Franklin Templeton has raised exposure to Thai and
Indonesian equities, foreseeing that domestic consumption will
continue to increase and Bangkok and Jakarta's stock exchanges
will perform very well over the next five years.
Dennis Lim, Singapore-based portfolio manager of Franklin
Templeton's emerging markets group, said Thai and Indonesian
shares in Templeton's $16 billion Asian Growth Fund had recently
been increased while it remained 'overweight' on the two
"We will continue to overweight both Thailand and Indonesia.
There is still room ... because if you look at the earnings
growth of Thailand and Indonesia, we expect the next five years
will be quite strong so we continue to like them," he said.
The fund considered the debt crisis in Europe as one of the
key risks to the global economy while large populations of the
ASEAN and growing demand of its key trading partner China boded
well for growth in the emerging region, he said.
"It's a very good region to be in right now ... we look at
Asean as a region of a 600 million people and income level is
rising. So, domestic demand in all these markets will continue
to increase," he said.
"Vietnam is starting to turnaround ... The investment
environment in Cambodia is getting more conducive ... For
Myanmar, we like what we see. We like the changes," he said.
"At the moment, our exposure in Myanmar is very small. Our
exposure in Myanmar is through Thailand. We're holding in
companies like PTT Pcl as we're looking at Myanmar. We
would like to get more direct exposures," he said.
1015 (0315 GMT)
(Reporting by Viparat Jantraprap in Bangkok;