Singapore's equity market is top choice amongst ASEAN-5

It boasts of the highest dividend and cheapest valuation.

Singapore’s equity market is the top choice amongst the ASEAN-5 as it offers the strongest combination of growth, valuation and yield in the region, according to a report from DBS Equity Research.

ASEAN-5 are the five original member countries that established the regional organisation in 1967. Founding members include Malaysia, Thailand, Indonesia and Philippines.

The report recognised that Singapore’s equity market offers the cheapest valuation, highest dividend and steady earnings growth.

Additionally, Singapore has a stable currency with forecasts for the Monetary Authority of Singapore to push for an appreciating nominal effective exchange rate (NEER) by October 2018.

“As the global and regional recovery continues in 2018, we expect Singapore to be a prominent beneficiary of liquidity inflow seeking fair earnings growth at a reasonably attractive PE valuation,” the report added.

Thailand and Indonesia came in at second place after posting strong figures in terms of valuation and earnings per share respectively.

Malaysia was able to score well in terms of dividend yield but was pulled down by its poor earnings per share.

Despite performing strongly in terms of growth in earnings per share, the Philippines ranked last after its poor grade in both valuation and dividend yield.