ASEAN KEY DESTINATIONS
Asean Stock Watch- June 22
The Dow Jones Industrial Average gained 109.63 points, or 0.91 percent, to close at 12,190.01 The S&P 500 rose 17.16 points, or 1.34 percent, to settle at 1,295.52.
The Nasdaq composite gained 57.60 points, or 2.19 percent, to close at 2687.26.
U.S. crude oil closed up 14 cents at US$93.91 a barrel, while gold was at US$1,546.00 an ounce.
Overseas investors bought $41.7 million more Indonesian shares than they sold yesterday, boosting net purchases for the year to $1.9 billion, according to exchange data. The MSCI Asia- Pacific Index of regional stocks gained for a second day after Greek Prime Minister George Papandreou won a confidence vote, spurring optimism the country won’t default on its debt.
“The confidence vote helped risk appetite, that’s why we are seeing some positive reaction in the market, including the rupiah,” said Gundy Cahyadi, a Singapore-based economist at Oversea-Chinese Banking Corp. “The market is still quite choppy and very sensitive to developments coming from Greece. Caution is still the word.”
The rupiah appreciated 0.1 percent to 8,598 per dollar as of 8:26 a.m. in Jakarta, according to data compiled by Bloomberg.
Indonesia’s economy may expand in the “upper end” of a range of 6 percent to 6.5 percent in 2011, the central bank said on June 9. Gross domestic product rose 6.1 percent last year.
The government’s 10-year bonds rose, halting four days of losses. The yield on the 8.25 percent notes due July 2021 fell two basis points, or 0.02 percentage point, to 7.68 percent, according to the Inter-Dealer Market Association.
Overseas funds boosted holdings of Indonesian bonds by 5 percent to 236.5 trillion rupiah ($27.5 billion) this month through June 20, according to figures from the debt-management office.
Indonesia’s rupiah strengthened for a second day after global funds added to holdings of the nation’s assets to benefit from growth in Southeast Asia’s biggest economy.
The FBM-KLCI was up 4.14 points at 9.30am to 1,564.93, the FBMACE was down 3.28 points to 4,222.55 and the FBMEmas was up 25.30 points to 10,730.85.
There were 198 gainers, 102 losers and 170 counters traded unchanged on the Bursa Malaysia with turnover of 108.083 million shares valued at RM130.669 million.
Philippine share prices on Tuesday bounced back as easing concerns about Greek’s debt problems led bargain hunters to pick up badly battered blue chips.
At the Philippine Stock Exchange, the composite index rose 58.70 points, or 1.41 percent to 4,211.81, while the broader all-shares index rose 9.48 points, or 0.32 percent to 2,953.49.
Market breadth was negative as decliners beat advancers, 67 to 63, while 41 issues were unchanged. A total of 1.35 billion shares worth P8.21 billion changed hands, inclusive of a P2.6-billion block sale of shares of Aboitiz Equity Ventures Inc.
“Coming from a week of drops and disappointments, [Tuesday’s] gain was pushed by better performances of major foreign markets and a recovery of a few blue chips,” said Maria Arlysa Narciso of AB Capital Securities Inc.
Local stocks joined the rally in major global bourses after the European Union vowed to take steps to prevent Greece’s credit troubles from affecting other struggling economies in the region.
Bank issues, which have been struggling in previous sessions amid inflationary pressures and monetary conditions, bounced back as Banco de Oro Unibank Inc. and Bank of the Philippine Islands rose 3.86 percent and 3.43 percent respectively.
The main index returned above its support of 4,200, but it would need stronger positive drivers to keep it above that level, Narciso said.
“While we are not under the mercy of external developments, events unfolding in Europe and US still hold some influence over the local market’s direction,” she said.
The peso, along with most Asian currencies, also recovered Tuesday after Europe vowed to take steps in containing Greece’s debt crisis.
At the Philippine Dealing System, the local unit closed at 43.46 against the US dollar, up 20 centavos from last week’s 43.66 finish.
A trader said that the dollar-peso direction still hinges on external developments, specifically those in the euro zone.
The currency pair opened at 43.57 and moved to a high of 43.61 and a low of 43.45.
“The peso is recovering. But risk aversion will still linger because of what’s happening in Greece. Until this is not resolved, the peso will be on the down trend,” Marcelo Ayes, RCBC senior vice president said.
Total trading eased to $685.25 million from last week’s $1.60 billion.
Traders expect the dollar-peso pair to trade at 43 to 43.50.
Singapore shares opened higher on Wednesday, with the benchmark Straits Times Index at 3,069.33 in early trade, up 0.53 percent, or 16.39 points.
Around 94.4 million shares exchanged hands.
Gainers beat losers 137 to 19.
The Stock Exchange of Thailand main index went up 14.63 points or 1.44 percent to close at 1,027.72 points at the end of trading session on Tuesday afternoon. The trade value was 22.25 billion baht.
The SET50 index ended at 717.78 points, up 12.16 points or 1.72 percent, with a total trade value of 16.70 billion baht.
The SET100 index went up 25.26 points or 1.64 percent to stand at 1,563.25 points, with a total turnover of 19.05 billion baht.
The MAI index went up 2.77 points or 0.95 percent to close at 295.12 points, with total transaction value of 719.76 million baht.
Top five most active values were as follows;
PTTCH closed at 150.00 baht, up 5.50 baht (3.81 percent)
PTT closed at 334.00 baht, up 5.00 baht (1.52 percent)
BBL closed at 151.00 baht, up 2.00 baht (1.34 percent)
KBANK closed at 116.00 baht, up 5.00 baht (4.50 percent)
TOP closed at 72.50 baht, up 2.50 baht (3.57 percent)
The June Consumer Price Index increased by 1.21 and 0.69 percent in Hanoi and HCM City respectively, although the rate of increase narrowed.
On the HCM Stock Exchange, the VN-Index closed the day on 442.74 points, a 2.6 percent high. Gainers outnumbered losers by 191-48.
Of the 10 largest capitalised shares, only Sacombank (STB) ended unchanged, no codes posting losses. Masan Group (MSN), the only advancing code yesterday, pared earlier declines to end on a 1 percent up.
Three share traders, including insurer Bao Viet Holdings (BVH), Phu My Fertilisers (DPM) and PetroVietnam Finance (PVF), hit the daily limit of 5 percent.
Trade value dived by 20.5 per cent from yesterday's session to VND585.3 billion (US$28.4 million) while trade volume went down 32.2 percent, to end at 29.7 million shares.
Saigon Securities Inc (SSI), which hit its ceiling, was the most active code with around 2.34 million of its shares changing hands.
On the Ha Noi Stock Exchange, the HNX-Index jumped by 2.3 percent, to end on 77.05 points. Gainers were three times higher than losers.
Trade was brisker than on the southern bourse, jumping by more than 40 percent in both trading value and volume. Roughly VND587.87 billion ($28.5 million) worth of shares (52.7 million) were exchanged.
PetroVietnam Construction (PVX) traded the highest volume shares (6.6 million), reaching a maximum gain of 5 percent in a single session.
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