ASEAN KEY DESTINATIONS
Asean Stock Watch- July 12
Latest data showed that US non-farm payrolls rose by only 18,000 in June, well below the 125,000 gain expected by economists. On Friday, the Dow Jones Industrial Average lost 62.29, or 0.5 percent to 12,657.20.
Indonesian stocks fell from a record high on concern over the pace of global economic growth after the US reported disappointing employment data and China’s inflation kept accelerating.
The Jakarta Composite Index slipped 8.10 points, or 0.2 percent, to 3,995.59 on Monday after closing above 4,000 for the first time on Friday.
More than 4.14 billion shares worth Rp 4.41 trillion ($516 million) changed hands as decliners beat gainers 145 to 71. Foreigners bought Rp 62 billion more in shares than they sold.
Regional markets ended the day lower, with the Hang Seng Index of Hong Kong dropping 1.7 percent and the Nikkei 225 average in Japan losing 0.7 percent. On Friday, US unemployment climbed to 9.2 percent in June from 9.1 percent in May, casting doubt on the state of the economy’s rebound. Over the weekend, China reported that its annualized inflation rate rose to a three-year high of 6.4 percent, which might push the central bank to tighten monetary policy further.
Recent events were “casting a negative mood on the market,” said Mastono Ali, an analyst with CIMB Securities in Jakarta.
Among the sectors with the biggest declines, basic industry lost 0.9 percent and infrastructure fell 0.8 percent. Only the miscellaneous industry — which includes automotive and textile companies — and the finance sectors closed higher, each posting a 0.4 percent gain.
In infrastructure, state-owned Telekomunikasi Indonesia lost 2.1 percent to Rp 7,050. Investor Daily reported on Monday that the company was considering options to buy the 35 percent share in its subsidiary Telekomunikasi Selular from SingTel.
Shares of media company Indosiar Karya Media, a television network operator, rose 1 percent to Rp 950. Panin Sekuritas said in a note to its customers on Monday that Elang Mahkota Teknologi had concluded the purchase of Indosiar.
Elang Mahkota Teknologi, a rival TV broadcaster, lost 1.1 percent to Rp 1,880.
The rupiah was little changed, trading at 8,524 to the US dollar at the close of trading on Monday.
Share prices on Bursa Malaysia ended lower as foreign funds selling across the region in response to news of weak global development weighed down the local bourse, dealers said.
At 5pm, the FTSE Bursa Malaysia Composite Index (FBM KLCI) fell 6.16 points or 0.39 per- cent to 1,588.58, as most of the 30 counters of the key benchmark index traded lower on selling pressure.
The CI had opened 0.4 of a point higher at 1,595.14 and moved between 1,584.20 and 1,597.08 throughout trade today.
One dealer said the unexpected higher unemployment data in the US and worries that the Euro debt crisis was spreading to Italy, on top of Greece's debt, kept investors away from the market.
"However, we don't expect this trend to persist too long," he said adding that oil and gas stocks were among those that performed well.
He said news of the merger between Kencana Petroleum and SapuraCrest Petroleum provided support to the local bourse.
The dealer also said that plantation stocks were among the stocks favoured by investors including that of Kuala Lumpur Kepong, which rose 14 sen to RM22.80.
He said the price of crude palm oil was also expected to rise further ahead of Hari Raya.
At close, the Plantation Index lost one point to 7,909.97, the Finance Index fell 58.70 points to 14,980.04 and the Industrial Index declined 3.41 points to 2,879.21.
The FBM Emas Index decreased 38.95 points to 10,895.38, the FBM Ace Index declined 16.73 points to 4,163.92 and the FBM70 Index shed 23.99 points to 11,847.71.
The market breadth overall today was negative with losers outnumbering gainers 460 to 237 while 304 counters were unchanged, 487 untraded and 37 others suspended.
A total of 712.48 million shares valued at RM1.293 billion were traded today against 810.53 million shares worth RM1.57 billion last Friday.
Actively-traded Time Engineering Bhd-OS lost four sen to 14 sen, Xidelang Holdings shed 3.5 sen to 37 sen while Key West Global Telecomm added half-a-sen to 14.5 sen.
Among top gainers, YTL Cement rose 65 sen to RM3.50, Petronas Dagangan added 32 sen to RM17.42 and Pulai Spings Bhd gained 30 sen to 80 sen.
As for heavyweights, Maybank lost one sen to RM8.98, CIMB shed 10 sen to RM8.82 and Petronas Chemical fell one sen to RM7.10.
The Main Market volume decreased to 559.48 million shares worth RM1.26 billion from 602.84 million shares worth RM1.52 billion Friday.
Turnover on the ACE Market fell to 92.03 million units valued at RM17.989 million from 93.06 million units valued at RM14.91 million previously.
Warrants eased to 56.64 million units worth RM14.94 million from 103.42 million units worth RM30.84 million previously.
Consumer products accounted for 78.18 million shares traded on the Main Market, industrial products 83.989 million, construction 38.38 million, trade and services 1.84 billion, technology 8.896 million, infrastructure 10.93 million, finance 64.32 million, hotels 325,000, properties 73.12 million, plantations 11.71 million, mining 4,500, REITs 5.37 million and closed/fund 98,000.
Philippine share prices faltered on Monday, dragged by a soft US employment report and surging Chinese inflation, which triggered cautious trading among investors.
At the Philippine Stock Exchange, the composite index fell 15.60 points, or 0.36 percent to 4,375.86, while the broader all-shares index tumbled 2.51 points, or 0.08 percent to 3,068.29. Decliners beat advancers, 71 to 63, while 47 stocks were flat. A total of 2.99 billion stocks worth P4.32 billion changed hands.
“Stocks dropped on the first trading day of the week as investors reacted to weak US jobs report and a spike in Chinese inflation rate,” said AB Capital Securities Inc.
Also dampening sentiment was a report showing China’s inflation accelerating to a three-year high in June despite efforts to cool the overheating economy.
“This would mean a continuation of a tightening bias in China’s monetary policies,” AB Capital said.
Most Asian stocks were lower ahead of an emergency meeting of Euro zone officials over worries the sovereign debt crisis could spread to Italy from Greece.
The local equities market will likely move sideways as investors take cues from the major bourses abroad. Stocks may get a boost from the release of second quarter earnings results in the coming weeks.
Support is at 4,340, the top of a two-month consolidation range from which the main index broke out recently. Immediate upside resistance is at the 4,500 level.
Asian currencies also slid across the board Monday after the weak US jobs report.
At the Philippine Dealing System, the peso shed 17.5 centavos to close at 42.91 against the US dollar on Monday from 42.735 last Friday.
“Risk aversion is on the table again. When you have negative data from the world’s largest economy, coupled with Europe’s lingering debt problem, putting negative impact on Asian currencies,” Marcelo Ayes, senior vice president at RCBC, said.
The dollar-peso pair opened at 42.85 and moved to a high of 42.93 and a low of 42.83.
Total trading volume eased to $646.08 million from $936.28 million last Friday. The currency pair is expected to trade at 42.80 to 43.20 today, with bias leaning on the weaker end.
Singapore shares opened lower on Tuesday, with the benchmark Straits Times Index at 3,097.86 in early trade, down 0.63% percent, or 19.51 points. Around 70.4 million shares exchanged hands.
The Stock Exchange of Thailand (SET) composite index on Monday lost 11.22 points, or 1.03 percent, to close at 1,077.24 points. The market value was 29.35 billion baht, with 4.18 billion shares traded.
The SET100 index ended the session at 1,642.65 points, down 20.46 points, or 1.23 percent, with a total trade value of 22.68 billion baht.
The SET50 index went down 9.76 points, or 1.28 percent, to stay at 753.59 points, with a total transaction value of 18.48 billion baht.
The SETHD index stood at 1,017.76 points, down 14.74 points, or 1.43 percent, with a total transaction value of 6.52 billion baht.
The Market for Alternative Investment (mai) index dropped 1.58 points, or 0.51 percent, to close at 308.23 points, with a total turnover of 860.71 million baht.
Top five most active values were as follows;
PTT closed at 331.00 baht, down by 4.00 baht, or 1.19 percent.
BBL closed at 163.00 baht, down by 4.50 baht, or 2.69 percent.
PTTCH closed at 159.50 baht, down by 3.00 baht, or 1.85 percent.
TOP closed at 72.50 baht, down by 1.75 baht, or 2.36 percent.
KBANK closed at 128.00 baht, down by 0.50 baht, or 0.39 percent.
Stocks plunged on both stock exchanges yesterday, with half of all codes posting losses. Market volumes and values remained modest.
On the HCM City Stock Exchange, the VN-Index retreated by 1.2 percent to close at 425.09 points. The value of the day's trades totalled just VND352 billion (US$17 million) on a volume of 21 million shares.
Losers outnumbered gainers by 130-77, with numerous blue chips declining. Property developer Hoang Anh Gia Lai (HAG) and financial conglomerate Masan Group (MSN) dropped by about 5 percent, while PetroVietnam Finance (PVF) lost 3.5 percent. Vinamilk (VNM) slumped by 0.9 percent and real estate developer Vincom (VIC) closed down 0.7 percent.
Binh Dinh Minerals Co (BMC) was among a few gainers, rising to the daily limit of 5 per cent for the second day after it posted a second-quarter profit of nearly VND34 billion ($1.6 million), exceeding its yearly target by 21 percent.
Despite rumors surrounding changes in the management board of Sacombank (STB), STB was still the most-active share on the HCM City bourse with 2.36 million shares changing hands. It was also heavily sold by foreign investors yesterday, with over 769,000 shares unloaded, worth a combined VND10 billion ($504,800). STB still managed to close at VND13,600 ($0.66), a gain of 2.3 percent.
On the Ha Noi Stock Exchange, the HNX-Index lost 1.24 per cent yesterday to close at 71.94, with decliners outnumbering advancers by 179-68. Trading was sluggish, with the value of trades reaching a mere VND187 billion ($9 million) on a volume of only 17.4 million shares.
Kim Long Securities (KLS), the most-active share with 2.3 million traded, declined by 2.8 per cent to close at VND10,400 ($0.50).
Foreign investors concluded yesterday as net buyers on both exchanges, picking up nearly VND3 billion ($145,600) worth of shares. Software producer FPT was heavily favoured by this segment, which traded in VND4.5 billion ($218,000) worth of FPT shares.
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