ASEAN Equity Strategy "Sector model update: Add industrials and utilitie..."

Research evidence excerpt

ASEAN Equity Strategy "Sector model update: Add industrials and utilitie..."

Global Research

12 May 2026ab

ASEAN Equity Strategy Equity Strategy

AsiaSector model update: Add industrials and

utilities Permada Darmono

Analyst

permada.darmono@ubs.com

+65-6495 3137

Two new sector overweights: industrials & utilities Thierrawat Jungprasert

We update our ASEAN Sector recommendation model approximately once a quarter. Associate Analyst

Recall that the model uses 60% weight on price momentum and 40% weight on thierrawat.jungprasert@ubs.com

+65-6495 5590

fundamental factors to produce its recommendations. Our latest model (Figure 1)

produced overweight recommendations in financials (unchanged), health care Aakash Rawat, CFA

(unchanged), industrials (N previously), and utilities (UW previously). It also produced Analyst

underweight recommendations in communication services (OW previously), energy aakash.rawat@ubs.com

+65-6495 8283

(unchanged), information technology (N previously), and materials (unchanged).

Joshua Tanja, CFA

MSCI ASEAN energy sector surprisingly underperformed Analyst

joshua.tanja@ubs.com

Despite crude oil prices (Brent) up nearly 50% since the Middle East conflict began on +62-21-2554 7030

February 28, the MSCI ASEAN energy sector has underperformed on a 1-month and 3-

months look back relative to the MSCI ASEAN index. This may appear counterintuitive as Nicole Goh

one would expect energy companies to be well positioned in a rising oil price

nicole.goh@ubs.com

environment. While we have highlighted some energy, chemical, and resources names +603-2781 1133

that could benefit from sustained high oil prices, such as PTT Exploration & Production

(PTTEP), Medco Energy (MEDC), and Petronas Chemicals (PCHEM), among others, the Rachael Tan