ASEAN KEY DESTINATIONS
Strong economic prospects continued to attract funds into the region, sending Singapore up 0.86 percent to a 23-month high and Malaysia up 0.43 percent to a25-month h ighs and helping Thailand reverse early losses. The outlook for Asian corporate earnings is favourable, although the return of inflation could trigger interest rate rises and reduce the attractions of equities. The MSCI’s broad measure of shares in the Asia-Pacific excluding Japan edged up 0.2 percent
In Jakarta, the index climbed 2.02 percent to 2,887.24, topping the record high of 2,838.47 set on Jan. 14, 2008. That pushed its gain so far this year to 13.9 percent, making it Asia’s best-performing bourse. Listed firms in Indonesia trade at a forward PE ratio of 14.32, trailing Malaysia’s 15.83 but ahead of the Philippines’ 13.08 and Thailand’s 11.77.
Ebeling Heffernan are positive on the outlook for Indonesia, Shayne Heffernan has suggested Indonesia’s 2010 index target could be over 3,300.
Shares in Indonesia’s biggest banks surged on expectations that the central bank would keep interest rates unchanged and that should support higher bank lending. Indonesia’s central bank reviews rates on Tuesday. Bank Tabungan Negara rose 8.97 percent, Bank Rakyat gained 2.87 percent, Bank Central Asia was up 5.5 percent and Bank Mandiri was 0.95 percent higher.
Singapore seen property shares actively traded as real estate prices continued to rise following reported record transactions in recent weeks, with City Development, and Fraser & Neave both rising over 1 percent.
Bangkok shrugged off the Thaksin protesters and the index finished 0.87 percent higher, hovering around 22 month highs and reversing a fall of more than 1 percent in the morning as inflows of foreign funds outweighed bearish domestic political sentiment.
Concern grew after Thaksin Shinawatra protesters brought the capital’s main shopping district to a halt at the weekend as the ousted Prime Minister seeks to return to Thai politics even though he was convicted of corruption and sentanced to 2 years in prison. Monday, after protesters were ignored for 3 weeks, Thaksin moved them to the main shopping district in a desperate bid for media attention.The Set was loud and clear in it’s rejection of the problem, showing how strong the Thai economy is now.
Kuala Lumpur, financials led the market, with CIMB Group climbing 1.1 percent and Public Bank 1.7 percent.
In the Philippines, the market was up 0.8 percent. Philippine Long Distance Telephone gained 1.7 percent and Manila Electric was up 2.3 percent.
Vietnam .VNI rose agaIN for a third session, adding 0.8 percent, led by a 3.8 percent gain in Vincom VIC.HM and a 3.1 percent rise in Hoa Phat HPG.HM. — Shayne Heffernan www.livetradingnews.com
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