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ASEAN STOCK WATCH 17 June 2010

ASEAN Markets To Grow After IMF News

Shayne Heffernan
www.livetradingnews.com

ASEAN Shares will consolidate today and gear up for strong growth after the IMF estimates and a brighter outlook for the region has shifted sentiment.

Overnight in the USA The S&P 500 drifted between gains and losses after a 2.4 percent rally yesterday erased the index’s loss for the year. Apple Inc. and JPMorgan Chase & Co. paced gains in computer companies and banks.

FedEx, the largest air-cargo carrier, tumbled 3 percent after forecasting annual profit that may trail the average analyst estimates by as much as 13 percent on higher costs for health-care and pensions.

U.S. housing starts fell 10 percent, the biggest decline since March 2009, to a 593,000 annual rate, from a revised 659,000 pace in April that was less than previously estimated, Commerce Department figures showed. Building permits, a sign of future construction, unexpectedly fell to a one-year low. Single-family starts suffered the largest drop since 1991.

Fannie Mae and Freddie Mac shares tumbled at least 39 percent after their regulator told the two mortgage-finance companies to delist their stock from the New York Stock Exchange.

European stocks closed little changed, with the Stoxx Europe 600 Index at the highest level in a month, as gains by insurers offset a decline by auto-industry companies and a slump in technology shares after Nokia Oyj cuts its forecasts.

Stock Exchange of Thailand President Charamporn Jotikasthira told reporters combined earnings of listed firms this year would rise to at least 600 billion baht ($18.52billion) from last year’s 440 billion baht.

Thai shares trade at a 12-month forward price-to-earnings ratio of 10.6, the lowest in Southeast Asia, compared with Vietnam’s 11.0, Philippines’ 12.0, Singapore’s 12.8, Malaysia’s 13.0 and Indonesia’s 13.3.

Thailand, Southeast Asia’s second-largest economy, went through another bout of political unrest from March to May, which put off foreign investors. On Wednesday, investors bought Thai energy shares as oil prices rose.

PTT PTT.BK, its exploration flagship PTT Exploration and Production PTTE.BK and olefins maker PTT Chemical PTTC.BK all rose over 2 percent. A Phillip Securities analyst recommended such shares, saying their second-quarter results should be favourable.

Indonesian shares climbed to their highest level in six weeks on Wednesday as investors piled into index heavyweights amid general optimism over the economy on a day its central bank announced measures to manage capital flows.

Jakarta’s benchmark stock index finished the session 1 percent higher, at one point touching its highest since May 5. Solid economic fundamentals in Indonesia have attracted foreign inflows into shares.

Resource shares gained in line with strength in oil, which rose above $77 on Wednesday to its highest level since mid-May. Adaro Energy (ADRO), the second-largest coal miner, rose 4.8 percent, coal miner Indo Tambangraya Megah (ITMG), a unit of Thailand’s Banpu (BANP.BK), gained 2.8 percent and energy firm Indika Energy (INDY) climbed 3.5 percent.

The market has risen 12.8 percent so far this year, Southeast Asia’s best performer, backed by $545 million of net foreign buying.

Indonesia’s central bank said it would issue longer-dated debt and announced other policy changes in a bid to tackle strong capital inflows and divert them away from the short end of the market.

ASEAN economies are set to lead the world in the next 20 years, and it is not just my opinion, if you read the report from the IMF today it will clearly spell out all the reasons why everyone should be invested in ASEAN.

Asian gross domestic product will exceed that of the Group of Seven major industrial nations by 2030, the International Monetary Fund said on Tuesday.

Within five years, Asia’s economy including Australia and New Zealand will be around 50% larger than it is today in purchasing-power-parity terms, accounting for more than a third of global output. China and India are leading the way out of recession. But the phenomenon is by no means limited to these two nations, the lender added.

“The possibility that Asia could become the world’s largest economic region by 2030 is not idle speculation,” Anoop Singh, director of the IMF’s Asia and Pacific Department wrote in the IMF’s Finance & Development magazine. “It seems very plausible, based on what Asia has already achieved in recent decades.”

Asia is making a stronger contribution to the global recovery than any other region, Singh noted. Recovery in many Asian economies is being driven by two engines—exports and strong domestic demand. Robust domestic demand reflects in part policy stimulus, but resilient private demand is also a factor.

A key policy challenge for many nations in Asia is to build on domestic demand over the medium term and rely less on exports, Singh said. This would also assist in managing global imbalances. Greater exchange rate flexibility will help in raising private consumption and reorient investment toward production for the domestic economy. Other policy measures needed to improve domestic demand include investment in infrastructure.

The lender said Asia’s role in the world economy continues to grow, both in world trade and finance and in economic governance, through institutions such as the IMF—and it will grow further. The broader global economy can draw from them a rich set of lessons, the IMF said.

Global Markets By Region

Americas
Price
Change (%)
1 Year %
Last Updated
flag
Toronto Composite
11,921.05
+13.51 (0.11%)
+14.86%
Jun 16, 5:00pm
flag
Mexican Bolsa IPC Index
32,685.40
+446.99 (1.39%)
+31.14%
Jun 16, 5:00pm
flag
Brazil Bovespa Index
64,750.71
+308.71 (0.48%)
+25.20%
Jun 16, 5:00pm
flag
Argentina Merval Index
2,326.09
+43.58 (1.91%)
+40.59%
Jun 16, 5:00pm
flag
Chile IPSA Index
4,035.98
+49.71 (1.25%)
+26.10%
Jun 16, 5:00pm

Asian Pacific
Price
Change (%)
1 Year %
Last Updated
flag
Nikkei 225 Index
10,067.159
+179.26 (1.81%)
+0.27%
Jun 16, 5:00pm
flag
ASX All Ordinaries
4,572.10
+54.50 (1.21%)
+13.44%
Jun 16, 5:00pm
flag
Seoul Composite
1,690.03
-0.57 (-0.03%)
+19.65%
Jun 16, 5:00pm
flag
Hong Kong Hang Seng
20,062.15
+0.00 (0.00%)
+8.45%
Jun 16, 5:00pm
flag
Shanghai
2,569.94
+0.00 (0.00%)
-7.87%
Jun 16, 5:00pm
flag
Taiwan Weighted
7,454.06
+66.66 (0.90%)
+19.73%
Jun 16, 5:00pm
flag
Singapore Straits Times
2,846.94
+28.73 (1.02%)
+22.90%
Jun 16, 5:00pm
flag
Bombay Sensex Index
17,412.83
+74.66 (0.43%)
+17.06%
Jun 16, 5:00pm
flag
Jakarta Composite
2,830.17
+3.33 (0.12%)
+36.73%
Jun 16, 5:00pm
flag
Kuala Lumpur Composite
1,303.13
+1.21 (0.09%)
+19.43%
Jun 16, 5:00pm
flag
PSE Composite
3,307.65
+25.23 (0.77%)
+26.59%
Jun 16, 5:00pm
flag
Sri Lanka All Share
4,606.69
-6.07 (-0.13%)
+101.51%
Jun 16, 5:00pm

Europe
Price
Change (%)
1 Year %
Last Updated
flag
FTSE 100 Index
5,237.92
+20.12 (0.39%)
+21.08%
Jun 16, 5:00pm
flag
Paris CAC 40
3,675.93
+14.42 (0.39%)
+14.17%
Jun 16, 5:00pm
flag
Frankfurt Index
6,190.91
+15.86 (0.26%)
+26.61%
Jun 16, 5:00pm
flag
Milan BCI General
15,743.00
+0.00 (0.00%)
+0.00%
Jun 16, 5:00pm
flag
Belgium 20 Index
2,513.80
+4.49 (0.18%)
+25.13%
Jun 16, 5:00pm
flag
Swiss Market Index
6,490.07
+5.37 (0.08%)
+20.18%
Jun 16, 5:00pm
flag
OSE Norway All Share
414.39
-3.78 (-0.90%)
+19.40%
Jun 16, 5:00pm
flag
ATX Vienna
2,410.75
-16.95 (-0.70%)
+13.35%
Jun 16, 5:00pm
flag
Amsterdam Total Return General
334.76
+0.94 (0.28%)
+29.62%
Jun 16, 5:00pm
flag
Madrid General
1,006.97
+16.77 (1.69%)
+2.12%
Jun 16, 5:00pm
flag
Stockholm General Index
325.66
-0.32 (-0.10%)
+33.28%
Jun 16, 5:00pm

Africa/Middle East
Price
Change (%)
1 Year %
Last Updated
flag
Israel TA 100 Index
1,023.72
-8.34 (-0.81%)
+25.77%
Jun 16, 5:00pm
flag
TEL-TECH INDEX
271.03
-1.95 (-0.71%)
+31.55%
Jun 16, 10:45am
flag
TEL-TECH-15 INDEX
233.29
-2.00 (-0.85%)
+27.49%
Jun 16, 10:45am

 


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