Singapore leads Asia Pacific in defensive investment choices

The country is brimming with lucrative telecommunications and utilities picks, says Russell Investments.

"Even though Singapore's GDP fell an annualized 1.1% in the three months through June from the previous quarter, this market has posted strong equity returns in July and year-to-date. The Singapore equity market offers a deeper selection of stocks in defensive areas such as telecommunications and utilities than other countries in the Asia Pacific region, which has led to country-specific investment opportunities," Sarah Lien, Senior Research Analyst for Russell Investments.

Singapore's relative wealth in defensive stocks led to its strong performance in the Russell Asia Pacific Index, which returned +4.4% year-to-date as of July 20th, yet has lost (-0.22%) for the month as of July 20th.

"Helping to drive the year-to-date return for the Index includes country constituents the Philippines (26.03%), Singapore (21.77%), Thailand (20.98%), Hong Kong (10.03%) and Malaysia (9.95%)." said Russell Investments.

Singapore, specifically, also returned 5.59% for the month as of July 20th, the highest among the 13 Asian countries included in the index.

In contrast, "country constituents China (2.57%), Indonesia (1.95%) and Japan (0.00%) have had the lowest returns year-to-date within the Index. Country constituent Indonesia moved upward thus far in July, returning 3.03%, while China (-0.46%) and Japan (-3.03%) lost ground for the same time period," it said.

"We continue to see some of the strongest performance this year from smaller markets like the Philippines and Thailand that have tended to be historically undercorrelated with macro weakness in other parts of the world," it added. 

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.


The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.


So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.