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ASEAN STOCK WATCH Asean Affairs  15 August 2012

ASEAN Market Outlook, Singapore, Thailand, Malaysia, Indonesia, Philippines

By Shayne Heffernan Ph.D.

The S&P 500 is within a stone's throw of new four-year highs, leaving investors looking for new catalysts to move the market higher. Just 5.16 billion shares changed hands on the three major U.S. exchanges, a light day of trading.

The Dow Jones industrial average .DJI rose 2.71 points, or 0.02 percent, to 13,172.14. The Standard & Poor's 500 Index .SPX was down 0.18 point, or 0.01 percent, at 1,403.93. The Nasdaq Composite Index .IXIC was down 5.54 points, or 0.18 percent, at 3,016.98.

U.S. retail sales rose 0.8 percent in July, the biggest increase since February and better than a forecast 0.3 percent rise. The previous month's numbers were revised to minus 0.7 percent from minus 0.5 percent.


Share prices on Bursa Malaysia closed higher as the market moved into positive territory in the late afternoon session in tandem with advances in regional markets, dealers said.

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 6.58 points to a new-all-time-high of 1,652.90.

Dealers said market sentiment was boosted by expectations of stimulus measures by central banks globally to boost economic growth.

The Finance Index surged 27.67 points to 14,816.79, the Industrial Index surged 28.34 points to 2,917.96 and the Plantation Index rose 2.29 points to 8,731.01.

The FBM Emas Index surged 39.26 points to 11,300.43 and the FBMT100 Index advanced 40.82 points to 11,124.41. The FBM70 Index rose 29.72 points to 12,440.10 and the FBM Ace Index
increased 17.83 points to 4,460.01.

Advancers outnumbered decliners 362 to 349 while 325 counters were unchanged, 594 others untraded and 24 suspended. Turnvover increased to 1.015 billion shares worth RM1.255 billion from 982.567 million shares worth RM1.226 billion yesterday.


City Developments Ltd. (CIT), Singapore’s second-largest developer, said profit fell 38 percent in the second quarter as the global slowdown hurt hotel occupancies and government measures curbed sales of luxury apartments.

Net income dropped to S$137.7 million ($110.5 million) in the three months ended June 30, from S$220.9 million a year earlier, it said in a statement to the Singapore stock exchange today. That lagged behind the S$151 million profit estimate in a Bloomberg Survey. Sales fell 20 percent to S$787.8 million, while income from profits on sale of investments and management fees dropped 95 percent to S$4.3 million.

Singapore home sales posted their biggest drop in 2 1/2 years in the second quarter, a government report showed. The island state’s private residential property sales declined 17 percent to 5,572 units in the three months ended June 30 from the previous quarter, according to data released by the Urban Redevelopment Authority on July 16. Debt crisis in Europe and economic slowdown in the U.S. and China are affecting Southeast Asia, Kwek Leng Beng, executive chairman at City Developments, said today at a press conference in Singapore.

“The outlook for the global economy is uncertain and fragile at this stage,” Kwek said. “The crisis is worse than six months ago,” he said, adding that it may take at least three years to recover from the crisis.

The group sold 1,299 units valued at about S$1.25 billion in the six months ended June 30, a 57 percent increase from the same period a year ago. The developer didn’t book any profits from H20 Residences, The Palette, Bartley Residences, The Rainforest and Blossom Residences as their construction is still at an early stage, it said.


Tevin Vongvanich only took the helm in May at Thailand's top oil and gas explorer, PTT E&P , but he is already overseeing a multibillion dollar M&A deal as part of the company's mission to pursue acquisitions and ramp up production.

PTT Exploration and Production Pcl (PTTEP) is set to complete a $1.9 billion takeover of London-listed Cove Energy Plc this week, having trumped global oil titan Royal Dutch Shell in a five-month bidding war.

The acquisition -- PTTEP's first since Tevin became chief executive -- will give the state-controlled firm access to massive gas finds off the coast of east Africa and boost energy supplies for Thailand, which uses natural gas to generate 70 percent of its electricity.

Tevin, an energy sector veteran known for his experience in finance, has said he will continue to scout for opportunities to buy assets overseas as part of PTTEP's plans to triple production to 900,000 barrels of oil equivalent per day by 2020.

"It's a mission that we have to accomplish," Tevin, 54, told Reuters last month. "We are looking to buy assets everywhere where there is potential."

To finance its takeover of Cove, PTTEP said it plans to raise $3.1 billion in Thailand's biggest share sale, sending its shares to a six-week low on Monday on investor concerns of a dilution to earnings.

Bangkok-born Tevin had previously worked at PTTEP for 15 years before moving to parent PTT Pcl, Thailand's top energy firm, where he rose to become chief financial officer.


The yield on the 25-year treasury bond on Tuesday slid to 5.75 percent, 90.6 basis points lower than the previous average of 6.656 percent for the most recent issue of the same tenor in the primary market.

Also, Tuesday’s yield was 4.5 basis points lower than the 5.795 percent for done deals in the secondary market.

Investors tendered a total of P26.256 billion, or almost thrice the volume on offer. The Bureau of Treasury raised P9 billion as planned from Tuesday’s issue.

National Treasurer Roberto B. Tan said Tuesday’s auction results were influenced by good economic fundamentals.

“The market remains awash with cash and inflation is still very much tempered,” Tan said. “Earlier this year, external developments exerted upward pressure (on interest rates) but domestically, we are still liquid.”

According to the National Statistics Office, the rate of increase in consumer prices reached 3.2 percent year on year in July.

This brought average inflation in the seven months to July to 3.1 percent.

Yesterday in Asia

Tokyo gained 0.50 percent, or 44.73 points, to 8,929.88, Seoul rose 1.27 percent, or 24.52 points, to 1,956.96, while Sydney was up 0.21 percent, or 8.9 points, to close at 4,292.2.

Hong Kong climbed 1.05 percent, or 210.32 points, to 20,291.68 and Shanghai ended 0.30 percent up, adding 6.45 points to 2,142.53.

– Wellington rose 0.39 percent, or 13.92 points, to 3,608.88.

Contact Energy was up 0.6 percent to NZ$4.88 on a solid annual result, while Telecom Corp. gained 2.0 percent to NZ$2.71.

– Manila closed 0.11 percent, or 5.84 points, lower at 5,265.94.
Ayala Land fell 1.5 percent to 23 pesos and Energy Development shed 0.9 percent to 5.85 pesos.

– Taipei climbed 0.58 percent, or 42.95 points, to 7,479.25.

Taiwan Semiconductor Manufacturing Co. was 0.60 percent higher at Tw$83.2 while Hon Hai Precision edged up 0.12 percent to Tw$85.0.

– Bangkok rose 0.61 percent, or 7.45 points, to 1,226.82.

Coal producer Banpu gained 2.62 percent to 470 baht, while Siam City Cement lost 1.72 percent to 342 baht.

– Jakarta rose 0.46 percent, or 19.03 points, to 4,121.56.

Carmaker Astra rose 1.4 percent to 7,200 rupiah, while consumer goods producer Unilever gained 2.2 percent to 22,500 rupiah.

– Kuala Lumpur climbed 0.4 percent, or 6.58 points, to 1652.90.

PPB Group added 5.9 percent to 14.78 ringgit and British American Tobacco rose 2.8 percent to 63.30 ringgit.

– Singapore was up 0.75 percent, or 23.03 points, to end at 3,087.84.

DBS Bank was up 67 percent to Sg$14.98 and Singapore Telecom fell 0.89 percent to Sg$3.36.

– Mumbai gained 0.54 percent, or 94.75 points, to 17,728.20.


Shayne Heffernan Ph.D.  

Linda Johnson, Business Development Director - Private Client Group, Heffernan Capital Management
3 Raffles Place #07-01
Bharat Building Singapore 048617
Tel: +65 6329 6408 Fax: +65 6329 9699
Email :
Suite 53 Athenee Tower
63 Wireless Road, Lumpini, Pathumwan, Bangkok 10330
New York 347 5th Avenue, Suite 1402-508 NY, NY 10016


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