ASEAN KEY DESTINATIONS
Asean Stock Watch- July 1
Dow Jones Industrial Average closed at 12,414.34, up 152.92, or 1.25 percent. The S&P 500 index settled at 2,773.52, up 33.03 points, or 1.21 percent, while Nasdaq composite index closed at 2,773.52, up 33.03 pt, 1.21 percent.
Crude oil settled at USD 95.04 per barrel, while gold closed at USD1,500.10 an ounce.
Indonesian stocks rose on Thursday, lifting the benchmark Jakarta Composite Index to a new record as investors made trades to boost the performance of their portfolios before the end of the first half.
The JCI added 58.30 points, or 1.5 percent, to reach 3,888.57. For the year, the stock measure has gained 5 percent.
More than 4.4 billion shares worth nearly Rp 5.5 trillion ($643 million) were traded before the market’s close. Foreign investors bought as much as Rp 1.02 trillion worth of shares. Gainers beat decliners by 153 to 80.
“Positive internal and external indicators and window dressing at the end of the semester are driving Indonesia’s benchmark stock index to a new record high,” said Pardomuan Sihombing, head of research at Recapital Securities.
The broker forecasts a JCI rise of 22 percent to 4,500 this year. As long as core inflation did not exceed 5 percent, investors would remain hopeful, he added.
“The record high shows that investors are still confident about the outlook for the second semester,” Pardomuan said. “Probably only short-term sentiment like profit-taking could weigh down the index.”
Miscellaneous industries, which includes automotive, textiles and footwear, led the charge with a 2.7 percent increase, followed by services, which rose 2.1 percent, and manufacturing, which was up 1.8 percent.
“Miscellaneous industries increased significantly, driven by the country’s biggest automotive firm, Astra,” Pardomuan said.
Astra International saw its shares jump 3.2 percent to end the day at Rp 63,550.
Shares in Bank Mandiri gained 2.1 percent to Rp 7,200, while Bank Central Asia was up 2.7 percent to Rp 7,650.
The rupiah advanced 0.3 percent to 8,585 per dollar at 4:10 p.m. on Thursday.
The FTSE Bursa Malaysia KLCI (FBM KLCI) ended the first half of this year on a high note, to set a historic high of 1,579.07, 60.16 points higher compared with 1,518.91 recorded on Dec 31 last year.
MIDF Research senior analyst, Syed Muhammed Kifni Syed Kamaruddin, said the new high of FBM KLCI today compared to the low of 1,510 in early May coincided with the reversal in oil prices, from a high of US$115 per barrel in early May to the current price of US$92.
"Empirical evidence shows that oil price of above the threshold level may be materially disruptive to the economy," he said Thursday.
He said the market, for a while, was dampened by the fallout on the local economy from the Japanese earthquake in March and the political turmoil in the Middle East.
"Nevertheless, the FBM KLCI began to inch up since early May despite rate increases locally and by the European Central Bank," he said.
Meanwhile, RAM chief economist, Dr Yeah Kim Leng, said the market was expected to extend positive momentum in the second half as the local economy was forecast to improve in the period in tandem with the improvement in the advanced economy as well as Malaysia's largest trading partner, China.
"Export performance is expected to be good, improving the performance of listed stocks," he said.
Philippines share prices on Thursday shrugged off the continued weakness in Philippine Long Distance and Telephone Co. (PLDT) to snap a two-day slump on the back of quarter-end window dressing and expectations of a favorable resolution to the Greek financial crisis.
At the Philippine Stock Exchange, the composite index rose 41.86 points, or 0.99 percent to 4,291.21, while the broader all-shares index gained 33.56 points, or 1.13 percent to 3,002.64. A total of 2.05 billion stocks worth P5.57 billion changed hands. Advancers led decliners, 105 to 40, while 42 stocks were unchanged.
“Philippine shares avoided a third day in the red, buoyed up by quarter-end window-dressing and encouraging developments from Europe,” said Jun Calaycay of Accord Capital Equities Corp. Net foreign buying was at P1.32 billion led by Alliance Global Group Inc., San Miguel Corp., Aboitiz Equitiy Ventures Inc. and Aboitiz Power Corp.
“Despite persistent downward pressure, PLDT, the overall market and the main index managed to post impressive gains,” said Prince Anthony Yeung of AB Capital Securities Inc.
After tumbling 3.17 percent Tuesday, PLDT shares further declined 0.52 percent to P2,312 on concerns of possible foreign ownership violations.
“If PLDT is forced to rectify the problem then the better solution might be to increase domestic ownership in PLDT. Forcing foreign entities to divest their PLDT shares would yield negative repercussions for both PLDT and the overall investment community in general,” Yeung said.
The main index is up 2.14 percent year to date despite the weakness in bigger components PLDT, Ayala Land Inc. and Bank of the Philippine Islands.
Picking up the slack are mining issues Lepanto Consolidate Mining Co. and Philex Mining Corp. Other index issues with impressive year-to-date performances include DMCI Holdings Inc., JG Summit Holdings Inc., Globe Telecom Inc. and Universal Robina Corp.
“With window dressing playing a big part in [Thursday’s] performance, [Friday] might see a small retreat,” Yeung said.
Overnight, the Dow Jones Industrial Average rose 72.73 points, or 0.6 percent to close at 12,261.42 after Greek lawmakers passed an austerity bill that brought the debt-laden nation closer to getting more emergency loans.
Asian currencies, including the peso, continued to advance against the dollar after Greece approved an austerity measure to prevent it from defaulting, giving investors a huge sigh of relief.
At the Philippine Dealing System, the local unit gained 15 centavos to close at 43.33 against the greenback on Thursday from 43.48 the previous trading day.
The dollar-peso currency pair opened at 43.41 and moved to a high of 43.42 and a low of 43.33, with total trading volume easing to $633.88 million from Wednesday’s $862.90 million.
The currency pair is expected to end the week at a range of 43.20 to 43.60.
Singapore shares opened higher on Friday, with the benchmark Straits Times Index at 3,129.32 in early trade, up 0.28 percent, or 8.88 points.
Around 94.7 million shares exchanged hands.
Gainers beat losers 123 to 29.
The Stock Exchange of Thailand main index went up 8.22 points or 0.80 percent to close at 1,041.48 points at the end of trading session on Thursday afternoon. The trade value was 22.38 billion baht.
The SET50 index ended at 729.78 points, up 6.40 points or 0.88 percent, with a total trade value of 14.94 billion baht.
The SET100 index rose 13.60 points or 0.86 percent to stand at 1,587.31 points, with a total turnover of 17.41 billion baht.
The MAI index went up 3.43 points or 1.14 percent to close at 304.27 points, with total transaction value of 628.46 million baht.
Top five most active values were as follows;
KBANK closed at 123.00 baht, up 3.00 baht (2.50 percent)
BBL closed at 158.00 baht, up 1.50 baht (0.96 percent)
TOP closed at 74.50 baht, up 1.50 baht (2.05 percent)
PTT closed at 335.00 baht, up 2.00 baht (0.60 percent)
SCB closed at 111.00 baht, up 1.00 baht (0.91 percent)
Both Vietnamese stock benchmarks declined this morning, reversing yesterday's gains, while trade on the two national bourses remained sluggish for most of the session.
The VN-Index lost 0.47 per cent this morning, closing at 432.54 points, thanks to a strong rise in influential stocks.
On the HCM City Stock Exchange, the value of the day's trades dropped 12 percent from yesterday to just VND410 billion (US$19.9 million), on a volume of just 24 million shares. Decliners doubled advancers, with most blue chips tumbling.
Among the 10 largest shares in terms of capitalisation, only property developer Vincom (VIC) rose, ended the session up 2.2 percent to close at VND137,000 ($6.65) a share. The others declined or closed unchanged.
Sai Gon Securities Inc (SSI) was again the most actively traded stock, with 1.45 million shares changing hands, but it lost another 2.2 percent yesterday to close at VND17,700 ($0.86).
Seafood processor International Development & Investment Corp (IDI), which debuted 38 million shares today on the HCM City bourse, dropped to the floor price of VND14,400 ($0.70) from a reference price of VND18,000.
On the Hanoi Stock Exchange, the HNX-Index also declined 0.67 percent to close at 74.35 points. However, market volume increased 13 percent to VND316 billion ($15.3 million), with 29.6 million shares changing hands.
Losers outnumbered gainers by 171-75.
Kim Long Securities (KLS) was the most heavily traded stock nationwide with 3.23 million shares changing hands, but it slumped another 1.8 percent to close at VND10,900 ($0.53) per share.
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