Why you should bet on dirt-cheap Singaporean small-caps

They have the lowest valuations across the ASEAN.

Undervalued Singapore-listed small caps are the best poised for growth in bourses across the region in 2015, Macquarie Research stated in a report.

The report stated that Singapore small-caps are second only to Chinese and Hong Kong small caps when it comes to value. Small-caps here dropped 6% in the last quarter of 2014, with P/E ratios trailing at a 10% discount to averages.

“We think Singapore offers rich hunting grounds for small-caps in 2015, with the lowest valuations in ASEAN (P/B and PER) both absolute and compared to 10-year averages. Corporate governance and management quality is typically above average and a number are plays on the region rather than just the city-states economy,” the report stated. 

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