ASEAN KEY DESTINATIONS
Asean Stock Watch- July 8
Overnight, the Dow Jones Industrial Average rose 56.15 points, or 0.4 percent, to close at 12,626.02, brushing aside slower growth in the US service sector.
Indonesia’s benchmark stock index rebounded on Thursday, snapping a two-day slump that some observers said was excessive.
“This is a technical rebound, especially after the two-day drop, during which the index’s loss was quite big,” said Maxi Liesyaputra, an analyst with BNI Securities.
The Jakarta Composite Index gained 30.52 points or 0.8 percent, to close at 3,939.47, halting a two-day, 1.1 percent decline. Gainers beat decliners 150 to 65. More than 4.17 billion shares worth Rp 7.37 trillion ($862 million) changed hands.
Astra Group-related shares gained on expectations that consumers would start purchasing vehicles ahead of Ramadan, which starts next month. “Shares of Astra Group were among the most traded today,” Maxi said. “Automotive sales, for both cars and motorcycles, are expected to continue growing this year, and Astra is the stock to buy.”
Astra International rose 1.2 percent to Rp 65,850. The company’s motorbike manufacturing unit, Astra Honda Motor, has increased its production capacity by 500,000 this month. The increase in capacity was scheduled for September, but was accelerated in anticipation of an increase in sales before Idul Fitri.
United Tractors, Astra’s heavy equipment unit, advanced 1.6 percent to Rp 25,050. The company has finalized its acquisition of a 20 percent stake in a Sumatra mining company that has coal reserves of 110 million tons.
Astra Otoparts, an auto part maker, rose 1.4 percent to Rp 3,700. It is expecting its Astra Visteron to start operation in the first quarter next year.
The rupiah strengthened 0.1 percent to 8,532 to the US dollar at Thursday’s close.
Share prices on Bursa Malaysia closed slightly lower at midday as investors locked in profits. At 12.30pm, the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) declined 3.46 points to 1,586.78 after opening 0.84 point higher to 1,591.08 in the morning.
Turnover was 418.8 million shares worth RM619.9mil. Losers thumped gainers by 375 to 210 while 312 counters were traded unchanged.
Overnight, the Dow Jones Industrial Average (DJIA) continue its uptrend. The index added 93.47 points to 12,719.49 lifted by better retail and job statistics.
Dealers said the market started the day on a positive note as investors took the cue from overnight gains on Wall Street.
They said positive developments such as the Corporate Governance Blueprint 2011 was likely to spurred buying interest in the local market.
'Sentiment is generally cautious with some investors still looking to lock in profits from the recent gains. Overall volume was relatively thin,'' one dealers said, adding that most retail investors were reluctant to take heavy positions in the market.
HwangDBS Vickers Research said the overnight gains on DJIA could give a boost to sentiment on the local bourse today.
“We reckon the becnhmark FBM KLCI will probably move sideways with a slight upward bias, climbing towards its immediate resistance level of 1,605 ahead,” it said.
In terms of share price movements, HwangDBS said investors may be attracted to Genting group of companies following news report that it was eyeing a US$2.1bil mega theme park project in India; Gamuda and MMC given their project delivery partner role in the massive Klang Valley MRT project and Cahaya Mata Sarawak following the signing of a memorandum of understanding to negotiate for a joint venture arrangement to build a Manganese and Ferro silicon smelting plan in Sarawak at an investment cost of US$450 million. Meanwhile, the Prime Minister, in launching of MRT project this morning, said the project would be catalyst to RM15bil worth of real estate development in the next decade.
He added that starting this year, direct contribution from MRT project was estimated to be between RM3bil and RM4bil a year to gross national income.
On Bursa Malaysia, MSM-CB which topped the gainer's list jumped 25.5 sen, or 121.4 percent to 46.5 sen. It is also the most active counters traded with 21.4 million shares done. MSM added 7 sen to RM5.62.
After reaching record highs early this week, Philippine share prices on Thursday tumbled for the second consecutive day dragged by a string of regional concerns.
At the Philippine Stock Exchange, the composite index fell 22.90 points, or 0.52 percent to 4,375.85, while the broader all-shares dipped by 0.02 percent to 3,063.89.
Advancers beat decliners, 68 to 57, while 40 stocks were unchanged. A total of 4.27 billion stocks worth P4.71 billion changed hands.
“Despite the continued gains of some index performers, the local market still weakened brought by some foreign factors,” said Maria Arlysa Narciso of AB Capital Securities Inc.
Moody’s latest downgrade on Portugal and other European nations continue to temper optimism in the market. Adding to the downbeat sentiment was China’s decision to raise its one-year deposit and lending rates by a quarter percentage point to cool down its economy.
“The effects of cooling down their economy could pose a risk on its trading partners like US and Japan,” Narciso said.
Regional worries would continue to haunt the index, allowing the PSEi to move sideways in the final trading session of the week. Support is at 4,340 while resistance is at 4,500.
In the latest edition of The Market Call, First Metro Investments Corporation and University of Asia and the Pacific said foreign fund managers’ strategy, which favored developed equity markets in the first half and rotated back to emerging market equities in the second semester, would remain intact.
The study said a potential catch up scenario in local equities in the second half is warranted by attractive entry points, acceleration of “hot money” flows and economic growth premium.
The peso continued to enjoy a modest gain when it closed higher to the dollar Thursday buoyed by renewed risk appetite.
At the Philippine Dealing System, the local unit closed at 42.88 from Wednesday’s 42.89 finish. A trader said the Bangko Sentral ng Pilipinas has “seemingly allowed the peso to appreciate in order to rein in inflation as the Consumer Price Index for June was still on the higher end of their target range.”
“However, the BSP was still present in the market to slow the strength of the local pair as they bought $200 million to $250 million,” the trader said.
The dollar-peso pair opened at 42.86 and moved to a high of 42.91 and a low of 42.78. Total trading for the day slowed to $934.94 million from Wednesday’s $1.102 billion.
The exchange rate is expected to end the week at a range of 42.80 to 43.50. SINGAPORE
Singapore shares were higher at midday on Friday, with the benchmark Straits Times Index at 3,145.18, up 0.62 percent, or 19.31 points.
About 930.2 million shares exchanged hands.
The Stock Exchange of Thailand main index went up 6.16 points or 0.57 percent to close at 1,089.24 points at the end of trading session on Friday morning. The trade value was 17.26 billion baht.
The SET50 index ended at 764.32 points, up 5.07 points or 0.67 percent, with a total trade value of 11.57 billion baht.
The SET100 index rose 10.54 points or 0.64% to stand at 1,664.67 points, with a total turnover of 14.37 billion baht.
The SETHD index went up 5.18 points, or 0.50 percent, to 1,032.96 points, with a total turnover value of 4.32 billion baht.
The MAI index went up 1.17 points or 0.38 percent to close at 309.93 points, with total transaction value of 167.13 million baht.
Top five most active values were as follows;
PTTCH closed at 163.50 baht, up 5.00 baht (3.15 percent)
PTT closed at 337.00 baht, down 2.00 baht (0.59 percent)
TOP closed at 74.75 baht, down 1.25 baht (1.64 percent)
CPALL closed at 48.00 baht, up 0.50 baht (1.05 percent)
PTTAR closed at 41.75 baht, up 1.25 baht (3.09 percent)
The VN-Index was mixed Friday morning but finally closed up 0.08 percent at 430.32 points. On the HCM Stock Exchange, losers outnumbered gainers by 120-65. Market value only reached 70 per cent of yesterday's figure, standing at VND329.8 billion (US$16 million). The volume of trades dropped 14 per cent to just over 20 million shares.
Of the 10 leading shares by capitalisation, food producer Masan Group (MSN) hit its ceiling price for the second succesive session but only two others made gains, software giant FPT (FPT) up 4.1 per cent and Sacombank (STB) up 2.3 percent.
Meanwhile, insurer Bao Viet Holdings (BVH), Phu My Fertilisers (DPM), PetroVietnam Finance (PVF) and property developers Hoang Anh Gia Lai (HAG) and Vincom (VIC) fell between 0.7-2.9 percent. The most-active share was STB, with more than 1.8 million shares exchanged.
The HNX-Index on the Ha Noi Stock Exchange lost 0.3 percent to conclude the day at 72.84 points. Only one fifth of the listed codes made gains.
Trading value, however, climbed 14.5 per cent over yesterday's session to VND216.1 billion ($10.5 million) on a volume of 19.7 million shares.
Kim Long Securities Co (KLS) claimed the highest trading volume nationwide, with 2 million shares changing hands.
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