Home >> Daily News >> ASEAN STOCK
||Asean Affairs 5 August 2011
Asean Stock Watch- August 5
U.S. stocks fell sharply Thursday as investors are concern over the global economic slowdown and jobless report ahead.
The Dow Jones index closed down 512.76 points, the worst one-day drop since December 2008.
The S&P 500 dropped 60.27 points, or 4.78 percent, to end at 1,200.07, while the Nasdaq composite fell 136.68 points, or 5.08 percent, to finish at 2556.39.
Crude oil closed at USD 86.57 a barrel, while gold settled at USD1,646.10 an ounce.
The benchmark stock index fell for a third straight day on Thursday, with palm plantation companies and coal miners leading the decline on concerns that a slowing global economy would soften demand for their commodities.
The Jakarta Composite Index fell 14.42 points, or 0.4 percent, to close at 4,122.09, bringing its three-day decline to 1.7 percent. More than 6.49 billion shares valued at Rp 6.81 trillion ($803.6 million) were traded on the Indonesia Stock Exchange, where decliners beat gainers 161 to 84.
Foreign investors sold Rp 565 billion more in shares than they bought.
“Commodities are declining, and Indonesia’s market has little support,” said Andri Zakaria, an analyst with BNI Securities.
Crude palm oil futures on Bursa Malaysia fell by 1 percent on Thursday. Indonesia is the world’s largest producer and exporter of palm oil, and recent weakness in the economies of consumer nations such as the United States and Britain might suggest poor future demand for the commodity.
Sampoerna Agro, one of Indonesia’s biggest plantation companies, fell 3.4 percent to Rp 3,575. Bakrie Sumatera Plantation lost 2.3 percent to Rp 435.
Coal mining shares fell along with crude oil prices, which declined 0.7 percent to $91.30 a barrel on Thursday.
Bumi Resources, Indonesia’s largest coal producer, shed 1.6 percent to Rp 3,150. Borneo Lumbung Energi, which exports most of its coal, lost 1.4 percent to Rp 1,410.
State-controlled toll road operator Jasa Marga fell 1.3 percent to Rp 3,900. Kim Eng Securities, in a note on Thursday, downgraded the stock from “buy” to “hold,” citing “limited upside potential.”
The rupiah fell for a second day, losing 0.1 percent to 8,495 against the dollar.
Andri said foreign investors had been pulling their funds out of the Indonesian market.
“It’s been net foreign selling for the past two days and as they pull their money from the exchange, that affects the rupiah,” he said.
International investors have withdrawn a net Rp 1.1 billion from stocks since Wednesday.
In Malaysia, the FBM-KLCI lost 17.87 points to 1,529.02, with turnover at 626.8 million shares valued at RM1.09bil. There were 22 gainers, 807
losers and 98 counters traded unchanged.
Top gainers were Latitude Tree Holdings which rose 15 sen to RM1.05, Catcha Media Bhd which rose 13 sen to 89 sen, and UAC which rose 9 sen to RM3.15.
Top losers were British American Tobacco which shed 88 sen to RM45.40, Panasonic Manufacturing Malaysia which shed 50 sen to RM23.88 and United Plantations which lost 50 sen to RM20.10.
Nymex crude oil was quoted at US$85.40 per barrel as at 9.47a.m. Spot gold was quoted at US$1,649.89 per ounce, while the ringgit was quoted at 3.011 to the US$.
Philippine share prices on Thursday rebounded, returning above the 4,500-level following an overnight “technical bounce” in Wall Street and the release of favorable first-half earnings results.
At the Philippine Stock Exchange, the composite index gained 13.08 points, or 0.29 percent to 4,501.53, while the broader all-shares index added 1.68 percent to 0.05 percent to 3,104.11.
Advancers led decliners, 88 to 64, while 29 stocks were unchanged. A total of 10.72 billion shares worth P5.97 billion changed hands.
“Local equities took advantage of Wall Street’s ‘technical respite’ given the latter’s steep fall the past sessions,” said Freya Natividad, investment analyst at 2TradeAsia.com, adding that investors also grabbed stocks with upside potential for the rest of the year.
“Although several are still searching for firmer fiscal and/or monetary action from the US and UK to get their economic house in order, funds will likely support prospects for emerging markets as these giants emerge from their debt problems,” said Natividad.
Mining and oil stocks continue to lead the local market with a gain of 2.83 percent with investors seeing more lucrative yields from this sector with support coming from global commodity and metal prices, the analyst added.
Local equities are expected to move sideways in the coming sessions with minor support at the 4,500 level, AB Capital Securities Inc. said. Resistance of the PSE index is at 4,550.
Asian currencies dropped across the board on Thursday amid concerns regional central banks will intervene to stem gains that may hurt exports, traders said.
Traders noted that Asian currencies were well bid during the midday break against the dollar.
“Consequently, the dollar-peso pair was biddish at the open with spot trying to retrace its highs for the day given that the majors were establishing new lows during Asia,” a trader said.
At the Philippine Dealing System, the peso shed 11.5 centavos to close at 42.345 against the US dollar from Wednesday’s 42.23 finish.
The dollar-peso pair opened at 42.16 and moved to a high of 42.35 and a low of 42.15.
Total trading volume went up to $1.238 billion from $1.225 billion the previous trading day.
The currency pair is expected to trade within the 41.80 to 42.60 range today.
“The peso is expected to be offered today given the majors’ rebound against the greenback. Further relieving pressure for risky assets was the stock performance overnight which managed to post gains at the last minute. However, the drop may be limited as players will be reluctant to test 42 once again given the uncertainties in the Euro zone,” another trader said.
Singapore shares opened lower on Friday, with the benchmark Straits Times Index at 3,009.94 in early trade, down 3.12 percent, or 97.07 points.
Around 631 million shares exchanged hands.
Thai stocks opened down 33.25 points at the start of trade Friday morning.
The Stock Exchange of Thailand main index opened at 1,090.76 points, down 2.96 percent from Thursday’s close. The trade value was 6.03 billion baht, with 892.92 million shares traded.
The SET50 index opened at 758.71 points, down 24.61 points or 3.14 percent, with a total trade value of 4.49 billion baht.
The SET100 index fell 53.36 points, or 3.12 percent, to 1,656.32 points, with a total turnover of 5.34 billion baht.
The SETHD index went down 29.03 points, or 2.71 percent, to 1,043.60 points, with a total turnover value of 1.65 billion baht.
The MAI index opened down 5.51 points, or 1.75 percent, to stand at 309.89 points, with total transaction value of 74.74 million baht.
Top five most active values were as follows;
BBL stood at 157.50 baht, down 7.50 baht (4.55 percent)
PTT stood at 332.00 baht, down 8.00 baht (2.35 percent)
KTB stood at 19.20 baht, down 0.80 baht (4.00 percent)
KBANK stood at 130.00 baht, down 5.50 baht (4.06 percent)
CPF stood at 31.25 baht, down 1.00 baht (3.10 percent)
The VN-Index ended its downward spiral Thursday, gaining 1.17 percent to close at 396.05 points.
Of the 284 codes listed on the HCM Stock Exchange, 211 managed gains and nearly half of those hit their ceiling prices.
The value of trades improved significantly to over VND1.8 trillion (US$87.4 million), a four-fold increase over Wednesday's figure. Volume also
skyrocketed to 102.6 million shares.
While many analysts wrote that yesterday's rally was due to a flood in demand for low-priced shares, Hoa Binh Securities Co analyst Nguyen Phuc Thinh said, "Great demand has yet to focus on healthy shares was due to the fear of economic upheavals. Even though around 360 shares have plunged below face value, many investors are still attracted by other shares."
The recovery yesterday followed a slight rally on the Hanoi Stock Exchange on Wednesday, Thinh said, and he warned investors of a possible bull-trap.
The total value of trades through this method in HCM City was VND1.5 trillion ($72.8 million), mainly attributable to Sacombank (STB). Over 74 million STB shares were bought through negotiation, totalling VND1.2 trillion ($58.3 million).
Notably, there were two sell orders of 44.1 million and 17 million shares, the exact amounts of STB shares that the Dragon Capital fund had registered to sell. These transactions were carried out at the ceiling price of VND16,000, although STB then closed down 0.7 per cent on the day. And, while Dragon Capital registered to sell more than 61 million STB shares, a number of investors related to other STB shareholders had registered to buy nearly 52 million.
Other blue chips performed well, with five of the 10 leading shares by capitalisation climbing between 0.3-2.1 percent and insurer Bao Viet Holdings (BVH) and PetroVietnam Finance (PVF) hitting their ceiling prices.
On the Hanoi Stock Exchange, the HNX-Index jumped more than 2 percent to conclude the day at 68.83 points. The value of trades rose by 43 percent over the previous session to VND279.4 billion ($13.6 million) on a volume of 29.6 million shares. Gainers outnumbered losers by 241-40.