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ASEAN STOCK WATCH Asean Affairs   1  December  2010

Buying Day in ASEAN

Shayne Heffernan

In ASEAN there a great buying opportunities today. The best buying looks to be in Singapore Keppel Corp. was down 2.4 per cent at S$10.66, City Developments gained 3.60 per cent to S$12.66, while Genting Singapore was 2.0 per cent weaker at S$1.99.

Golden Agri-Resources fell 1.4 per cent to S$0.725, Olam International declined 1.0 per cent to S$3.05, while Wilmar International dipped 1.1 per cent to S$6.02. The Dow Jones industrial average was 46.47 points lower, by 0.42 per cent, at 11,006.02 in late afternoon trade.

The Standard & Poor's 500 index had fallen 7.21 points, or 0.61 per cent, at 1180.55, while the Nasdaq composite index dropped 26.99, or 1.07 per cent, to 2498.23. Barring a significant turnaround, the Dow is on track to post its first monthly loss since August. The index is down 0.8 per cent for the month. The S&P 500 is flat for November, and the Nasdaq is down 0.3 per cent.

The dollar rose 0.4 per cent against an index of six other heavily traded currencies.

Bond prices rose, pushing their yields lower. The yield on the 10-year Treasury note fell to 2.78 per cent from 2.83 per cent Monday. That yield helps set interest rates on a wide variety of business and consumer loans including mortgages.

European stock exchanges slid for a second day in a row.

In London the FTSE 100 index down 0.41 per cent at 5,528.27 points, while in Paris the CAC 40 fell 0.73 per cent to 3610.44 points and in Frankfurt the DAX dipped 0.14 per cent to 6688.49 points.

Elsewhere, Milan fell 1.08 per cent, Amsterdam 0.69 per cent, Lisbon 1.25 per cent, Madrid 0.62 per cent and the Swiss Market Index fell by 1.33 per cent.

Market Chart

Dow Jones 11,006.02 -46.47 (-0.42%)

S&P 500 1,180.55 -7.21 (-0.61%)

Nasdaq 2,498.23 -26.99 (-1.07%)

In Kuala Lumpur the FBM KLCI index fell 10.72 points or 0.72% to close at 1485.23 points on Tuesday.


Trading volume increased to 1015.8 mil shares worth RM2055.32 mil as compared to Monday’s 1049.59 mil shares worth RM1929.50 mil.

The Winners were TELEKOM (+5 sen to RM3.44), KLK (+24 sen to RM 20.22), GENM (+4 sen to RM3.25), PETD (+10 sen to RM11.30) and MAS (+2 sen to RM2.09).

The Losers were MAY (-17 sen to RM8.51), SIME (-12 sen to RM8.68), GENT (-12 sen to RM10.10), TNB (-7 sen to RM8.50), and CIMB (-4 sen to RM8.44). Market breadth was negative with 299 gainers as compared to 465 losers.

The Finance Index went down 0.84% to 13510.08 points, the Properties Index fell 0.19% to 972.42 points and the Plantation Index gained 0.22% to 7665.22 points. The market traded within a range of 12.27 points between an intra-day high of 1497.50 and a low of 1485.23 during the session.

In Singapore, the STI closed 0.43 per cent lower on Tuesday amid concerns over the eurozone’s public finances and policy tightening in China. The Straits Times Index fell 13.51 points to end at 3,144.70.

Volume was 1.35 billion shares.

Losers led gainers 304 to 172.

CapitaLand fell 2.2 per cent to S$3.61, CapitaMalls Asia declined 2.5 per cent to S$1.97, while CapitaMall Trust ended 1.1 per cent lower at S$1.84.

DBS gained 0.6 per cent to S$14.00, OCBC rose 3.1 per cent to $9.93, while UOB was steady at S$18.50.

Keppel Corp. was down 2.4 per cent at S$10.66, City Developments gained 3.60 per cent to S$12.66, while Genting Singapore was 2.0 per cent weaker at S$1.99.

Golden Agri-Resources fell 1.4 per cent to S$0.725, Olam International declined 1.0 per cent to S$3.05, while Wilmar International dipped 1.1 per cent to S$6.02.

In Bangkok the Stock Exchange of Thailand (SET) composite index on Tuesday lost 3.88 points or 0.38 per cent to close at 1,005.12 points. The market value was 39.81 billion baht, with 4.24 billion shares traded.

Airports of Thailand Plc (AoT) yesterday reported a loss of 643 million baht in the last quarter of its 2009/2010 fiscal year, an improvement from a loss of 750 million baht a year earlier.

The July-September loss was due largely to higher expenses, primarily higher staff bonus payment, which reduced benefits arising from higher passenger and aircraft traffic throughput at its six airports.

AoT, 70%-owned by the Finance Ministry, paid bonuses equivalent to five-month salaries, up from four months expected earlier.

The loss was consistent with forecasts by analysts who projected a loss of 644 million baht in the quarter.

But for the whole year to Sept 30, AoT posted a 97.41% rise in net profit, with 1.41 billion baht, or 0.99 baht a share, up from 717.26 million baht (0.50 baht a share) from the previous year.

The earnings were lower than the average profit forecast of 2.1 billion baht by analysts.

The numbers of the aircraft, passenger and cargo movements had increased by 11.32%, 14.66% and 29.79% respectively leading to an increase in operating revenues 11.77% from the same period of the previous year.

The baht appreciation led to a foreign exchange gain of 309 million baht.

AoT operates the country’s six main airports: Suvarnabhumi and Don Muang in Bangkok and one each in Hat Yai, Chiang Mai, Chiang Rai and Phuket.

AoT projected a net profit of 3.68 billion baht for the 2010/2011 fiscal year on the back of an expected 14% rise in passenger volume and a 12% increase in aircraft movement.

Shares of AOT closed on the SET at 38.50 baht yesterday, up 25 satang, in trade worth 37.59 million baht.

Top five most active values were as follows;

IVL closed at 53.75 baht, up by 3.25 baht or 6.44 per cent.

THAI closed at 55.00 baht, up by 3.25 baht or 6.28 per cent.

PTTAR closed at 38.00 baht, down by 0.50 baht or 1.30 per cent.

TRUE closed at 6.35 baht, up by 0.30 baht or 4.96 per cent.

CPF closed at 25.00 baht, up by 0.20 baht or 0.81 per cent.

In Manila the Philippine Stock Exchange index (PSEi) opened the week down by 2.46 percent or 99. 88 points to 3,953.70, while the broader all-share index slipped by 1.75 percent or 49.08 points to 2,742.53.

The selling pressure was heavy where a total of 1.44 billion shares worth P8.41 billion ($190 million) were changed hands. Market breadth was likewise negative with 100 issues declining, 36 advancing and 29 unchanged.

Of the six counters, only the service sector and the mining and oil indices bucked the trend.

“Too many distractions have surfaced in the recent days keeping investors at the sidelines with most staying out of the market, booking their gains or cutting early their losses,” analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily stock market comment.

The analyst laments that while bargain hunters have been on the prowl, their numbers have not been sufficient to provide support to the local market.

Debt crisis in the Euro zone and the continued tensions on the Korean Peninsula have severely affected investors’ sentiment, countering the positive economic performance of the Philippines.

At the final bell, most of the 30 most heavyweight stocks of the Philippine equities finished in the negative.

Among those badly affected were the companies of Philippines’ richest man Henry Sy, Sr. These issues included holding firm SM Investments Corp. and mall operator SM Prime Holdings, Inc. which fell 7.71 percent and 11.50 percent, respectively.

Other issues that declined are Alliance Global Group, Inc. and Energy Development Corp.

In Jakarta the JCI posted its steepest drop since Nov. 12, falling 99.43 points, or 2.7 percent, to close at 3,531.21. About 9.8 billion shares worth Rp 10.1 trillion ($111.7 million) were traded. Decliners outnumbered gainers 173 to 64. The benchmark closed November down 2.9 percent, its first monthly decline in half a year.

The most active stock by value was Bumi Resources, the country’s top coal producer. It plunged 10.9 percent to Rp 2,650, while Berau Coal Energy, Indonesia’s fifth-largest miner, slid 1.9 percent to Rp 510.

Evita Legowo, director general of oil and gas at the Energy Ministry, said on Tuesday that the government would open tenders for 12 coal seam gas blocks, with bids due by Feb.24. Wintermar Offshore Marine, a provider of shipping services for the petroleum industry in Asia, dropped 11.27 percent to Rp 315 in its second day of its trading after a disappointing 6.6 percent fall in its debut.

Timah, the nation’s biggest tin producer, fell 2.8 percent to Rp 2,625 after futures for the metal declined 1.2 percent to $23,900 a metric ton in London on Monday. Bakrie Sumatera Plantations, a rubber and palm oil producer, posted its sharpest drop since Sept. 23, falling 6.3 percent to Rp 3,750. Rubber futures in Shanghai tumbled as much as 3.7 percent, erasing an earlier gain.

Among gainers, Astra Agro Lestari, Indonesia’s biggest agricultural firm by value, advanced 0.8 percent to Rp 24,150. Palm oil futures gained as much as 1.8 percent to 3,440 ringgit ($1,090) per metric ton on the Malaysian Derivatives Exchange.

The rupiah continued its slide against the dollar, trading at 9,029, as investors sought a safe haven in US assets against the European debt crisis. The rupiah closed the month down 1 percent, its second-straight monthly decline.

“Asia’s macroeconomic fundamentals are still stellar, but the currencies are not about to rally particularly hard as people are still taking risk off,” said Stuart Oakley, head of Asian emerging-markets currencies at Royal Bank of Scotland. “Wherever there is nervousness, people will pare back risk trades.”


Shayne Heffernan brings more than 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over US$500m and 1 that reach a peak market cap of US$15billion. He has managed and overseen start-ups in Mining, Shipping, Technology and Financial Services.


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