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ASEAN STOCK WATCH Asean Affairs   9  December  2010

Indonesia Hits Record, Others Will Follow

Shayne Heffernan

Some ASEAN Markets hit new record highs as we predicted on Sunday and more are ready to do the same.

Many analysts includig our own Shayne Heffernan and Paul Ebeling expect the market to a little flat few days before breaking out and mounting an upward move heading into the year’s end Christmas rally.

Bob Doll, chief investment strategist at BlackRock, told the Reuters 2011 Investment Outlook Summit Wednesday the deal to extend the Bush-era tax cuts should accelerate the move of cash into equities and out of fixed income.

In Manila the Philippine Stock Exchange index added 23.17 points or 0.55 percent to finish at 4,221.09.

Value turnover was heavy at P7.82 billion. There were 79 gainers that overwhelmed 50 decliners while 48 stocks were unchanged.

The day's rally was led by the industrial sector, which surged by 1.1 percent. All counters gained during the day.

In Jakarta the JCI gained 47.65 points, or 1.3 percent, for a record close at 3,769.99. About 5.8 billion shares valued at Rp 7.9 trillion ($877 million) changed hands. Decliners edged out gainers 109 to 108.

The power and mining sector led the rally, with Adaro Energy, the nation’s second-largest coal producer, hitting its highest close since its debut in July 2008, rising 6.1 percent to Rp 2,625.

Arrow Resources OTC:ARWD was trading lower in New York and Market Vectors Indonesia Index (ETF) NYSE:IDX was up slightly.

International Nickel Indonesia climbed 2.2 percent to Rp 4,700. Nickel for three-month delivery rose 2.1 percent to $24,095 a metric ton in London on Tuesday, the highest since Nov. 10.

Energi Mega Persada, the country’s second-biggest listed oil company, rose 0.7 percent to Rp 136. New reserves found in Gelam, South Sumatra, and its Malacca Strait block will boost output by 1,220 barrels a day, the company said on Wednesday.

Astra International, the nation’s biggest auto retailer, surged 3.1 percent to Rp 54,550. Domestic motorcycle sales rose 29 percent to 6.86 million units in the first 11 months of the year compared to the same period last year, Investor Daily reported.

Decliners included Perusahaan Perkebunan London Sumatra Indonesia, the country’s second-largest plantation company by market value, which fell 1.2 percent to Rp 11,950.

The rupiah declined slightly, trading at 9,018 against the US dollar at the market’s close on Wednesday, compared with 9,010 on Tuesday.

The Stock Exchange of Thailand (SET) composite index on Wednesday plunged 15.64 points or 1.50 per cent to close at 1,025.08 points. The market value was 75.45 billion baht, with 4.09 billion shares traded.

Siam Cement Plc (SCG) is selling its 15.59% shareholding in PTT Chemical Plc (PTTCH) for 33 billion baht, as the country’s largest industrial conglomerate seeks funds for domestic and overseas expansion.

SCG, 30% owned by the Crown Property Bureau, plans to sell 236 million shares in PTTCH at 140 baht per share to local and international investors, the company said in a statement to the Stock Exchange of Thailand.

PTTCH shares slid by 5.2% to 146 baht, the largest drop since May 25, in huge turnover worth 11.13 billion baht. Shares of Siam Cement (SCC), the third-largest listed company, fell 2.6% to 338 baht, its first decline in eight days.

SCG said it expected to book a non-recurring profit after tax of about 8.8 billion baht in the fourth quarter. It will retain 67 million shares, or 4.42% of PTTCH, after the sale.

The transaction will be done through global bookbuilding via Phatra Securities Plc and three initial purchasers: Bank of America Merrill Lynch, UBS AG in Hong Kong, and Credit Suisse (Singapore) Ltd.

Top five most active values were as follows;

PTTCH closed at 146.00 baht, down by 8.00 or 5.19 per cent.

SCC closed at 338.00 baht, down by 9.00 or 2.59 per cent.

PTT closed at 323.00 baht, down by 6.00 or 1.82 per cent.

IVL remained at 57.25 baht.

TRUE closed at 6.20 baht, down by 0.25 or 3.88 per cent.

In Kuala Lumpur the Bursa Malaysia rose 0.55% to close at 1510.06 points on persistent buying interest in selected heavyweights, led by CIMB and Tenaga.

The Finance Index added 0.79% to 13730.45 points, the Properties Index rose 1.45% to 1003.09 points and the Plantation Index climbed 0.42% to 7902.98 points. The market traded within a range of 8.72 points between an intra-day high of 1513.24 and a low of 1504.52 during the session.

Actively traded stocks include PETRONAS CHEMICALS, DRBHCOM, AXIATA, CAREPLS, DRBHCOM-CC, HUBLINE, PETRA, AIRASIA, MLAB and SAAG. Trading volume increased to 1084.75 mil shares worth RM2176.24 mil as compared to Monday's 846.11 mil shares worth RM1558.67 mil.

Leading Movers were CIMB (+23 sen to RM8.70), TNB (+14 sen to RM8.58), AXIATA (+6 sen to RM4.73), AMMB (+16 sen to RM6.42) and GENM (+10 sen to RM3.44).

Lagging Movers were MISC (-15 sen to RM8.45), PPB (-52 sen to RM17.00), DIGI (-16 sen to RM24.64), HONG LEONG BANK (-13 sen to RM9.27) and MAYBANK (-1 sen to RM8.40). Market breadth was positive with 458 gainers as compared to 310 losers.


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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