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ASEAN STOCK WATCH 2 June 2010

Shayne Heffernan
www.livetradingnews.com

ASEAN stock markets retreated on Tuesday as euro zone worries again prompted investors to reduce their investment in shares in companies that have greatest exposure to any economic slowdown.

Wall St started the day well on strong data but Euro worries again dominated trading and the exchange turned lower at lunch, media hype today was again on the EuroZone and decling demand in China, I have serious doubts on both fronts and buying now in ASEAN now at the huge discounts on offer males good sense.

Indonesia fell 2.6 percent, ASEAN’s best market this year, fell from a two week high as the country’s inflation rate hit a one year high in May and exports slowed. Indonesia’s Banks drove the market lower, with Bank Central Asia (BBCA) and Bank Rakyat Indonesia BBRI falling over 4 percent and Bank Mandiri losing 3.7 percent.

Indonesia’s new forestry law, a changing climate and rising mining costs are the challenges coal producers face in their efforts to boost production, a conference heard on Tuesday.

Coal producers from Indonesia, the world’s top thermal coal exporter, said the unpredictability of China’s future import demand was also a risk faced by miners, as many are in the midst of ramping up output in anticipation of China emerging as a major net coal importer.

“The overlapping forestry and energy laws have caused a lot of uncertainty among producers because it means that some mining permits would not be extended, or existing ones could be revoked,” Eko Natalina, general manager of sales and marketing at PT Berau Coal, said at the Coaltrans conference in Bali. Thailand’s Banpu PCL has already closed its Jorong mine in Indonesia since February due to an investigation into land-use permits for a protected forest area.

Indonesia’s Forestry Minister Zulkifli Hasan also said in February that he had revoked the land-use permits for 23 mining and other operations in forested areas and may crack down further.

Climate change, distorting the weather patterns in Indonesia’s coal-rich Kalimantan province, has also become a big headache for producers.

“We used to have dry weather during April and and September … but for the past two years, it was wet for almost the whole year,” said Hendra Santoso, director of junior miner E-Coal.

Edwin Tsang, Chief Marketing Officer at PT Adaro, cited the unpredictability of Chinese demand and rising costs as growing challenges producers face.

“Chinese demand may be looking quite promising right now, but their import floodgates can open and close without much notice and that can distort market prices and affect producers’ expansion plans,” he said. According to coal services company Marston and Marston, the global coal sector is likely to experience cost pressure from higher stripping and transport costs as producers are required to dig deeper and go further inland to access economical reserves.

The Thai market closed down 1.3% after opening higher as foreigners sold again, the market followed weakness in U.S. futures and because foreign investors were selling the market drifted a little, it was in fact a strong day for Thailand stocks and encouraging for the rest of the month.

AirAsia Bhd.the rising star of the Malaysian Exchange and ASEAN’s biggest budget airline, is considering an initial public offering of its unit in Thailand next year amid a surge in leisure travel in the region.

Budget airlines in Asia-Pacific are expanding as travel within the region overtook intra-North America as the world’s biggest aviation market last year. Tiger Airways Holdings Ltd., a discount carrier part-owned by Singapore Airlines Ltd., raised S$233 million ($166 million) in an IPO in January as carriers in Vietnam and Indonesia also consider fund-raising plans.

AirAsia will deploy the funds raised for expansion in the region and is a serious contender to establish the first real budget airport hub, keep a close eye on AirAsia, this story is just starting to take off.

Singapore lost 1.3 percent, top lender DBS Group DBSM.CM fell 2.1 percent and Oversea-Chinese Banking Corp. (OCBC.SI) slid 1.6 percent, while Genting Singapore (GENS.SI) closed 6.6 percent weaker.

Kuala Lumpur traded flat today, transport company MISC Bhd (MISC.KL) fell 1 percent. AirAsia rose 4.3 percent to close at 1.22 ringgit in Kuala Lumpur. The shares have fallen 12 percent so far this year.

The Malaysian airline’s first-quarter profit increased 10 percent to 224.1 million ringgit ($68.7 million) because of rising passenger numbers, according to its filing to the stock exchange today

The Philippine index .PSI closed 0.2 percent weaker after hitting a two-week high during the session. Bucking the trend,

Vietnam .VNI edged up 0.2 percent.

Global Markets By Region

Americas
Price
Change (%)
1 Year %
Last Updated
flag
Toronto Composite
11,762.99
+91.55 (0.78%)
+10.93%
Jun 01, 3:00pm
flag
Mexican Bolsa IPC Index
32,038.53
+490.98 (1.56%)
+27.61%
Jun 01, 3:00pm
flag
Brazil Bovespa Index
62,379.26
+432.26 (0.70%)
+14.49%
Jun 01, 3:00pm
flag
Argentina Merval Index
2,203.60
+35.03 (1.62%)
+33.06%
Jun 01, 3:00pm
flag
Chile IPSA Index
3,886.86
+52.95 (1.38%)
+21.80%
Jun 01, 3:00pm

Asian Pacific
Price
Change (%)
1 Year %
Last Updated
flag
Nikkei 225 Index
9,711.83
-51.15 (-0.52%)
+0.35%
Jun 01, 3:00pm
flag
ASX All Ordinaries
4,436.70
-42.30 (-0.94%)
+14.12%
Jun 01, 3:00pm
flag
Seoul Composite
1,641.25
+18.47 (1.14%)
+15.98%
Jun 01, 3:00pm
flag
Hong Kong Hang Seng
19,496.95
-269.76 (-1.36%)
+3.22%
Jun 01, 3:00pm
flag
Shanghai
2,568.28
-87.49 (-3.29%)
-5.62%
Jun 01, 3:00pm
flag
Taiwan Weighted
7,373.98
+78.66 (1.08%)
+6.04%
Jun 01, 3:00pm
flag
Singapore Straits Times
2,715.44
-24.26 (-0.89%)
+14.09%
Jun 01, 3:00pm
flag
Bombay Sensex Index
16,944.63
+81.57 (0.48%)
+14.18%
Jun 01, 3:00pm
flag
Jakarta Composite
2,796.96
+0.00 (0.00%)
+39.95%
Jun 01, 3:00pm
flag
Kuala Lumpur Composite
1,282.97
+13.81 (1.09%)
+20.83%
Jun 01, 3:00pm
flag
PSE Composite
3,266.62
+13.99 (0.43%)
+32.86%
Jun 01, 3:00pm
flag
Sri Lanka All Share
4,237.16
+0.00 (0.00%)
+91.77%
Jun 01, 3:00pm

Europe
Price
Change (%)
1 Year %
Last Updated
flag
FTSE 100 Index
5,163.30
-25.10 (-0.48%)
+14.58%
Jun 01, 3:00pm
flag
Paris CAC 40
3,503.08
-11.98 (-0.34%)
+3.66%
Jun 01, 3:00pm
flag
Frankfurt Index
5,981.27
+35.09 (0.59%)
+16.31%
Jun 01, 3:00pm
flag
Milan BCI General
15,743.00
+0.00 (0.00%)
+0.00%
Jun 01, 3:00pm
flag
Belgium 20 Index
2,466.00
+5.46 (0.22%)
+17.90%
Jun 01, 3:00pm
flag
Swiss Market Index
6,316.60
-5.30 (-0.08%)
+18.07%
Jun 01, 3:00pm
flag
OSE Norway All Share
>396.54
-4.81 (-1.20%)
+15.57%
Jun 01, 3:00pm
flag
ATX Vienna
2,379.95
-50.32 (-2.07%)
+13.04%
Jun 01, 3:00pm
flag
Amsterdam Total Return General
321.21
+0.57 (0.18%)
+19.67%
Jun 01, 3:00pm
flag
Madrid General
966.64
-6.97 (-0.72%)
-2.99%
Jun 01, 3:00pm
flag
Stockholm General Index
308.52
+0.73 (0.24%)
+23.38%
Jun 01, 3:00pm

Africa/Middle East
Price
Change (%)
1 Year %
Last Updated
flag
Israel TA 100 Index
1,000.46
-8.94 (-0.89%)
+23.82%
Jun 01, 10:45am
flag
TEL-TECH INDEX
262.64
-2.62 (-0.99%)
+32.09%
Jun 01, 10:45am
flag
TEL-TECH-15 INDEX
230.08
-2.30 (-0.99%)
+28.05%
Jun 01, 10:45am

 


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