ASEAN KEY DESTINATIONS
Singapore shares rose for a fourth straight session and were headed for their first weekly gains after five weeks of decline, as easing fears of an early exit of U.S. monetary stimulus soothed investors' nerves and sent global equity market higher.
The benchmark Straits Times Index rose nearly 1 percent to 3,148.32 points, but was headed for its biggest monthly loss in more than a year with a nearly 5 percent decline in June. MSCI's broadest index of Asia-Pacific shares outside Japan was up 1 percent.
Global Logistic Properties Ltd and HongKong Land Holdings Ltd were among the top index performers.
Olam International Ltd lagged behind the index with a 1.2 percent decline to S$1.635. Shares of the commodity firm were headed for a 6.6 percent fall in June, the sharpest monthly decline since November.
Citi analysts said the stock was trading at comparable valuations to the lows observed during the global financial crisis, and remained positive on the its performance outlook.
"We reiterate our buy rating on Olam as we expect eventual ROE (return on equity) expansion as its gestating assets go into maturity," they wrote in a research note.
"Near-term catalysts would come from positive reaffirmation of Olam's assets via sale/lease-back and JV deals."
Daily Market Commentary (Securities)
28 June 2013
The FBM KLCI index gained 21.97 points or 1.25% on Friday. The Finance Index increased 1.32% to 16884.92 points, the Properties Index up 0.73% to 1374.54 points and the Plantation Index rose 0.74% to 8363.46 points. The market traded within a range of 19.08 points between an intra-day high of 1773.54 and a low of 1754.46 during the session.
Actively traded stocks include LUSTER, CLIQ-WA, MAS, INGENCO, ASUPREM-WB, MPHBCAP, CSL, THHEAVY-WA, THHEAVY and AXIATA. Trading volume increased to 1490.00 mil shares worth RM2730.00 mil as compared to Thursday’s 1321.70 mil shares worth RM2193.91 mil.
Leading Movers were PETGAS (+60 sen to RM20.90), KLK (+54 sen to RM21.72), UMW (+32 sen to RM14.60), HLBANK (+28 sen to RM13.90) and PPB (+26 sen to RM14.16). Lagging Mover was TM (-1 sen to RM5.40). Market breadth was positive with 508 gainers as compared to 253 losers.
The KLCI soared and closed at 1773.54 points in the last trading day of June. The positive momentum of our local bourse was supported by the gains in the U.S. and regional peers’ markets. Global market sentiment was lifted by a string of upbeat economic data from the U.S. and following several speeches from Federal Reserve policymakers suggesting the central bank has time before it starts reducing its bond-buying.
CORRECTED-Indonesia c.bank sees annual inflation at 5.9 pct in June, 7.5 pct in July
(Corrects June projection to 5.9 pct in headline, 1st paragraph instead of 5.7 pct)
Indonesia's central bank estimates that the annual inflation in June was 5.9 percent, increased by a fuel price hike that took effect June 22, an official said on Friday.
In July, the rate will reach as high as 7.5 percent as food prices will go up on rising demand during the Muslim fasting month, the head of monetary policy group at Bank Indonesia, Juda Agung, told reporters.
In May, the annual rate of inflation was 5.47 percent.
The central bank also estimated that the inflation rate would start easing in August to 7 percent and get back to "normal" at around 4.4 percent next year, he said.
Bank Indonesia earlier estimated that 2013 inflation would peak at 7.2 percent. The bank on June 13 lifted its benchmark policy rate by 25 basis points to 6 percent.
The statistics bureau is scheduled to announce June inflation data on July 1.
Date As of: 28 June 2013
Description Volume Value Frequency
ETF 16,500 8,880,500 15
Stock 5,071,076,541 7,879,656,456,137 180,498
Warrant 153,458,096 14,701,768,390 2,950
Total 5,224,551,137 7,894,367,105,027 183,463
THAILAND-Kasikornbank up 3.5 pct on hopes of strong Q2 profit
Shares in Kasikornbank Pcl rose as much as 3.5 percent on expectation of a healthy net profit in the second quarter.
Shares in Kasikornbank rose 2.96 percent to 191.50 baht, while the broader SET index gained 1.09 percent.
Banking stocks will make a come back with a positive sentiment over the short term, after foreigners bought shares worth up to 5.5 billion baht on Thursday, Maybank Kim Eng Securities said in a report.
The research house also said 2013 net profit for the firm was expected to grow 16.2 percent from last year to 40.9 billion baht ($1.31 billion).
Maybank, which has a "buy" rating on Kasikornbank, expects the share price to rebound. Kasikornbank will hold analysts' meeting to preview the business profit for the second quarter of 2013 on Friday.
As of 28 Jun 2013 Unit: M.Baht
Type Buy Sell Net
Institution 4,467.98 7,540.13 -3,072.15
Proprietary 6,746.96 7,246.36 -499.40
Foreign 19,073.67 13,866.84 5,206.82
Individual 28,627.12 30,262.39 -1,635.27
Total Trading Value 58,915.73 M.Baht
Vietnam's VN Index closed down 0.38 percent on Friday, bucking the trend of Southeast Asian markets as some investors took profits from beaten-down shares while others stayed on the sidelines, traders said.
The central bank's devaluation of the dong currency and lowering of the rate ceiling on dong and dollar deposits on Friday had little impact on the market as liquidity was low and traders were cautious after a period of volatility.
Big-cap firms fell after earlier gains. Coffee company Vinacafe Bien Hoa lost 7 percent, the bourse's biggest firm by capitalisation PetroVietnam Gas <GAS.HM> was down 1.7 percent and PV Drilling, another PetroVietnam unit, dropped 1.67 percent.
Here is a snapshot of the VN Index at the close (0716 GMT).
VN Index 481.13
PREV. CLOSE 482.95
% CHANGE -0.38%
Change (%) 1-mnth -5.749
Change (%) 3-mnth -1.692
Change (%) 1-year 15.527
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