ASEAN KEY DESTINATIONS
As suggested by ebeling Heffernan yesterday most ASEAN markets rose on Tuesday, pushed forward by strength on Wall Street and a surge of investment fund inflows. After a strong showing in the USA and Europe overnight we would expect today to see a consolidation of that rally in ASEAN.
STI rose 0.6 percent, Malaysia KLSE gained 0.9 percent to touch its
highest since March 18,
In Singapore, United Overseas Bank (UOBH) rose 1.14 percent as investors took encouragement from signs of a strengthening global economy and an uptick in financial services in the region. Shayne Heffernan said today “Asia’s financial institutions have a key role to play in the global recovery, many of them are trading way below their true value”
Malaysia snapped three straight falls ahead of an “Invest Malaysia” conference next week, during which Prime Minister Najib Razak will release a new economic model to boost growth and win back foreign investors to Malaysia.
In Bangkok, energy shares pushed the market up with PTT, the one of the worlds biggest energy firms, rising 2.8 percent, PTT Exploration and Production gainrd 1.7 percent, and PTT Aromatics and Refining surged 7.1 percent. “Thai stocks have been undervalued for a long time, I expect to see the SET break 1000 this year” said Shayne Heffernan.
Foreign investors bought a net 1.88 billion baht ($58.17million) of Thai shares on Tuesday, raising their net purchaseto about 42.16 billion baht ($1.3 billion) since Feb. 22,exchange data showed.
The Thai stock market is still benefiting from low valuations, trading at 11.4 times estimated 2011 earnings, one of the cheapest in Asia, luring foreign funds.
In Jakarta, top lender Bank Mandari, which on Monday posted a
better-than-expected net profit of 35.6
In Manila, shares of Philippine conglomerate JG Summit Holdings Inc
surged more than 15 percent to two-year
The Vietnam index lost 1 percent to touch its lowest since March 3, below the psychological mark of 510 points, led by a 2.3 percent drop in property developer HAGL and a 1.2 percent drop in in Vinamilk.
US stocks advanced overnight on gains in the industrial and technology sectors and after US existing homes sales fell less than expected in February.
Caterpillar Inc added 3.5 per cent to $US62.05 and was the top boost to the Dow after Wells Fargo raised its 12- to 18-month price target to a range of $US73 to $US75 from $US63 to $US65. The firm said several catalysts would support expectations for longer-term growth.
Existing home sales fell to an annual rate of 5.02 million units in February, the National Association of Realtors said. The decline was less than forecast, but highlighted the fragility of a housing recovery.
“Its incremental good news that it was better than expected, but given the huge overhang of inventory, it’s clear that housing will remain a troubled sector for a while,” said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.
The Dow Jones US home construction index fell 0.5 per cent, while builder KB Home dropped 3.3 per cent to $US16.87 after posted a wider-than-expected quarterly loss.
The Dow Jones industrial average jumped 50.87 points, or 0.47 per cent, at 10,837.06. The Standard & Poor’s 500 Index was up 2.88 points, or 0.25 per cent, at 1168.69. The Nasdaq Composite Index rose 7.38 points, or 0.31 per cent, at 2402.69.
If the Nasdaq ends above the 2400 mark, it will be its first close above that level since late August 2008.
Strength in the Nasdaq came from semiconductor stocks, with the Philadelphia semiconductor index up 1.6 per cent. Intel Corp gained 1.4 per cent to $US22.54, a day after Integrated Silicon Solution Inc raised its second-quarter revenue and earnings outlook. Integrated Silicon shot up 15 per cent to $US8.61.
“Upward momentum has returned to the markets, so investors are gravitating to the sectors that have been working and should continue to work,” Ablin said.
Healthcare stocks lagged, giving back some gains from Monday. US President Barack Obama signed into law the landmark healthcare reform bill on Tuesday.
The Morgan Stanley Healthcare Payor index dropped 0.6 per cent, and Cigna Corp fell 1.1 per cent to $US36.86.
US-listed shares of Baidu Inc jumped 3.5 per cent to $US599.57 after rival Google Inc shut down its mainland China portal and began rerouting searches to its Hong Kong operation. Google shares sank 2.4 per cent to $US544.50.
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