Kim Eng says curious side-effect of Fed Chairman Bernanke’s strategy of aggressive monetary easing, aimed at stimulating U.S. economy into action, avoiding deflation, is that “a huge amount of excess liquidity is flowing into emerging markets, where investors see better growth opportunities and potential currency appreciation.”

Says talks of further round of quantitative easing seem to have put spotlight on listed regional exchanges, with share prices of Singapore Exchange (S68.SG) +18%, Hong Kong Exchanges and Clearing (0388.HK) +28%, Bursa Malaysia (1818.KU) +10% in last month alone. 

 

Notes, most valuation matrixes for SGX revolve around estimating where average daily trading value is heading; current analyst estimates are mostly between $1.7 billion-$2.1 billion for next 9 months; “If you have a more bullish view of market activities, SGX may be the bet for you.” 

 

SGX shares down 1.2% at $9.92.