ASEAN KEY DESTINATIONS
9 July 2014
The Straits Times Index (STI) ended 7.88 points lower or -0.24% to 3275.46 taking the year-to-date performance to +3.49%.
The FTSE ST Mid Cap Index declined -0.06% and the FTSE ST Small Cap Index gained +0.09%. The top active stocks were SIIC Environment (-9.94%), UOB (-1.28%), DBS (-0.35%), Ezion (-3.38%), SingTel (unchanged).
The outperforming sector today was represented by the FTSE ST Health Care Index (+0.56%). The two biggest stocks of the FTSE ST Health Care Index are Raffles Medical Group (+1.84%) and Biosensors International Group (-0.53%). The underperforming sector was the FTSE ST Technology Index, which declined -0.92% with Silverlake Axis’s share price declining -1.75% and STATS ChipPAC’s share price remaining unchanged. The FTSE ST Consumer Services Index gained +0.04%. The FTSE ST Real Estate Index gained +0.15%. The FTSE ST Utilities Index declined -0.80%.
The three most active Exchange Traded Funds (ETFs) by value today were IS MSCI India (-1.61%), DBXT MSCI Korea ETF (-0.90%), SPDR Gold Shares (+0.29%).
The three most active Real Estate Investment Trusts (REITs) by value were CapitaMall Trust (-0.26%), Suntec REIT (-0.56%), CapitaCommercial Trust (+0.30%).
The most active index warrants by value today were HSI23800MBeCW140828 (-29.76%), HSI23600MBeCW140730 (-41.43%), HSI23600MBePW140828 (+29.31%).
The most active stock warrants by value today were UOB MB eCW140901 (-15.97%), DBS MB eCW141201 (-5.96%), DBS MB eCW140901 (-12.33%).
Singapore Stock Market
*ST Index 3,275.46 -7.88 3,283.34 -8.23
Volume: 2,596.2M 1,522.3M
Value: $1,065.6M $928.3M
Gainers/Losers: 186/235 185/223
Daily Market Commentary (Securities)
9 Jul 2014
The FBM KLCI index lost 1.49 points or 0.08% on Wednesday. The Finance Index increased 0.19% to 17431.03 points, the Properties Index dropped 0.50% to 1454.39 points and the Plantation Index down 0.22% to 9213.85 points. The market traded within a range of 4.21 points between an intra-day high of 1892.17 and a low of 1887.96 during the session.
Actively traded stocks include CSL, SUMATEC, INARI-CA, MAS, IRETEX-LA, SONA-WA, BJCORP, MULPHA, HOVID-WB and PDZ. Trading volume decreased to 1783.00 mil shares worth RM1985.00 mil as compared to Tuesday’s 1788.15 mil shares worth RM2293.90 mil.
Leading Movers were IHH (+9 sen to RM4.61), TM (+6 sen to RM6.42), ASTRO (+2 sen to RM3.34), FGV (+2 sen to RM4.16) and HLBANK (+6 sen to RM14.00). Lagging Movers were IOICORP (-7 sen to RM5.18), PETGAS (-30 sen to RM24.26), PETDAG (-26 sen to RM23.14), KLCC (-7 sen to RM6.51) and PPB (-10 sen to RM14.84). Market breadth was negative with 341 gainers as compared to 498 losers.
The KLCI index fell to 1891.16 points as investors took profit from the record high following the decline of both US and European stocks. The performance of the local bourse was in line with the overall Asian market after the producer-price index in China declined more than the estimates of analyst.
Indonesian offshore markets celebrate Jokowi's claimed poll win
By Fransiska Nangoy
Indonesia's currency and bond markets rose in offshore trade on Wednesday after the political party of reform-minded candidate Joko "Jokowi" Widodo claimed he had won a closely fought presidential election.
However, the party of rival candidate Prabowo Subianto, a former special forces general, said it was too early to call the outcome.
Indonesia's domestic markets were closed on Wednesday. But the rupiah rose 2 percent in offshore non-deliverable forwards to levels around 11,525 per dollar.
Analysts anticipated big gains in the Jakarta stock markets on Thursday. Stock investors had in any case been cautiously primed for a change of guard and therefore thinking in Southeast Asia's largest economy.
"We are in for a euphoric market in the next week," said Fajar Hidayat, a director at CIMB-Principal Asset Management in Jakarta.
"We will start increasing our equity holdings. In the past few months we've been on neutral for our equity funds."
Indonesia's stock market has risen 2.5 percent since Friday to its highest since mid-May. In the year to date through Tuesday it has gained nearly 18 percent.
The rupiah has risen 3 percent against the dollar since last week in domestic trade and closed on Tuesday at around 11,600 per dollar. Local bonds have rallied, too, despite the threat of an imminent rise in administered fuel prices and in policy rates.
Indonesia's high-yielding dollar bonds rallied on Wednesday, with bonds due in 2044 trading as much as 2.5 points higher at 118/118.5 cents to a dollar. That took the yields on the bonds, issued in January with a coupon of 6.75 percent, to 5.5 percent.
"Indonesia is on fire," one trader in Singapore said in a note to clients.
Foreign investors, who own almost 80 percent of the free-floating Indonesian stock market, have been buying, although their investments have slowed to a trickle in the past month.
Data from the stock exchange showed that by Tuesday foreign investors had bought a net 46.5 trillion rupiah ($4 billion) so far this year.
Analysts at local brokerage Trimegah Securities said local institutional investors were holding about $2.9 billion in cash after selling out of stocks when the presidential race changed from being marginally in Jokowi's favour to a tightly fought one. These investors are preparing to re-enter the market, Trimegah said.
Still, how far the Jakarta stock exchange rallies will depend ultimately on what kind of team Jokowi picks and how he shapes policies and navigates through a divided legislature.
Hidayat said he would pick stocks in the infrastructure sector, which is set to benefit from the big spending plans both candidates had outlined in their campaigns.
"We are looking at construction companies, cement makers and other companies related to the infrastructure sector," he said.
Jakarta Stock Exchange
Top Gainer Price % Change
RAJA Rukun Raharja Tbk... 605 +9.01%
LPIN Multi Prima Sejah... 5,000 +8.11%
DEFI Danasupra Erapaci... 1,250 +6.84%
RMBA Bentoel Internasi... 495 +6.45%
PSKT Pusako Tarinka Tb... 590 +6.31%
WOMF Wahana Ottomitra 260 +6.12%
PICO Pelangi Indah Can... 188 +4.44%
Top Loser Price % Change
OKAS Ancora Indonesia 131 -20.12%
SOBI Sorini Agro Asia 1,850 -15.91%
BAYU Bayu Buana Tbk 525 -13.22%
BUMI Bumi Resources Tb... 161 -7.47%
TFCO Tifico Fiber Indo... 560 -7.44%
STTP Siantar Top Tbk. 2,810 -6.33%
SMDR Samudera Indonesi... 3,000 -6.25%
As of 9 July 2014 Unit: M.Baht
Type Buy Sell Net
Institution 2,831.51 3,530.80 -699.30
Proprietary 3,154.31 3,069.94 84.37
Foreign 10,005.80 8,067.73 1,938.07
Individual 20,614.68 21,937.82 -1,323.15
Total Trading Value 36,606.30 M.Baht
Vietnam index ends flat, may rise soon
Vietnam's benchmark VN Index was almost unchanged on Wednesday, closing at 591.6 points as profit taking in big-caps erased gains in smaller shares.
Hanoi-based lender BIDV rose 1.35 percent while dairy product maker Vinamilk lost 0.78 percent, having fallen from the highest level in nearly two months last Friday.
"But money rotated among shares without flowing out of the market, so the index is likely to edge up in coming sessions," said analyst Le Dac An of Tan Viet Securities.
Here is a snapshot of the VN Index at the close
VN Index 591.6
PREV. CLOSE 591.47
% CHANGE 0.02%
SE Asia Stocks -Mixed; Philippine shares fall on concerns over weak China demand
Philippine stocks fell to their lowest in nearly a week while other Southeast Asian markets remained rangebound as lower June inflation in China raised concerns over weak demand that could hurt growth in the world's second largest economy.
The Philippine index ended 0.6 percent weaker, its lowest since July 3, led by industrial and financial shares amid expectations of an interest rate hike.
Although Philippine inflation slowed slightly in June, growing price pressures have been adding to expectations the central bank will raise interest rates for the first time in three years, possibly as early as this month.
China's consumer inflation cooled slightly more than expected in June, pointing to lingering weakness in the economy which could prompt Beijing to launch further stimulus measures to shore up growth.
"There are no compelling reasons to chase stock prices higher," said Song Seng Wun, a Singapore-based CIMB economist.
"China's inflation picture remains stable, allowing the policy planners to continue with targeted easing to support the Chinese economy," he said.
"No real reason to get excited. People are adopting a wait-and-see attitude, watching the annual China-U.S. strategic and economic dialogue and perhaps looking out for the upcoming release of the latest Fed Reserve's minutes from its 17-18 June 2014 FOMC meeting."
The Singapore index fell 0.2 percent, while Malaysia ended 0.1 percent weaker with a foreign outflow of $16.88 million worth shares.
The Thai benchmark index recovered from early losses and ended little changed, while the Vietnam index ended 0.02 percent up.
The Jakarta stock market was closed due to presidential elections.
SOUTHEAST ASIAN STOCK MARKETS
Market Current Prev Close Pct Move
TR SE Asia Index* 437.77 437.65 +0.03
Singapore 3275.46 3283.34 -0.24
Kuala Lumpur 1891.16 1892.65 -0.08
Bangkok 1507.92 1507.58 +0.02
Manila 6903.79 6948.52 -0.64
Ho Chi Minh 591.60 591.47 +0.02