ASEAN KEY DESTINATIONS
Asean Stock Watch- July 6
The Dow Jones industrial average fell 12.90, or 0.1 percent, to close at 12,569.87. The Dow had risen as much as 19 points in morning trading after the Commerce Department reported an increase in orders for manufactured goods.
The Standard & Poor's 500 fell 1.79, or 0.1 percent, to 1,337.88. The Nasdaq composite index rose 9.74, or 0.3 percent, to 2,825.77
Indonesia’s benchmark index fell on Tuesday, as investors cashed in following three days of record gains.
The Jakarta Composite Index dropped 29.39 points, or 0.7 percent, to close at 3,924.13. About 5.4 billion shares valued at Rp 6.52 trillion ($763 million) changed hands. Decliners beat gainers by 112 to 50. Foreign investors bought Rp 80 billion more in shares than they sold, down from Rp 4.4 trillion on Monday.
The JCI had gained 3.7 percent in the previous three trading days — during which it closed at record levels — amid optimism that Greece would avoid a default following its Parliament’s approval of key austerity measures.
Investors had also been encouraged by data released on Friday that showed inflation in Indonesia slowed in June.
“This is purely profit-taking,” said Bagus Hananto, head of research at ONIX Capital. “The recent advances led investors to sell their shares.”
Bagus said trading on Tuesday was dominated by shares of large market capitalization companies. The so-called miscellaneous industry sector, which includes Astra International and Indomobil Sukses International, fell the most, losing 2.9 percent.
Astra International, Indonesia’s largest auto manufacturer, lost 3.2 percent to Rp 66,300, after a climbing 8.6 percent over the last five days. Indomobil Sukses International dropped 5.7 percent to Rp 9,100, paring a close to 20 percent gain on Monday.
Palm oil producers dropped after crude palm oil futures for September delivery fell by 10 percent on Bursa Malaysia, which may affect profitability. Astra Agro Lestari, Indonesia’s largest listed plantation company, lost 0.2 percent to Rp 23,250, while Salim Ivomas Pratama fell 1.6 percent to Rp 1,200.
The rupiah traded 0.2 percent lower at 8,535 against the dollar as the US currency rebounded.
Share prices ended lower Tuesday due to selling in heavyweights after the recent highs, coupled with a lack of fresh leads, dealers said.
At 5pm, the FTSE Bursa Malaysia (FBM) Composite Index fell 0.5 of a point or 0.03 percent to 1,581.85, as most of the 30 counters of the key benchmark index traded lower on selling pressure.
The key index had opened 1.6 points higher at 1,583.95 and moved between 1,580.38 and 1,584.83 throughout trade Tuesday.
A dealer said investors took cue from the weak trading across regional markets on renewed fears over the euro-zone sovereign debt especially Greece, while Wall Street overnight was closed for the Independence Day holiday.
Investors are also taking a serious stand on ratings agency Standard & Poor's warning that proposals to help Greece with a new bailout could still amount to a selective default, one dealer said.
OSK Research said investors took cue of key news from the domestic front including the planned political rally this Saturday that could well dampen overall interest in the market.
However, the country's Economic Transformation Program update and the restart of economic reform efforts provided some support for the market, the research house said.
At close, the Finance Index fell 8.34 points to 14,885.7, the Industrial Index declined 3.85 points to 2,842.19 and the Plantation Index rose 23.33 points to 7,881.63.
The FBM Emas Index increased 1.89 points to 10,856.63, the FBM Ace Index declined 30.33 points to 4,143.25 and the FBM70 Index added 11.69 points to 11,807.95.
Market breadth was negative with losers leading gainers 386 to 319 while 330 counters were unchanged, 438 untraded and 21 others suspended.
A total of 728.65 million shares valued at RM1.463 billion were traded against 728.68 million shares worth RM1.377 billion Monday.
Actively-traded Plus Expressway was flat at RM4.51, KBB Resources was up four sen to 48 sen, Key West Global Telecomm rose half a sen to 14.5 sen and MAA Holdings gained 1.5 sen to 71.5 sen.
Among top gainers, CI Holdings rose 28 sen to RM3.58, Guinness Anchor added 26 sen to RM10.48, Aliran Ihsan gained 25 sen to RM1.50, United Plantation increased 24 sen to RM20.30 and UMS Holdings went up 20 sen to RM1.88.
Among heavyweights, Maybank was unchanged at RM8.94, CIMB was down one sen to RM8.87, Petronas Chemical fell two sen to RM7.09, Sime Darby declined five sen to RM9.20 and Axiata rose one sen to RM5.01.
The Main Market volume increased to 597.18 million shares worth RM1.44 billion from 582.010 million shares, valued at RM1.354 billion transacted Monday.
Turnover on the ACE Market fell to 96.36 million units valued at RM16.21 million from 98.482 million units worth RM15.482 million previously.
Warrants slipped to 34.44 million shares worth RM6.49 million from 46.845 million shares valued at RM7.122 million Monday.
Consumer products accounted for 64.54 million shares traded on the Main Market, industrial products 109.04 million, construction 42.96 million, trade and services 181.89 million, technology 14.543 million, infrastructure 4.48 million, finance 74.82 million, hotels 407,100, properties 81.31 million, plantations 19.51 million, mining 6,000, REITs 3.586 million and closed/fund 75,000.
Continued optimism helped Philippine share prices to defy the correction in Asian markets, extending its rally on Tuesday en route to a new record high.
At the Philippine Stock Exchange, the composite index rose 18.05 points, or 0.41 percent to a fresh all-time high of 4,439.61, while the broader all-shares index inched up 9.25 points, or 0.30 percent to 3,078.48.
Advancers beat decliners, 71 to 63, while 45 issues were unchanged. A total of 2.77 million stocks worth P7.01 billion changed hands.
“With US markets closed last night, investors retained the optimism from yesterday’s session and pushed the market higher,” said Prince Anthony Yeung of AB Capital Securities Inc.
“Fueled by the momentum of the previous session, the market jumped off the opening bell before profit-takers pounced on the added advance, narrowing the day’s gains,” said Jun Calaycay of Accord Capital Equities Corp.
Asian markets were subdued in the absence of cues from Wall Street, which was closed because of Independence Day.
“We are pleased to note the resiliency of the PSEi and continue to cheer the liquidity and optimism in the market,” said Hans Sicat, PSE president and chief executive.
Despite the market’s upward trend, developments in the Greece bailout and the unfolding US fiscal crisis will continue to cast a dark cloud over the capital market and interrupt rallies, analysts said.
Domestic inflation rose to 5.2 percent in June, a 26-month high, which may provide bullets for both the bulls and the bears.
“The former perspective see this as a sign that the [Monetary Board] may hold rates steady at the next policy meeting, which in turn should keep corporate margins healthy and real rates of return positive,” Calaycay said.
“The bears may insist otherwise, emphasizing that we are closer to the upper limit, with growth still slack, year-on-year,” he added.
The market is expected to test the 4,470 resistance in the following days, with support at the 4,400 level through the 4,370-major pullback point.
The peso also strengthened for a second day as the rest of Asia stalled, after Standard and Poor’s said that Greece may be unable to avoid defaulting.
At the Philippine Dealing System, the local unit gained 11 centavos to close at 43.055 against the US dollar on Tuesday from Monday’s 43.065 finish.
The peso-dollar pair opened at 43.070 and moved tight to reach a high of 43.13 and a low of 43.050.
Total trading volume eased to $754.59 million from $879 million previously. A trader said Asian markets are likely to open flat today as investors remain cautious about Greece’s debt problems.
Traders expect the local currency to trade between 42.95 and 43.25 today, with weekly range of 42.80 to 43.50.
Singapore shares closed lower on Tuesday, with the benchmark Straits Times Index at 3,129.69, down 0.75 percent, or 23.75 points.
About 1.1 billion shares exchanged hands.
Losers beat gainers 308 to 146.
The Stock Exchange of Thailand main index went down 5.69 points or 0.52 percent to close at 1,084.59 points at the end of trading session on Tuesday afternoon. The trade value was 45.28 billion baht.
The SET50 index ended at 762.53 points, down 5.21 points or 0.68 percent, with a total trade value of 24.79 billion baht.
The SET100 index fell 9.67 points or 0.58 percent to stand at 1,658.98 points, with a total turnover of 37.36 billion baht.
The SETHD went down 6.11 points or 0.59 percent to 1,034.37. The trade value was 10.68 billion baht.
The MAI index went up 2.66 points or 0.89 percent to close at 300.67 points, with total transaction value of 538.02 million baht.
Top five most active values were as follows;
JAS stood at 3.34 baht, up 0.28 baht (9.15 percent)
BBL stood at 168.50 baht, up 1.50 baht (0.90 percent)
ITD stood at 4.48 baht, down 0.12 baht (2.61 percent)
KBANK stood at 130.50 baht, down 1.50 baht (1.14 percent)
PTT stood at 347.00 baht, down 4.00 baht (1.14 percent)
The SET High Dividend 30 index (SETHD) is a new index introduced from July 4 by the Stock Exchange of Thailand with an aim at reflecting prices movement of shares that have high market capitalization.
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