ASEAN KEY DESTINATIONS
Asean Stock Watch- June 17
On Wall Street, the Dow Jones Industrial Average plummeted 178.84 points or 1.48 percent to 11,897.27, after debt watcher Moody’s Investors Service said it may slash the credit ratings of three large French banks, citing their exposure to Greek debt. Economic data showing high consumer prices and weakness in the manufacturing and industrial sector also dragged down US stocks.
Indonesia’s benchmark stock index tumbled 1.4 percent on Thursday amid gloomy news from both Europe and China that prompted investors to slice the risk in their portfolios.
China announced its inflation rate during May was 5.5 percent, a 34-month high, creating expectations it would soar to 6 percent in June.
“China’s inflation in May was the highest since 2008 and in my opinion, there is a 90 percent chance of debt default in Greece,” said Janson Nasrial, an analyst at AmCapital Indonesia.
Without positive sentiment on the domestic market to buffer the foreign pessimism, the Indonesian market was vulnerable to a further drop today, Janson said.
The Jakarta Composite Index closed at 3,740.47, slipping 53.78 points. More than 5.29 billion shares worth Rp 4.24 trillion ($492 million) changed hands. Decliners far outpaced gainers, 217 to 31, while foreign investors sold Rp 166 billion more in stocks than they bought.
All sectors experienced losses, with agriculture (down 2.2 percent) and mining (off 1.9 percent) among those enduring the sharpest fall.
“Commodities shares that are related to palm oil, coal and nickel are vulnerable to global commodity prices,” Janson said.
The nation’s largest nickel producer International Nickel Indonesia receded 2.2 percent to Rp 4,475. Aneka Tambang, its largest rival, stumbled backward 3.53 percent to Rp 2,050. Nickel futures fell in London, curbing Aneka’s revenue outlook.
The largest plantation company on the boards, Astra Agro Lestari closed at Rp 22,700, shedding 1.5 percent, while investors chopped 3.5 percent off the value of Bakrie Sumatera Plantation, which ended the day at Rp 420. The slide came as crude palm oil futures dipped 2.4 percent for September delivery in Malaysia.
The rupiah rolled back 0.4 percent against dollar to trade at 8,583 per Greenback.
The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives was slightly better Fridaymorning supported by improved sentiment in the underlying cash market.
At 9.55am, June 2011 was seven sen better at 1,554.5, July 2011 rose 6.5 points to 1,553.5 and Sept 2011 was up six sen to 1,553.
Turnover stood at 1,662 lots while open interest amounted to 23,604 contracts.
Meanwhile, the underlying benchmark FBM KLCI was 7.27 points higher at 1,561.51, after 55 minutes of trading.
Philippine share prices on Thursday failed to sustain the previous session’s gains, resuming their downtrend following a massive sell-off in Wall Street overnight.
At the Philippine Stock Exchange, the composite index fell 28.30 points, or 0.67 percent to 4,173.08, while the broader all-shares index lost less than a point to 2,947.98.
Decliners beat advancers, 65 to 60, while 46 stocks were unchanged. A total of 2.02 billion stocks worth P5.18 billion stocks changed hands.
“The index dropped, dragged by weaknesses from the global markets and the lack of optimism locally,” said Maria Arlysa Narciso of AB Capital Securities Inc.
While there were several encouraging economic data such as higher remittances and a credit upgrade, the “enthusiasm” was not enough to lift the market, Narciso added.
Local shares showed resiliency during the middle of the session, swinging back from the negative to positive territory led by Aboitiz Equity Ventures Inc. The weakness of Philippine Long Distance Telephone Co., however, pulled the benchmark index lower, mimicking the weakness in Asian markets.
Concerns overseas may continue to drag the main index today.
“Although we have set sights on closing above 4,200 this Friday, the challenge is to find the right amount of push for the index to even come close to this level,” said Narciso.
The peso continued to slide against the dollar hammered by fears that Europe’s debt crisis could move out of control and worries over China’s economy.
At the Philippine Dealing System, the local unit shed 10.5 centavos to close at 43.525 against the US dollar from Wednesday’s 43.42 finish.
The dollar-peso pair opened at 43.50 and moved to a high of 43.56 and a low of 43.43.
Total trading volume eased to $733.90 million from $848.82 million the previous trading day. The pair is expected to end the week at a range of 43 to 43.60.
Singapore shares opened higher on Friday, with the benchmark Straits Times Index at 3,025.14 in early trade, down 0.16 percent, or 5.01 points.
Around 26.3 million shares exchanged hands.
The Stock Exchange of Thailand main index went down 10.76 points or 1.04 percent to close at 1,019.55 points at the end of trading session on Thursday Afternoon. The trade value was 19.74 billion baht.
The SET50 index ended at 710.47 points, down 8.97 points or 1.25 percent, with a total trade value of 11.25 billion baht.
The SET100 index fell 18.65 points or 1.19 percent to stand at 1,549.40 points, with a total turnover of 14.97 billion baht.
The MAI index went down 1.97 points or 0.66 percent to close at 295.28 points, with total transaction value of 967.77 million baht.
Top five most active values were as follows;
KBS closed at 12.70 baht, up 0.30 baht (2.42 percent)
JAS closed at 3.06 baht, up 0.10 baht (3.38 percent)
RAIMON closed at 1.32 baht, up 0.01 baht (0.76 percent)
BBL closed at 150.00 baht, down 1.000 baht (0.66 percent)
The VN-Index advanced 0.84 percent to close yesterday's trading at 445.17 points – the first rising session of the week – while liquidity continued to decline.
On the HCM City Stock Exchange, 34.5 million shares, worth VND572.9 billion (US$27.8 million), changed hands, representing a decline of 31 percent in volume and 33 percent in value.
Advancers outnumbered decliners by 152-71, blue chips leading market rebound. Eight out of 10 of the largest capitalised shares, including real estate developer Vincom (VIC), hit the ceiling price of 5 per cent for the fourth day in a row.
Saigon Securities Inc (SSI) shares were the most actively traded with 2.6 million exchanged yesterday, closing at the ceiling price of VND19,900 ($0.97).
Only insurer Bao Viet Holdings (BVH) decreased 1.8 percent while dairy giant Vinamilk (VNM) closed unchanged.
On the Hanoi Stock Exchange, the HNX-Index climbed 1.21 per cent to close yesterday's session at 78.68 points.
Trading value exceeded that of the HCM City market, reaching VND720 billion ($35 million) on a volume of 58.3 million shares, a rise of around 22 percent in both volume and value compared to Wednesday.
Gainers narrowly outnumbered losers by 141-139, with Kim Long Securities (KLS) shares continuing to be the most heavily-traded nationwide by a volume of 7.4 million.
Stock analysts at the FPT Securities Co said that investors were betting on a continued uptrend ahead of the release of new economic data in a couple of days, predicting that the consumer price index (CPI) was set to rise by only 0.2-0.25 percent in June, the lowest rise in six years, along with lowering interest rates.
"In addition, the proposal by the Ministry of Finance to the Government to grant tax exemption to securities investors from August 2011 until the end of 2012 has had a positive impact on investor psychology," analysts said, adding that the market was still experiencing a sensitive period.
Foreign investors returned as net sellers on the HCM City bourse after just one session of net buying, unloading over 4.5 million shares, worth VND44.6 billion ($2.2 million). Foreign investors remained as net buyers on the Hanoi bourse, picking up just over VND2 billion ($102,400) worth of shares.
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