ASEAN KEY DESTINATIONS
Asean Stock Watch- June 10
With traders going bargain hunting following recent weakness on Wall Street, stocks moved mostly higher during trading on Thursday. The markets also benefited from positive sentiment generated by upbeat trade data.
The major averages pulled back well off their highs going into the close but remained in positive territory. The Dow rose 75.42 points or 0.6 percent to 12,124.46, the Nasdaq climbed 9.49 points or 0.4 percent to 2,684.87 and the S&P 500 advanced 9.44 points or 0.7 percent to 1,289.00.
The strength on Wall Street came as traders looked to pick up stocks at reduced levels following the selling seen in recent sessions, which pulled the major averages down to two-month lows.
Additional buying interest was generated by a report from the Commerce Department showing that the U.S. trade deficit unexpectedly narrowed in April as the value of exports rose to a record high.
The report showed that the trade deficit narrowed to $43.7 billion in April from a revised $46.8 billion in March. Economists had expected the trade deficit to widen to $49.0 billion from the $48.2 billion originally reported for the previous month.
The unexpectedly narrower deficit came as the value of exports rose by 1.3 percent to a record high of $175.6 billion, while the value of imports fell 0.5 percent to $219.2 billion. The drop in the value of imports was largely due to reduced imports from Japan as a result of the recent earthquake.
Meanwhile, traders largely shrugged off a separate report from the Labor Department showing an unexpected increase in initial jobless claims in the week ended June 4th.
The Indonesian stock market has closed lower in two consecutive trading days, shedding more than 35 points or 1.0 percent along the way. The Jakarta Composite Index finished just above the 3,805-point plateau, but now analysts are forecasting a modest recovery at the opening of trade on Friday.
The global forecast for the Asian markets is fairly upbeat as several of the regional bourses have been heavily oversold, with better than expected trade data from the U.S. adding to the sentiment. Gold, oil and financial stocks figure to lead the way, although property stocks may weigh. The European and U.S. markets finished firmly higher, and the Asian markets are tipped to follow suit.
The JCI finished modestly lower on Thursday following losses from the resource stocks and the financial shares.
For the day, the index lost 19.63 points or 0.5 percent to finish at 3,806.19 after trading between 3,797.16 and 3,829.81.
Among the actives, Jaya Konstruksi Manggala Pratama jumped 7.4 percent and Salim Ivomas Pratama surged 14 percent, while Timah declined 1.9 percent and Medco Energi Internasional shed 2.9 percent.
The lead from Wall Street is finally positive as stocks moved mostly higher on Thursday, with traders going bargain hunting following the selling seen in recent sessions, which pulled the major averages down to two-month lows. The markets also benefited from positive sentiment generated by upbeat trade data.
The FBM KLCI advanced in Friday's early morning trade, rising 3.73 points or 0.24 percent to 1,554.62 at 9.40am on the buying of selected blue-chip stocks.
Among the gainers were British American Tobacco (M) and Genting Bhd which were up both up 14 sen to RM46.38 and RM11.24 respectively.
Nymex crude oil rose 11 cents to US$102.04 per barrel. Spot gold fell 60 cents to US$1,543.50 per ounce. The ringgit was quoted at 3.015 to the US dollar.
Philippine share prices on Thursday resumed their downward trek following a lackluster report by the Federal Reserve confirming a slowdown in US economic growth. At the Philippine Stock Exchange, the composite index lost 31.10 points, or 0.73 percent to 4,224.34, while the broader all-shares index fell 12.84 points, or 0.43 percent to 2,981.98.
Decliners beat advancers, 82 to 49, while 46 issues were unchanged. Volume turnover was thin as only 1.38 billion stocks worth P3.56 billion changed hands.
“Market sentiment has noticeably been weak lately as foreign woes continue to drag the market lower,” said Prince Anthony Yeung of AB Capital Securities Inc.
The tepid 4.9 percent Philippine gross domestic product growth, a contraction Japan, the debt crisis in Europe and the sluggish US economy cast the dark clouds across global financial markets.
“At some point, these weaknesses will find their way to corporate bottom-lines, a major factor moving stock prices,” said Jun Calaycay of Accord Capital Equities Corp. While the main index has been able to hold above the 4,200 psychological support, the lack of positive leads amid a stream of concerns opens the prospects of a further slide to test the more valid 4,170 support, he added.
Investors may find comfort in the inflation rate coming in at the low end of the target range of the Bangko Sentral ng Pilipinas, which may allow the Monetary Board to hold off another interest rate hike, Yeung said.
The peso moved sideways on Thursday as investors stayed on the sidelines amid speculation of a possible third round of quantitative easing following a slowdown in US economic growth.
At the Philippine Dealing System, the peso closed at 43.23 against the US dollar, or a centavo stronger than the 43.24 finish the previous trading day.
Traders noted a tight trading as the dollar-peso pair opened at 43.30, moving to a high of 43.32 and a low of 43.225.
Total trading volume eased to $742.88 million from Wednesday’s $894.52 million. The currency pair is expected to end the week at 42.80 to 43.50 range.
The Stock Exchange of Thailand main index went up 2.27 points or 0.22 percent to close at 1,016.85 points at the end of trading session on Thursday afternoon. The trade value was 31.62 billion baht.
The SET50 index ended at 710.66 points, up 3.12 points or 0.44 percent, with a total trade value of 22.29 billion baht.
The SET100 index rose 5.39 points or 0.35% to stand at 1,548.31 points, with a total turnover of 26.08 billion baht.
The MAI index went down 0.72 points or 0.25 percent to close at 285.84 points, with total transaction value of 593.78 million baht.
Top five most active values were as follows;
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