ASEAN KEY DESTINATIONS
Asean Stock Watch- June 28
U.S. stocks rose, sending the Standard & Poor’s 500 Index higher for the first time in four days, after regulators issued new capital rules to safeguard the global financial system, offsetting an unexpected stagnation in American consumer spending.
Apple Inc. (AAPL) rose 1 percent after Morgan Stanley said the company’s order cuts will ease and production of iPhones and iPads will begin “ramping aggressively.” Stanley Black & Decker Inc. (SWK) gained 1.4 percent after the tool company offered to buy Sweden’s Niscayah AB for $1.2 billion. DuPont Co. and Alcoa Inc. (AA) fell, and the S&P GSCI Index of 24 commodities sank to the lowest level since January as oil and metals prices fell.
The S&P 500 rose 0.4 percent to 1,273.88 at 9:53 a.m. in New York. The Dow Jones Industrial Average gained 66.49 points, or 0.6 percent, to 12,001.07.
The Jakarta Composite index (JCI) dropped 35.13 points, or 0.9 percent, to 3,813.43, declining for the first time in six days.
PT Bank ICB Bumiputera (BABP IJ) jumped 8.1 percent to 120 rupiah, the steepest increase since May 5, after the Indonesian lender said shareholders approved a cash dividend payout of 30 percent of last year’s net income, or 0.66 rupiah a share.
PT Perusahaan Perkebunan London Sumatra Indonesia (LSIP IJ), the nation’s third-largest plantation stock by market value, fell 1.1 percent to 2,275 rupiah, the biggest drag on the Jakarta Agricultural Index. Palm oil futures declined as much as 1.5 percent to 3,070 ringgit ($1,005) a metric ton in Kuala Lumpur today, falling for a fourth straight day.
PT Skybee (SKYB IJ), a mobile-phone manufacturer, fell 4.6 percent to 620 rupiah, the sharpest drop since April 18. PT Sucorinvest Central Gani wrote in a report today Skybee’s shareholders approved a plan to sell new shares amounting to 10 percent of its capital. Selling new shares may dilute the stakes of existing shareholders. Corporate Secretary Stephanus Felix Kristani couldn’t be reached when called at his office.
Share prices on Bursa Malaysia were higher in early trade Tuesday in line with the positive momentum across regional markets, dealers said.
After 10 minutes of trading, the underlying FTSE Bursa Malaysia KLCI climbed 1.39 points to 1,563.91 after opening 1.48 points lower at 1,561.04.
A dealer said most regional markets rebounded today amid optimism that progress was being made on tackling Greece's debt crisis although caution remained ahead of a crucial vote later this week on an austerity plan.
HwangDBS Vickers Research Sdn Bhd said the local bourse was expected to show a gradual upward bias today.
"Given a stable external backdrop, the benchmark index could be making its way towards the immediate resistance level of 1,575 soon," it said in a research note today.
The market saw the debut of MSM Holdings on the Main Market at RM4.45, a premium of 95 sen over the initial offer price of RM3.50 with 4,500 shares exchanging hands at the opening bell.
Meanwhile, the Finance Index was up 18.31 points at 14,685.3, the Plantation Index decreased 1.32 points to 7,827.96 and the Industrial Index slipped 0.12 points to 2,793.82.
The FTSE Bursa Malaysia Emas Index increased 12.521 points to 10,733.82, the Malaysia Mid 70 Index rose 23.65 points at 11,666 and the FTSE Bursa Malaysia Ace Index added 2.24 points to 4,207.54.
Gainers outpaced losers 132 to 42 while 117 counters were unchanged and 1,170 others were untraded.
A total of 60.178 million shares worth RM160.557 million were traded.
Among active stocks, MSM advanced RM1.05 to RM4.55, Focus Dynamics and Naim Indah added half-a-sen each to six sen each respectively while MAA and Tebrau Teguh gained one sen each to 71 sen and 76 sen, respectively.
Heavyweights, Maybank lost one sen to RM8.89, CIMB added three sen to RM8.78, Petronas Chemicals gained two sen to RM7.06 and Tenaga added one sen to RM6.67 while Sime Darby was flat at RM9.20.
Philippine share prices and the peso fell on Monday as fears of the spread of Europe’s debt crisis prompted investors to take profits following last week’s gains.
At the Philippine Stock Exchange, the composite index dipped 2.15 points, or 0.05 percent to 4,289.29, while the broader all-shares index lost 1.82 points, or 0.06 percent to 2,986.
Decliners beat advancers, 70 to 58, while 41 stocks were unchanged. A total of 3.32 billion stocks worth P3.46 billion changed hands.
“Investors weren’t very active today as the local stock market was sluggish to begin a new week. The main index stayed flat for the whole trading session,” said Prince Anthony Yeung of AB Capital Securities Inc.
Asian markets closed lower on Monday amid concerns that the European debt crisis would spread to other countries after a ratings agency said it might slash the credit ratings of Italian banks. Moody’s Investors Service placed the long-term debt and deposit ratings of 16 Italian banks and two Italian government-related financial institutions on review for a possible downgrade, which sent investors dumping emerging assets.
After lifting the main index last week, Philippine mining issues succumbed to profit-taking on Monday, falling 0.93 percent, led by the 2.15 percent drop in Philex Mining Corporation, the country’s largest miner.
“Mining companies did not have a good day today. After gains in every trading day last week, Philex retreated,” Yeung said.
Other mining stocks such as Lepanto Consolidated Mining Co. and Manila Mining Corp. also closed lower. Atlas Consolidated Mining & Development Corp. remained under voluntary suspension. Security Bank Corp. and International Container Terminal Services Inc.
kept the index afloat, rising 2.16 percent and 1.70 percent, respectively. Ayala Land Inc. became the worst performing stock, tumbling 1.42 percent.
Asian currencies, including the peso, dropped across the board Monday after Moody’s warning. At the Philippine Dealing System, the peso shed 18 centavos to close at 43.60 against the US dollar from 43.42 last Friday.
The dollar-peso pair opened at 43.55 and moved to a high of 43.62 and a low of 43.51. Total trading volume eased to $679.787 million from last week’s $838.05 million.
“Price volatility was more or less the same in the afternoon, with the BSP still bidding behind at 43.53 to 43.56 levels,” a trader noted.
He added that demand for the dollar was intact at 43.51 and majority of the market was hesitant to test the Bangko Sentral ng Pilipinas’ buying levels.
“But strong selling interest remained at 43.57-58 levels. But with the rest of Asia seemingly still biddish, offers were taken minutes before the close and the currency pair ended the week at 43.60,” another trader said.
Asian currencies are expected to be on the bid within the week, with the dollar-peso currency pair to trade within a 43.20 to 43.80 on a weekly range.
Singapore shares opened higher on Tuesday, with the benchmark Straits Times Index at 3,054.55 in early trade, up 0.20 percent, or 6.27 points.
Around 63.6 million shares exchanged hands.
The Stock Exchange of Thailand (SET) composite index on Monday lost 12.62 points, or 1.23 per- cent, to close at 1,010.32 points. The market value was 18.29 billion baht, with 2.57 billion shares traded.
The SET100 index ended the session at 1,534.68 points, down 20.82 points, or 1.34 percent, with a total trade value of 14.12 billion baht.
The SET50 index dropped 9.27 points, or 1.30 per cent, to stay at 704.75 points, with a total transaction value of 12.30 billion baht.
The Market for Alternative Investment (mai) index went down 1.90 points, or 0.63 percent, to close at 298.79 points, with a total turnover of 737.62 million baht.
Top five most active values were as follows;
PTT closed at 324.00 baht, down by 10.00 baht, or 2.99 percent.
BANPU closed at 696.00 baht, down by 4.00 baht, or 0.57 percent.
MALEE closed at 17.70 baht, up by 2.60 baht, or 17.22 percent.
KBANK closed at 115.00 baht, up by 1.00 baht, or 0.88 percent.
SCB closed at 104.50 baht, down by 0.50 baht, or 0.48 percent.
The VN-Index ended a three-day losing streak in trading yesterday on the HCM City Stock Exchange, ending the first session of the week at 434.25 points, a gain of 0.2 percent over last Friday's close.
While the volume of trades rose just 16 percent to about 25.5 million shares, the value of the day's trades soared to over VND1 trillion (US$51.5 million), doubling last Friday's value, thanks to the heavy buys by foreign investors of dairy producer Vinamilk (VNM).
Foreign investors yesterday bought 6.4 million shares of VNM worth VND725 billion ($35.2 million), accounting for 70 percent of the total market value. The shares were bought through negotiation at the ceiling price of VND115,000 ($5.60) per share.
This also lifted the value of net buys by foreign investors on the HCM City market yesterday to over VND714 billion ($34.7 million) – the highest level since the beginning of the year.
Over 14 million additional shares – which VNM had previously issued to foreign investors and employees – were officially traded on the HCM City bourse for the first time yesterday, raising the foreign ownership ratio in VNM from 46 percent to 49 percent. VNM closed up 2.7 percent to VND113,000 ($5.50).
Overall, many blue chips declined, including shares of real estate developer Hoang Anh Gia Lai (HAG), steel producer Hoa Phat Group (HPG), Phu My Fertilisers (DPM), Masan Group (MSN) and insurer Bao Viet Holdings (BVH), with losses ranging from 1-3 percent. Decliners edged advancers by 110-103.
Investors still kept a watchful eye for an uptrend following the release of some positive economic data last week, said independent analyst Pham Viet Hung.
"Economic policies used to be unpredictable in Viet Nam, and investors want to wait for clearer signals before making any investment decisions," said Hung.
Inflation in June was reported to rise just 1.09 percent over May, its slowest pace since the beginning of the year, while growth in the trade deficit slowed, with the deficit being forecast to reach $6.65 billion in the first half.
The central bank also said that credit growth in the non-manufacturing sector dropped to 16.9 percent of total outstanding commercial bank loans in June, well within the government's 22-percent cap.
On the Ha Noi Stock Exchange yesterday, the HNX-Index retreated by 0.2 per cent from the previous Friday to close at 75.63 points. Over 24 million shares were traded, worth VND293.6 billion ($14.3 million), while losers outnumbered gainers by 128-102.
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