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ASEAN STOCK WATCH 9 June 2010

ASEAN Markets Show Strength

Shayne Heffernan
www.livetradingnews.com

ASEAN Markets continue to feel the pressure as the world markets dive, however on balance the ASEAN Exchanges have held up very well.

Over night Wall St was up and down repeatedly but it does seem to be looking to rally. If they do ASEAN markets will surge.

If you do trade the USAS do not forget Hurricane Season is here now, this year’s outlook for an Atlantic storm season with as many as 23 named storms compares with a total of nine last year. A record 28 named storms formed in 2005, including Katrina.

Researchers at the Colorado State University boosted their forecast for the 2010 season last week, predicting 18 named storms, 10 of them becoming hurricanes.

“While this year’s hurricane season could be a test to the market, it won’t be the first one,” said Michael Halsband, who helps develop and market cat bonds at Goldman Sachs Group Inc. “Cat bonds already passed the test of the 2005 record hurricane season as well as the test from the credit market side with the collapse of the broader credit markets and failure of Lehman.”

ASEAN

The Jakarta Index rebounded after Monday’s speedy 2.6 percent decline as foreign investors returned buying $4 million in shares on Tuesday after net selling of $7.8 million the day before.

PT Bakrie Telecom rose 3.1 percent to Rp 167, its highest since October 2008. The rise follows reports that BTel is in talks to merge with a unit of PT Telekomunikasi Indonesia (Telkom), the country’s largest phone company.

The Jakarta Composite Index rose 29.75 points, or 1.1 percent, to 2,779.98. Some 5.4 billion shares worth Rp 2.8 trillion ($302 million) were traded.

Gainers outnumbered decliners 140 to 45.

PT Bumi Resources reported 22% drop in Q1 net profit to USD 96.81 million as lower coal prices and a higher tax bill offset increased output.

Mr Ari Pitoyo from PT Mandiri Sekuritas said that compared to other coal counters, it can be seen that they experienced higher production volumes but seemed to incur higher costs resulting in lower operating income versus peers.

Bumi said that it expected to beat its previous forecasts for profit and revenue to rise more than 10% in 2010, as coal production was on track to meet the target of 67 million tonnes with an average price of USD 67 per tonne.

Mr Dileep Srivastava investor relations director of Bumi said that we may do better than our previous expectation to increase our profit and revenue above 10%. Demand is increasing from China and India while we can sell at a premium price to Japan.

Mr Dileep said that Bumi would have posted 38% rise in profit if last year’s net income had been adjusted as well. A one time gain this year of USD 93.74 million from the sale of investments had added to the company’s Q1 profit. Bumi also paid USD 87.3 million in taxes up from USD 29.3 million a year ago.

The miner, controlled by tycoon and politician Aburizal Bakrie and its main subsidiaries allegedly owe more than USD 200 million in taxes but have denied the allegations.

Bumi sold 41.6% more coal in the Q1 but its average coal selling price fell nearly 16% in the period to USD 62.90 per tonne. Net profit for the 3 months ended on March 31 dropped from USD 124.54 million in the year earlier period. Revenue rose 22% from a year earlier to USD 1.02 billion from USD 832.7 million a year ago.

Mr Yusuf Ade Winoto an analyst at PT Batavia Prosperindo Sekuritas said that the profit drop isn’t surprising as the adjustments have been made since the Q4. Going forward, we expect earnings to improve on higher coal prices.

The Directorate General of Taxation said that it would continue its investigation of Bumi in what was seen as a litmus test of the government’s commitment to reform. Bumi which has a stock market value of about USD 4 billion competes with PT Adaro Energy and PT Berau Coal in producing coal in Indonesia.

The rupiah strengthened amid speculation that the central bank intervened to stem losses after the currency dropped the most in two weeks on Monday.

It also gained on reports that Japan’s current-account surplus had increased and German factory orders rose for a second month, easing concern demand for Asian goods will slow amid the European debt crisis.

Singapore share prices ended mixed on Tuesday, as investors remained concerned over the debt crisis in Europe and its impact on the global economic recovery.

The blue-chip Straits Times Index was in positive territory for most of the day but a surge of last-minute selling resulted in it losing 5.27 points to close at 2,746.61 points.

In the broader market, gainers outnumbered losers 223 to 168. Overall volume traded was 943.8 million shares worth S$1.08b.

Traders and analysts said the equities market is unlikely to experience stability in the near term given continued worries about the debt-crisis in the Europe and the pace of global economic recovery.

Among the gainers, Olam International rose 1.2% to S$2.47 after it announced a US$250 million acquisition of US-based Gilroy Foods & Flavors’ dried and fresh vegetable products business.

Bargain hunting was seen in selected stocks such as Neptune Orient Lines, which rose 1.6% to S$1.90, and SIA Engineering, which closed 0.5% higher at S$3.82.

Among the losers, Wilmar International fell 0.5% to S$5.63 after CIMB cut its target price to S$6.50 from S$7.85 and downgraded the stock to Neutral from Outperform, citing limited earnings growth.

Sembcorp Industries fell 0.7% to S$3.96 after Daiwa cut its target price to S$4.58 from S$4.80. The fall flowed to Sembcorp Industries unit Sembcorp Marine, which dropped 0.5% to S$3.66.

In Bangkok, miller Khon Kaen Sugar Industry KSL.BK was down 0.9 percent, at one point hitting its lowest since June 1, after the company forecast net profit would fall this year because of higher costs.

TMB Bank TMB.BK ended 2.3 percent up after hitting two-week highs after it said it was talking only with Dutch partner ING (ING.AS), not with other potential buyers, on a stake in it that the Thai Finance Ministry wants to sell. Foreign investors sold Thai shares worth a net 705 million baht ($21.60 million) on the day, exchange data showed.

Global Markets By Region

Americas
Price
Change (%)
1 Year %
Last Updated
flag
Toronto Composite
11,504.74
-64.87 (-0.56%)
+9.06%
Jun 08, 3:00pm
flag
Mexican Bolsa IPC Index
30,739.01
-253.64 (-0.82%)
+23.29%
Jun 08, 3:00pm
flag
Brazil Bovespa Index
61,428.25
+245.25 (0.40%)
+14.54%
Jun 08, 3:00pm
flag
Argentina Merval Index
2,168.99
-12.22 (-0.56%)
+33.45%
Jun 08, 3:00pm
flag
Chile IPSA Index
3,860.66
-3.48 (-0.09%)
+20.64%
Jun 08, 3:00pm

Asian Pacific
Price
Change (%)
1 Year %
Last Updated
flag
Nikkei 225 Index
9,537.94
+17.14 (0.18%)
-3.32%
Jun 08, 3:00pm
flag
ASX All Ordinaries
4,401.20
+50.50 (1.16%)
+10.89%
Jun 08, 3:00pm
flag
Seoul Composite
1,637.97
-26.16 (-1.57%)
+17.56%
Jun 08, 3:00pm
flag
Hong Kong Hang Seng
19,487.48
+109.33 (0.56%)
+6.76%
Jun 08, 3:00pm
flag
Shanghai
2,513.95
+2.22 (0.09%)
-9.19%
Jun 08, 3:00pm
flag
Taiwan Weighted
7,157.83
-186.76 (-2.54%)
+7.99%
Jun 08, 3:00pm
flag
Singapore Straits Times
2,746.61
-5.27 (-0.19%)
+17.69%
Jun 08, 3:00pm
flag
Bombay Sensex Index
16,781.07
-336.62 (-1.97%)
+14.42%
Jun 08, 3:00pm
flag
Jakarta Composite
2,750.23
-73.02 (-2.59%)
+33.72%
Jun 08, 3:00pm
flag
Kuala Lumpur Composite
1,288.18
+1.91 (0.15%)
+20.07%
Jun 08, 3:00pm
flag
PSE Composite
3,274.26
+8.15 (0.25%)
+30.05%
Jun 08, 3:00pm
flag
Sri Lanka All Share
4,431.32
+77.12 (1.77%)
+101.38%
Jun 08, 3:00pm

Europe
Price
Change (%)
1 Year %
Last Updated
flag
FTSE 100 Index
5,028.15
-40.95 (-0.81%)
+14.14%
Jun 08, 3:00pm
flag
Paris CAC 40
3,380.36
-33.36 (-0.98%)
+2.76%
Jun 08, 3:00pm
flag
Frankfurt Index
5,868.55
-36.40 (-0.62%)
+17.26%
Jun 08, 3:00pm
flag
Milan BCI General
15,743.00
+0.00 (0.00%)
+0.00%
Jun 08, 3:00pm
flag
Belgium 20 Index
2,390.89
-21.16 (-0.88%)
+16.85%
Jun 08, 3:00pm
flag
Swiss Market Index
6,246.22
-44.78 (-0.71%)
+15.85%
Jun 08, 3:00pm
flag
OSE Norway All Share
392.98
-4.42 (-1.11%)
+14.25%
Jun 08, 3:00pm
flag
ATX Vienna
2,216.84
-18.37 (-0.82%)
+4.69%
Jun 08, 3:00pm
flag
Amsterdam Total Return General
314.83
-2.71 (-0.85%)
+19.99%
Jun 08, 3:00pm
flag
Madrid General
907.79
-12.87 (-1.40%)
-6.71%
Jun 08, 3:00pm
flag
Stockholm General Index
304.64
-1.96 (-0.64%)
+26.64%
Jun 08, 3:00pm

Africa/Middle East
Price
Change (%)
1 Year %
Last Updated
flag
Israel TA 100 Index
1,002.97
-5.01 (-0.50%)
+23.17%
Jun 08, 10:45am
flag
TEL-TECH INDEX
259.69
-5.10 (-1.93%)
+27.46%
Jun 08, 10:45am
flag
TEL-TECH-15 INDEX
224.31
-5.89 (-2.56%)
+21.87%
Jun 08, 10:45am

 


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