“Asean is getting overlooked by some investors as it doesn’t have any big tech names like the U.S. and China,” said Nirgunan Tiruchelvam, head of consumer equity research at Tellimer. “As long as tech rally lasts, Southeast Asia will continue to underperform due to a lack of those companies.”
As markets around the world piggyback on technology shares to ride a startling rebound from their pandemic lows, stock investors in Southeast Asia are proving to be mere spectators.
Laden with so-called old-economy stocks such as those in the finance and real estate sectors, the MSCI Asean Index is down 19% in 2020 even as similar gauges for Asia Pacific and world equities have wiped out their year-to-date losses. The poor show has also put Asean shares on course for their worst annual performance relative to global peers since 2013, according to data compiled by Bloomberg.
