monster singapore Ticket Monster said Tuesday that the acquisition of Integrated Methods Sdn. Bhd., which owns an online shopping site, marks the beginning of its Asian expansion. Ticket Monster CEO Daniel Shin said the company wants to grow aggressively overseas. He told reporters the company also aims to expand into Singapore, the Philippines, Vietnam and Japan.Consider equities - look at dividend yield, watch for risks to PER and earnings growtUntil recently, the good news has been that a relatively small allocation to global equity markets would have offset the inflation erosion from investing in cash instruments.The MSCI World index rose 31 per cent in 2009 and then over 10 per cent last year. In the first quarter of this year, the return has been almost 4 per cent (over 16 per cent on an annualised basis). This performance was remarkable given the backdrop of much higher oil prices, due to the political crises in the Middle East, the earthquake, tsunami and radiation leak in Japan, the sovereign debt issue in Europe and increasing signs that the Asia rate hiking cycle may be more severe than expected.
Given the low returns expected in other major asset classes (cash and bonds), we remain overweight on global equities on a 12-month time horizon. However, the outsized returns we have seen over the past 27 months are unlikely to be replicated going forwardThere are three key drivers to equity market performance: The dividend yield, earnings growth and the price-earnings ratio (PER, the price the market is willing to pay for earnings). We see little reason to forecast a significant re-rating of equity markets via a higher PER in the coming months, as the risk of higher oil prices remains. Our analysis suggests if oil prices rise to around US$150 per barrel on a sustained basis, it would significantly undermine global growth, reducing the attractiveness of global equities.
Therefore, we are likely to have to rely on the other two factors to generate the majority of returns. The MSCI World index dividend yield is 2.4 per cent currently, while consensus earnings growth is around 14 per cent on average over the next two years, according to I/B/E/S data.
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