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ASEAN STOCK WATCH Asean Affairs   2  December  2010

ASEAN markets will rally today

Shayne Heffernan

ASEAN markets will rally today, for those following our suggestions today is a good day to take some money off the table, buying over the last 2 days will prove very profitable in the morning.

Dow Jones industrial average gained 249.76 points, or 2.27 per cent, to end unofficially at 11,255.78. The Standard & Poor's 500 Index gained 25.52 points, or 2.16 per cent, to finish unofficially at 1206.07. The Nasdaq Composite Index gained 51.20 points, or 2.05 per cent, to close unofficially at 2549.43.

The economic optimism helped boost the Dow Jones Transportation Average index, which posted its second gain of more than 2 per cent in less than a week, catapulting it to its highest level since September 2008. Wednesday's advance was led by gains in FedEx Corp, up 4 per cent at $US94.72, and CSX Corp, up 3.2 per cent at $US62.77.

Also advancing was the S&P 500 retail sector index, up 2 per cent to 500.05, its highest level since September 2007, Reuters data showed, reflecting an optimistic outlook for the holiday shopping season.

Our best buys are, Arrow Resources Development Inc. OTC:ARWD, PT Astra Agro Lestari Tbk JAK:AALI, Aberdeen Indonesia Fund, Inc. AMEX:IF, Market Vectors Indonesia Index (ETF) NYSE:IDX

Rapid growth in Indonesia has led to a rapid demand in the food sector, agricultural companies across Indonesia are booming are will do so for many years to come, here is out hot list of the USA listed companies in that sector.

PT Astra Agro Lestari Tbk is an Indonesia-based plantation company. The Company’s principal activities are the operation of oil palm, rubber and cocoa plantations, general trading, manufacturing, transportation, consultation and related services. Its 4,059-hectare oil palm plantation is located in South Kalimantan and the cooking oil factory is located in North Sumatra, Indonesia. The Company and its subsidiaries’ mills have production capacities of 940 tons of fruit bunch per hour and 600 tons of kernel per day and 300 tons of crude palm oil (CPO) per day. The subsidiaries’ plantations and mills are located in Java, Sumatra, Kalimantan and Sulawesi.

Arrow Resources Development Inc. OTC:ARWD,

Arrow Resources Development Inc. (ARWD) provides corporate operating structure, financial operations, sales and marketing activities and the financial administrative infrastructure for the commercial development of land and natural resources in Indonesia. The land to be developed has been categorized as environmentally “critical land” by the Indonesian government due to deforestation by local farmers and predatory logging companies. Arrow and their partners undertake every project in a manner that is sensitive to the local environment and social structure, blending economic growth with socially conscious development. All current and future operations utilize the existing natural resources in a sustainable, renewable and responsible manner.

Aberdeen Indonesia Fund, Inc. AMEX:IF

Aberdeen Indonesia Fund, Inc. (the Fund), formerly Indonesia Fund, Inc., is a closed-end fund. The Fund seeks long-term capital appreciation as a primary objective and income as a secondary objective, by investing primarily in Indonesian securities. Aberdeen Asset Management Asia Limited serves as the Investment Adviser of the Fund.

Market Vectors Indonesia Index (ETF) NYSE:IDX

The Indonesia Index ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Indonesia Index.

The Market Vectors Indonesia Index is a rules-based, modified market capitalization-weighted, float-adjusted index intended to give investors exposure to Indonesia.

In Singapore the Straits Times Index closed at 3,181.94, up 1.18 per cent, or 37.24 points.

About 1.3 billion shares exchanged hands.

Gainers beat losers 305 to 136.

In Jakarta, Index (JCI) closed back to the 3,500 psychological level at 3,531 on Tuesday, down 2.74 percent, or 99.42 points, the biggest loss since Aug. 3. Analysts attributed the decline to the recent tension in the Korean Peninsula, debt crisis in Ireland and fears that China, the world’s second-largest economy, may increase its benchmark interest rate after raising it by 25 basis points (bps) in October, to slow the aggressive expansion of its economy.

One-hundred-and-seventy-three stocks in the nation’s stock exchange were in the red, while 64 stocks were closed higher and the remaining 184 unchanged. The miscellaneous industry sector led the loss, sliding by 4.17 percent.

Indonesia’s rupiah suffered a second-monthly decline as concern Europe’s debt crisis will worsen bolstered demand for dollars and prompted investors to favor safer bets than emerging-market assets. Benchmark bonds slid for the first time in three months.

The rupiah slumped 1.1 percent this month to 9,034 per dollar as of 3:10 p.m. in Jakarta, according to data compiled by Bloomberg. It earlier reached 9,054, the weakest level since July. The currency is still up 3.9 percent for the year and reached a three year-high of 8,875 on Nov. 5.

Four of Bakrie’s seven firms were on the list of Tuesday’s top losers in the nation’s stock exchange. Bakrie and Brothers led the loss among the total 421 members on the index on Tuesday. The shares (BNBR) plunged nearly 12 percent, or 9 points, to close at Rp 69 each.

Shares of Bumi Resources (BUMI), Energi Mega Persada (ENRG) and Darma Henwa (DEWA) were positioned at three, six and seven on the top losers list on Tuesday, sliding by 10.92 percent, 10.22 percent and 10 percent, respectively.

Philippine Stock Exchange Index (PSEi) improved to 4,002.88 points on Wednesday after falling below the 4,000-level for the first time in about seven weeks on Tuesday.

The index was up 1.24 percent or 49.18 points while the broader all-shares index climbed 0.88 percent or 24.36 points to 2,766.89.

The rally was led by property shares, which rose 3.01 percent. All other sub-indices were in the green except for the service sector, which fell 1.68 percent.

There were 1.07 billion shares that changed hands for P5.94 billion. Among the top gainers was mall operator SM Prime Holdings Inc., climbing 10.8 percent to close at P11.08 a share.

There were 63 advancers and 62 decliners while 53 shares were unchanged.

“Wednesday would initially be tagged as a reaction rally—a technical rebound,” a local trader said.

“This point is highlighted by the value turnover coming at only half of Tuesday’s total,” he said, adding that most market players took a breather.

He said the rebound would have gone higher if not for the still-negative news overseas and mixed news on the local economic front, particularly the government’s pronouncements that tax revenues likely fell below target in November.

The FBM KLCI index rose 0.19 points or 0.01% to close at 1485.42.


Trading volume decreased to 886.25 mil shares worth RM1591.24 mil as compared to Tuesday’s 1015.8 mil shares worth RM2055.32 mil.

The Winners were AMMB (+14 sen to RM6.19), GENTING (+8 sen to RM 10.18), DIGI (+36 sen to RM24.82), AXIATA (+3 sen to RM4.61) and KLK (+34 sen to RM20.56).

The Losers were MAYBANK (-7 sen to RM8.44), CIMB (-6 sen to RM 8.38), SIME (-5 sen to RM8.63), PBB (-28 sen to RM17.60) and YTLPOWR (-4 sen to RM2.43). Market breadth was negative with 364 gainers as compared to 366 losers.

The Finance Index went down 0.07% to 13500.44 points, the Properties Index gained 0.17% to 974.03 points and the Plantation Index rose 0.85% to 7730.02 points.The market traded within a range of 10.1 points between an intra-day high of 1487.67 and a low of 1477.57 during the session.

Stock Exchange of Thailand (SET) composite index on Wednesday rose 12.52 points or 1.25 per cent to close at 1,017.64 points. The market value was 47.39 billion baht, with 6.13 billion shares traded.

The Bank of Thailand’s monetary policy committee has raised the one-day repurchase rate (RP) by 0.25 per cent to 2.00 per cent, from the previous 1.75 per cent, BoT assistant governor Phaibul Kittisrikangwarn said on Wednesday.

The new key policy rate took effect immediately.

Mr Phaibul said the need to ease monetary policy has lessened on the back of the country’s strong economic fundamentals.

The economy has strong potential for further growth, boosted by domestic consumption. Private investment was on an upward trend while the tourism sector continued to expand substantially, he said.

The Stock Exchange of Thailand (SET) composite index soared more than eleven points in the afternoon trading following the central bank’s announcement.

At 3.31pm, the SET index had gone up 11.57 points, or 1.15 per cent, to stand at 1,016.69. The trade value was 33.11 billion baht.

Securities Research Department at DBS Vickers (Thailand) Securities senior director Arphaporn Sawaengphak said the SET index went up as investors turned to buy shares of banks after the key policy rate was raised to 2.00%.

The RP rate increase would make the net interest margin (NIM) higher, Ms Arphaporn said.

Meanwhile, Prime Minister Abhisit Vejjajiva said he expects the tripartite Wage Committee to decide on the new labour minimum wage on Dec 9.

Mr Abhisit said this when told by reporters that the Assembly of Labour Unions had expressed disappointment on learning that the new minimum wage might be 215 baht per day.

Top five most active values were as follows;

IVL closed at 56.50 baht, up by 2.75 or 5.12 per cent.

PTL closed at 40.75 baht, up by 4.25 or 11.64 per cent.

IRPC closed at 4.98 baht, up by 0.36 or 7.79 per cent.

PTTCH closed at 155.50 baht, up by 2.00 or 1.30 per cent.

PTTAR remained at 38.00 baht.


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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