ASEAN KEY DESTINATIONS
Thailand SET touched a 21-month high as Government tax breaks lifted property shares. Markets in the ASEAN were mostly higher as we suggested they would be but look out for some consolidation in the ASEAN market tomorrow. Falls in the USA despite good economic data and a Fed statement suggesting continued stimulus will be short lived and the general trend of the market is to keep moving higher.
Thai Stocks rose 0.5 percent led by property firms gained after the extended tax breaks that help homebuyers, which should flow on to property developers’ revenue.
Philippines PSI soared to a two-year high. But Singapore lost 0.7 percent as investors took
Vietnam added 1.1 percent as investors returned and speculation in mid- and small-cap companies increased after recent falls.
Indonesian stocks climbed as strong bank results were better than expected and some buying in the sector spilled over to the general market. Jakarta rose 1.98 percent also led by bank shares Bank Mandiri up 4.9 percent after it reported a better than expected 35.6 percent jump in full-year net profit.
Singapore Exchange, Asia’s second-largest listed bourse, closed down
0.5 percent led by Commodities firm Noble Group 3.6 percent fall after
the vice-chairman sold almost a third of his stake ahead
In Kuala Lumpur, the index closed up 0.35 percent led by financial CIMB Group up 1.9 percent and Malayan Bank was up 0.5 ercent.
US stocks slipped overnight after Portugal’s credit rating was cut on deficit concerns, prompting a sell-off after the recent rally.
The three major US stock indices slightly added to the session’s losses after a weak auction of five-year US Treasury notes.
The Portugal credit rating downgrade added to worries about overseas debt, with Greece’s debt problems dominating the spotlight since early January.
Chevron Corp helped pull the Dow lower, falling 1.2 per cent to $US73.88 after the price of oil fell 1.6 per cent to $US80.53 a barrel. Concerns about Portugal’s credit downgrade pushed the dollar up against the euro, hurting the prices of dollar-denominated commodities like oil. An increase in U.S. crude stockpiles in the latest week also hit oil prices.
“I think people are looking for a reason to take some profits, given the overbought nature, and the much stronger dollar over the Greece concerns and Portugal’s debt being downgraded is providing that reason today,” said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles.
The Dow Jones industrial average was down 44.74 points, or 0.41 per cent, at 10,844.16. The Standard & Poor’s 500 Index was down 5.65 points, or 0.48 per cent, at 1168.52. The Nasdaq Composite Index was down 13.90 points, or 0.58 per cent, at 2401.34.
Before the weak Treasury note auction, the Dow and the S&P 500 were each down about 0.2 per cent, while the Nasdaq was down about 0.4 per cent.
The session’s declines follow the market’s push to 18-month highs on Tuesday, with the Dow racking up a 10th day of gains out of the past 11 sessions.
For the month so far, the S&P 500 is up 6 per cent.
Helping to limit the Dow’s losses, though, Boeing Co rose 0.7 per cent to $US72.65 after a brokerage raised its rating on the stock to “outperform” from “neutral” on prospects for improved revenue.
One of the biggest drags on the Nasdaq was Genzyme Corp, down 6.4 per cent at $US55.33, after the company said the US Food and Drug Administration will take enforcement action at one of its plants. Genzyme makes drugs to treat rare and chronic diseases.
Google also weighed on Nasdaq, falling 0.4 per cent to $US547.00, two days after shutting its Chinese portal over censorship.
The session’s data sent mixed signals about the economy, with new home sales unexpectedly falling to a record low in February. In contrast, new orders for durable goods, which include long-lasting manufactured products such as washing machines, rose for the third straight month in February. Inventories of durable goods posted their biggest gain since December 2008.
Bank of America Corp ranked among the Dow’s major advancers, rising 2.5 per cent to $US17.55 after it said it plans to offer about $US3 billion in loan forgiveness to about 45,000 troubled homeowners. The move is an effort to prevent foreclosures when home values drop sharply below the amount owed.
Global Market Indexes
Comment on this Article. Send them to firstname.lastname@example.org