indexes shows that the market is not expecting much from GE. The current PEG ratio for the Dow Industrials is 1.30 and indicates that the market expects more out of the Dow index than from GE. The PEG ratio for the S&P 500 is 1.88 and reflects the market's continued demand for growth at any price.Based upon this limited analysis, we can conclude that, despite GE's current challenges, the stock still commands somewhat of a premium PEG ratio (1.10). The market, however, will pay more for the potential growth in the Dow (1.30) than for GE. We can also conclude that, despite the recent crash, the S&P 500 still commands top dollar (1.88) for each percentage of potential future earnings growth.Is GE undervalued or is it the last blue chip to succumb to a slow and painful death like Cisco's? Finding that answer requires more digging on your part.

-----------------------------------------
Move Over P/E, Make Way For The PEG
Updated March 27, 2007It is common practice for investors to use the price-to-earnings ratio (P/E ratio or price multiple) to determine if a company's stock price is over or undervalued. Companies with a high P/E ratio are typically growth stocks. However, their relatively high multiples do not necessarily mean their stocks are over priced and not good buys for the long term.

Let's take a closer look at what the P/E ratio tells us:
P/E Ratio =
Market Value per Share

Earnings per Share (EPS) There are two primary components here, the market value (price) of the stock and the earnings of the company. Earnings are very important to consider. After all, earnings represent profits, for what every business strives. Earnings are calculated by taking the hard figures into account: revenue, cost of goods sold (COGS), salaries, rent, etc. These are all important to the livelihood of a company. If the company isn't using its resources effectively it will not have positive earnings, and problems will eventually arise. Besides earnings, there are other factors that affect the value of a stock. For example:
Brand - The name of a product or company has value. Brands such as Proctor & Gamble are worth billions.
Human Capital - Now more than ever, a company's employees and their expertise are thought to add value to the company. It's about time!
Expectations - The stock market is forward looking. You buy a stock because of high expectations for strong profits, not because of past achievements.
Barriers To Entry - For a company to be successful in the long run, it must have strategies to keep competitors from entering the industry. Coca-Cola, for example, has built a very extensive distribution channel--anybody can make pop, but getting that product to the market like Coke does, is very costly. All these factors will affect a company's earnings growth rate. Because the P/E ratio uses past earnings (trailing twelve months), it gives a less accurate reflection of these growth potentials.The relationship between the price/earnings ratio and earnings growth tells a much more complete story than the P/E on its own. This is called the PEG ratio and is formulated as:
PEG Ratio =
Price/Earnings Ratio

Annual EPS Growth*
*The number used for annual growth rate can vary. It can be forward (predicted growth) or trailing, and either a one- to five-year time span. Check with the source providing the PEG ratio to see what kind of number they use. Looking at the value of PEG of companies is similar to looking at the P/E ratio: a lower PEG means that the stock is more undervalued. Comparative ValueLet's demonstrate the PEG ratio with an example. Say you are interested in buying stock in one of two companies. The first is a networking company with 20% annual growth in net income and a P/E ratio of 50. The second company is in the beer business. It has lower earnings growth at 10% and its P/E ratio is also relatively low at 15.
FREE Report: 7 Things Every Investor Must Know!The Investopedia Advisor analyst team wants to share with you 7 time tested tenets that they use to uncover market stomping stock ideas. This is a must-read report for anyone serious about controlling their financial destiny. Click here to access your FREE report online right now!Many investors justify the stock valuations of tech companies by relying on the assumption that these companies have enormous growth potential. Can we do the same in our example? Networking Company: P/E ratio (50) divided by the annual earnings growth rate (20) = PEG ratio of 2.5 Beer Company: P/E ratio (15) divided by the annual earnings growth rate (10) = PEG ratio of 1.5 The PEG ratio shows us the sexier high-tech company, compared to the beer company, doesn't have the growth rate to justify its higher P/E, and its stock price appears overvalued, particularly when this comparison is made.Take Google, for example, which provides us with an opposing angle of vision when applying the PEG ratio to its current pricing. Google's share price, since its IPO, has headed straight for the stratosphere. At time of writing it had a P/E of 47 and an expected earnings growth next year of 33%, which gives us a PEG of 1.40. The Nasdaq 100 Index a P/E of 30 and an estimated earnings growth rate of 15%, which produces a PEG of 2.0. Judging by the PEG ratio, Google is relatively undervalued compared to its pricier Nasdaq 100 benchmark. . ConclusionSubjecting the traditional P/E ratio to the impact of future earnings growth produces the more informative PEG ratio, which provides more insight about a stock's current valuation. By providing a forward-looking perspective, the PEG is a valuable evaluative tool for investors attempting to discern a stock's future prospects

my hot spot

rererererrr

DOW Worst Days

Brutal sell-off on Wall Streets on 19/10/2007, which registered its third worst day of the year '07.

Fears about credit and housing sector, earnings, record-high oil prices, slide in dollar.And what the Fed would do next is to cut interest by 0.25 basis pt, understand Fed do not want to see itself as though it is encouraging speculators of the housing market, neither, does it want the fears about credit and housing sector to linger on.

Flight to Under Value and Reit Stocks

Chinese Equity Funds Stole Limelight In First 3Q of 2007 - 14/10/07

Chinese Equity Funds Stole Limelight In First 3Q of 2007 - 14/10/07

http://www.fundsupermart.com/main/research/viewHTML.tpl?lang=en&articleNo=2336

One market occurrence which definitely left a deep impact on investors during the third quarter this year would be the sharp correction in the global equity markets, spanning end-July to mid-August. Investors were shaken by worries over the US sub-prime credit issues — the result of offering easy credit to US mortgage borrowers with bad credit track record in the last few years. However, market sentiments turned for the better when the Federal Reserve decided to cut target benchmark rates by a higher-than-expected 50 basis points to 4.75% on 18 September. Following this swift twist of market climate, the performance of a number of equity funds has also improved. In the first three quarters of 2007, 86% of the 336 funds distributed on our electronic platform had delivered positive returns.
Unlike the first two quarters of the year in which Southeast Asian equity funds performed very well, funds which invest in China and Greater China equities came out tops in the best-performing funds scoreboard for the first three quarters of 2007. On our platform, the best-performing Chinese equity fund in the period was the DWS China Equity Fund Class A SGD — the fund returned a stunning 68.9%. All returns are in SGD terms.
Table 1: Top-Performing Funds In First 3Q of 2007
Fund Name
Returns As At end-September 2007
Sector / Regions
DWS China Equity Fund Class A SGD
68.9%
China
HGIF Chinese Equity-A SGD
60.5%
China
Fidelity China Focus USD
60.0%
China
UOB United Greater China Fund
57.9%
Greater China
SGAM Golden China Fund S$
56.0%
Greater China
Fidelity S East Asia A-SGD
52.7%
Asia ex-Japan
United Asian Growth Opportunities
51.3%
Asia ex-Japan
PRU Dragon Peacock Fund
50.8%
India/China
Franklin Templeton F-Asian Equity
50.4%
Asia ex-Japan
DWS Noor China Equity CL A USD
50.3%
China
Lion Capital China Growth
47.8%
China
First State Regional China
47.0%
Greater China
ABN AMRO Brazil Equity Fund A USD
46.7%
Brazil
First State Global Resources
45.2%
Global Resources
Legg Mason Asian Enterprise
45.0%
Asia ex-Japan
Franklin Templeton F-China
44.6%
Greater China
Fidelity Greater China USD
44.1%
Greater China
Schroder Greater China Fund
43.3%
Greater China
Legg Mason SEA Special Sits
42.9%
Southeast Asia
UOB United Asia Fund
42.7%
Asia ex-Japan
Source: Fundsupermart.com compilations; performance figures in the tables are calculated in SGD terms using bid-to-bid prices, with any income or dividend reinvested.
The strength in Greater China and Chinese equity funds corresponds to the strength of their underlying equity markets' performance, represented by the Hang Seng Mainland Composite Index (HSMLCI) — Fundsupermart.com's proxy for Chinese equities. As mentioned in the report ' Top Performing Markets in the First Three Quarters of 2007', Chinese equities were the top scorer among all other equity markets we cover, chalking up a return of 54.4% in the first 3Q of 2007. Of the top 20 best-performing funds featured on Table 1, 11 are either invested in Chinese or Greater China equities.
Three of the best-performing Chinese equity funds include the DWS China Equity Fund Class A, the HGIF Chinese Equity-A SGD and the Fidelity China Focus USD. In the first nine months of the year, these funds returned more than 60%. Referring to our benchmark index for Chinese equities, the telecommunications, banking and finance as well as the property sectors were the stronger performers within the index. An important piece of news which has boosted market sentiment, in our opinion, was the Chinese government's pilot scheme to allow larger fund inflows from the Mainland Chinese investors into the Hong Kong Exchange. Due to the restrictions placed on the Mainland Chinese investors to invest their monies outside of the country, both the Shanghai and Shenzhen stock indices have skyrocketed in the past one year, as most retail investors could only invest in stocks listed in these exchanges.
In SGD terms, the Shenzhen and Shanghai A-share indices were up 184.3% and 108.2% respectively as at end-September 2007. The estimated PE for both indices was at 44.4X and 53.6X respectively, based on 2007's earnings growth — both at their all-time highs. At one glance, investors might be concerned about whether these two markets are turning bubblish; the silver lining, however, is that the Chinese equity funds distributed on our platform are largely invested in Hong Kong-listed Chinese companies and H-shares. Based on the factsheets, and as at end August 2007, these funds invest approximately 90% to 98.2% into H-shares or Chinese companies listed in the Hong Kong market.
Based on our PE estimates, the valuations for the H-shares are far lower than those of the A-shares listed in the Shenzhen and Shanghai stock exchanges. The estimated PE for the HSMLCI were 27.5X and 23.4X for 2007 and 2008 respectively (as at end-September 2007). Thus, the H-shares appear to be more attractively valued at this point of time, and we maintain a 3-star or 'Attractive' rating on the Chinese equity markets (primarily H-shares and Chinese companies listed in the Hong Kong market). However, investors who wish to invest in Chinese equity funds should be aware that these funds would experience greater volatility compared to the market conditions a few years ago, as the Chinese bourses are no longer trading at inexpensive levels.
Aside from the Chinese equity funds, other funds listed on the list of top 20 best-performing funds include equity funds which invest in regions including Southeast Asia, Asia ex-Japan, India/China and Brazil. On a year-to-date basis, Asia ex-Japan equity funds were the best-performing regional equity funds.What About The Regional Funds?
The Asia ex-Japan equity funds delivered a strong average return of 33% in the first nine months of 2007 – the highest among all regions we cover. Two of the best-performing Asia ex-Japan equity funds on our platform include the Fidelity South East Asia A-SGD and the United Asian Growth Opportunities Fund; as at end-September, these funds returned 52.7% and 51.3% respectively. The next best performing regional equity funds would be the emerging market equity funds, which returned an average of 25.5% in the first nine months of the year. The Fidelity Emerging Market A-SGD Fund, for instance, returned 31.3% during this period. All regional equity funds enjoyed positive returns, except for the Japanese equity funds which have lost an average of 5.7%. Only the regional funds distributed on the Fundsupermart.com platform have been taken into consideration when computing the average returns figures above.
Table 2: Performance of the Regional Equity Funds
Region
Average Fund Returns (%)
Index
Performance (%)
Asia ex-Japan
33.0%
MSCI Asia ex-Japan
31.8%
Emerging Market
25.5%
MSCI Emerging Markets
27.7%
Europe
7.9%
DJ Stoxx 50
7.9%
US
6.3%
S&P 500
4.1%
Japan
-5.7%
Nikkei 225
-2.2%
Source: Fundsupermart.com compilations; the performance figures in the tables are calculated in SGD terms using bid-to-bid prices, with any income or dividend reinvested.Japanese Equity & European Property Funds Were Disheartening
Of the ten worst-performing funds on our platform, two were invested in property equities and five were invested in either Japanese equities or Japanese small- and mid-sized company equities. To be specific, two of the worst-performing funds were the Henderson European Property Securities and PRU Japan Smaller Companies fund; the funds lost 16.4% and 19.1% respectively.
The Tokyo Stock Exchange (TSE) 2nd Section Index, which represents Japanese smaller-cap equities, tumbled 12.4% in the first nine months of 2007. Small-to-mid cap Japanese stocks fared poorer than the large caps, represented by the Nikkei 225 index; the index lost only 2.2% in the same period. The weak consumer confidence and capital spending had also kept market sentiments low. Corporate capital spending declined in the second quarter and consumer confidence remained generally subdued as a result of higher taxes and falling wage levels. With the estimated market PE at 23.7X and 21.9X for 2007 and 2008 respectively (fiscal year ending March 2008 and 2009), we think the market remains reasonably priced. However, as we find other regional markets more attractive, we maintain a neutral view on the Japanese equity market.
European and Global Property funds have been hit hard this year. European properties did not do well this year as the European Central Bank (ECB) hiked their benchmark refinancing rate from 3.5% at end-December 2006 to 4.0% as at end-September 2007. The European benchmark rates have been rising to a higher-than-expected level. Thus, investors of the European property sector equities might have grown wary of the potential impact of these rate hikes on the borrowers' ability to repay their property loans, and feel that the yield premium (on top of the risk-free rate of return in Europe) offered by European property Real Estate Investment Trusts (REITs) may not be attractive enough to compensate investors for the additional risks they are taking on when investing in European property equities. These and other reasons might have prompted investors of European equities to switch to other sectoral plays within the region.
On global property funds, as many of these have a higher proportion of their assets in American property, they have thus been affected by the contagion effect of the US sub-prime mortgage crisis. It is important to consider that the US property prices have rallied over the past 5 years, owing to the initial favourable credit environment in the US after the 911 Incident, where buyers were able to buy properties at very low interest rates. However, the property market has seen declines from its highs, as highly leveraged borrowers were hit hard by the rising interest rates. Property shares also dived lower by momentum selling when the market panic set in. Commercial REITs — which most global property funds invest in — are now highly priced and offer low yields, making them unattractive for the investors. We maintain a negative view on the outlook for the global property funds, especially so when such funds invest a large proportion of their assets in US properties.
Table 3: Ten Worst-Performing Funds in First 3Q of 2007
Fund Name
Returns
Sector / Regions
Schroder Emerging Markets Bond Fund
-4.3%
Emerging Market Bonds
DBS Global Property Securities Fund
-4.7%
Global Property
Franklin Floating Rate Fund-Class A
-5.9%
Floating Rate Bonds
Franklin Templeton F-Japan
-6.5%
Japan
Henderson Japanese Equity
-8.6%
Japan
ABN AMRO GEM Bond USD A
-9.4%
Emerging Market Bonds
Aberdeen Japan Equity
-10.1%
Japan
DWS Japan Small/Mid Cap A SGD
-15.7%
Japanese Small-Mid Cap
Henderson European Prop Securities
-16.4%
European Property
PRU Japan Smaller Companies Fund
-19.1%
Japanese Small-Mid Cap
Source: Fundsupermart.com compilations; the performance figures in the tables are calculated in SGD terms using bid-to-bid prices, with any income or dividend reinvested.
The Best-sellers
Table 4 shows the list of regional or sectoral funds which have garnered the highest levels of subscription at Fundsupermart.com. China/Greater China and Asia ex-Japan equity funds — which were the strongest performing funds in the first three quarters — were the most popular funds among our investors. Southeast Asian, Malaysian and Singaporean equity funds were also some of the most favoured among our investors.
One very well-received fund not shown on this list was the Cash Fund; this is a fund used as a parking tool for the investors when they switch-sell out of any of their funds or take profits. Since its inception on 23 January 2007, the size of the fund has upsurged to S$174.2 million as at end-August 2007.
The most popular investment regions by volume examines the funds with the top sales volume in the first three quarters of the year. This serves as a reference to the level of interest which the investors have on these funds which are distributed on our platform; however, investors are reminded not to solely consider the information published in this table when deciding which fund to invest in. It would be advisable for investors to find out more on our research views toward some of these markets, available in the 'Markets Update' section of our web portal.
Table 4: Most Popular Investment Regions by Volume in First 3Q of 2007
Region / Sector
China / Greater China
Asia ex-Japan
Asia Balanced
Malaysia
Southeast Asia
Singapore
Source: Fundsupermart.com compilations
Greater China & Asia ex-Japan Equities Remain Attractive
Chinese equity funds stood resilient during the recent correction led by the sub-prime woes in the mid-July to early August period. Out of the twenty best-performing equity funds on our platform, more than half were either invested in the Chinese or Greater China equities. The best-performing Chinese equity fund was the DWS China Equity Fund Class A SGD which returned 68.9% in the first nine months of the year. As the Chinese equity funds on our platform are largely invested in H-shares or Chinese companies listed in the Hong Kong bourse, instead of the A-shares listed in the Shenzhen and Shanghai exchanges, we think Chinese equities will remain attractive. Based on 2007's earnings growth, the estimated PE for the HSMLCI is at 27.5X — a level more attractive than the A-shares in the Shenzhen and Shanghai markets. The next best-performing regional equity funds were the Asia ex-Japan equity funds, which were driven by the strong performance of Greater China and Southeast Asian equities. The estimated PE of the Asia ex-Japan region is 19.1X and 17.2X for 2007 and 2008 respectively, and their earnings growth remain at healthy levels of 17.9% and 14.5% respectively for both years. We are of the view that the fundamentals still remain sound for the Asia ex-Japan equities, and hence, we have retained our 'Attractive' rating for the region.