Sign up | Log in



Home  >>  Daily News  >>  ASEAN STOCK WATCH
ASEAN STOCK WATCH Asean Affairs   14  March 2011

Asean markets face uncertain week

Shayne Heffernan

Political protests in the world's leading oil exporter, Saudi Arabia, and the aftermath of the largest earthquake on record in Japan will dominate trading early in the week.

Protests in Saudi Arabia were more muted than what some had anticipated on Friday. Concerns arose that the planned "Day of Rage" protests in the country could lead to further instability in the Middle East and North Africa.

The massive earthquake and deadly tsunami in Japan, a top energy consumer, hit other markets hard on Friday.

It triggered an increase in risk aversion, with nervous Japanese liquidating investments overseas and bringing capital back to yen-denominated assets.

The S&P 500 is trading below its 50-day moving average and is within reach of significant support at 1,275, a low touched in late January. If it goes to 1290 it is time to buy large positions.

For the week, the Dow Jones industrial average fell 1 percent, the S&P 500 slid 1.3 percent and Nasdaq lost 2.5 percent. Besides a break below the 50-day moving average earlier this week, the S&P 500 fell below a long-standing trendline, suggesting the benchmark index has lost momentum and that the recent rally may be losing steam. I however think that this is a healthy pause to refresh and the markets will push forward.

These big dips are an excellent oppotuntiy to build your dividend portfolio, investors should be looking to add positions in Seadrill Limited (NYSE:SDRL), Chimera Investment (NYSE:CIM), American Capital Agency (NASDAQ:AGNC), Teekay Tankers (NYSE:TNK), Partner Communications (NASDAQ:PTNR) , Vector Group (NYSE:VGR), Alaska Communications Systems Group (NASDAQ:ALSK), Grupo Aeroportuario (NYSE:ASR) , Pennantpark Investment Corp (NASDAQ:PNNT) and Navios Maritime Partners L.P. (NYSE:NMM).

The uncertainty of events will make investors increasingly cautious this week. The recent falls on Wall St. sparked a new media fear that a correction is near, however, stocks recovered on Friday from early losses to finish the day higher with the Dow back above 12,000 and the S&P 500 back above 1,300. This gives me confidence in buying on any large dip we see that is event triggered.

The strong bull run remains intact from the start of September, with the S&P 500 still up 24 percent for that period, but has faltered in the last two weeks. At Friday's close, the Standard & Poor's 500 Index was down 1.3 percent for the week.

The jump in crude oil prices to 2 1/2-year highs has raised anxiety about their dampening effect on the economy.

Given those concerns, investors will be tuned into any comments on energy from the Federal Reserve when it releases a statement following its policy meeting next Tuesday.

European Central Bank President Jean-Claude Trichet warned last week about inflation risks, and surprised investors by saying the bank may raise interest rates as soon as next month.

The US central bank is unlikely to hint at policy changes next week, and is expected to keep interest rates near zero.

Next week also brings readings on inflation in the US Producer Price Index and the US Consumer Price Index, as well as data on industrial production.

HCM has said “Low rates will prevail in 2011 and in looking for an alternative”, he added “we expect to see a shift to more funds, managers and institutions buying dividend stocks in 2011.”

Dividend stocks will have their best year in decades this year so try to get in early.

What we are looking for here are 10 companies with a long history of dividend payments, a strong outlook and a low PE ratio, By using this criteria you can minimise your downside.


Comment on this Article. Send them to
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below 





1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    12  March 2011 Subsribe Now !
 • Indonesia projects 42 percent foreign investment increase
Subcribe: Asean Affairs Global Magazine
 • Indonesia says Doha talks stalled Asean Affairs Premium
• Lao border zones clear path for investors

• Lynas must meet Malaysian standards

Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Multisource buying keys Singapore food buying

• Red shirts rally on protest anniversary

• Thai rice farmers want guarantees

• $540m ADB loan for Vietnam rapid transit
Asean Analysis    13   March 2011 Advertise Your Brand
• WEEKLY SUMMARY Sponsor Our Events
Asean Stock Watch    14  March 2011
• Asean markets face uncertain week
Global News Impacting Asia    17 November 2010
• Bank of America sees Asian inflation
• Lloyd’s increases insurance push in Malaysia
• Wells Fargo analyst on euro
• Obama’s visit to Asia

ASEAN NEWS UPDATES      Updated: 04 January 2011

• Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand