India, Malaysia priciest share markets in Asia

Reuters Bengaluru | Updated on October 03, 2019

As per Refinitiv data, the Indian equities price-to-earnings valuation increased to 16.42 from 15.98 a month earlier.

India and Malaysian equities were the most expensive in Asia on October 2, based on their price-to-earnings valuation metrics, according to Refinitiv.

Most other regional markets saw a rise in valuations over the past month, thanks to some easing U.S-China trade tensions and rate cuts by major central banks.

Also read: How Indian stock market may benefit from sell-off in US equities

A corporate tax cut announced by finance minister Nirmala Sitharaman last month to boost manufacturing and revive its weakening economy propelled Indian shares higher.

As of Wednesday, their P/E valuations increased to 16.42 from 15.98 a month earlier. Indian equities benchmark rose 4.1 per cent last month.

Malaysia's price-to-earnings ratio was 15.66, second highest in Asia, even though their shares registered a 1.75 per cent decline in September.

Read also: Why the Indian market remains stable amidst a global sell-off

“Despite the falling market in recent months, (FTSE Bursa Malaysia index's) valuations have not improved because forward earnings estimates have collapsed: earnings are now expected to contract by 4 per cent against a 1 per cent contraction as of end June.” said brokerage Jefferies in a report on Tuesday.

MSCI's broadest index of Asia-Pacific shares gained 2.13 per cent during September, and its forward 12-month price-to-earnings ratio rose to a five-month high of 13.14 times at the end of last month. The August level was 12.78.

China, Hong Kong and South Korea were the lowest-cost shares in the region, with P/E multiples of about 11 or less, according to Refinitiv.

Regional shares still trade at a slight discount to their global peers, the data showed.


Published on October 03, 2019

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