ASEAN KEY DESTINATIONS
Most Southeast ASEAN markets managed to rally on Thursday, investors were buying banks with the expectation their earnings will recover with the economy. They are set to open lower today as a USA rally lost steam in the afternoon to close the day flat.
Markets drifted in afternoon trading from the day’s highs.
Singapore closed up 0.07 percent, United Overseas Bank was up 0.2 percent
In Kuala Lumpur, the exchange added 0.23 percent led by financial firm CIMB Group up 1.6 percent and AMMB Holding gaining 0.6 percent.
In Bangkok, The SET ended down 0.3 percent but banks had a strong day Kasikornbank KBAN.BK rose 1.3 percent and Krung Thai Bank KTB.BK was up 0.9 percent.Sevaral Analysts including Citigroup, Ebeling Heffernan and CIMB Securities (Thailand) have upgraded Thai banks due to the positive earnings outlook in the sector.
“Thai Banks will see growing revenue as the economy continues to improve” said Shayne Heffernan of Ebeling Heffernan.
Indonesia closed strongly up 0.88 percent higher the highest in 26 months again led by banks, Bank Danamon up 3.8 percent, Bank Negara Indonesia up 4.7 percent and Bank Rakyat Indonesia up 1.2 percent. Coal miner Bumi Resources fell 2.2 percent making it a stang out buy according the Shayne Heffernan and Adaro Energy was down 1.06 percent.
Philippines PSI finished up 0.14 percent. The market hovered around two-year highs. Best performers were Manila Electric up 2.8 percent and Ayala Land climbed 4.1 percent, building on the previous session’s gains as the economic recovery bolstered its earnings outlook.
Vietnam dropped 1.7 percent to its lowest in three weeks. Banks led
losers in Vietnam, with Vietcombank
US stocks rose sharply then closed flat overnight, driving the Dow and S&P 500 to new 18-month highs intraday but falling in the afternoon as Qualcomm and Best Buy boosted their profit outlooks and financials surged for a second day.
Citigroup Inc gained 3.6 per cent to $US4.30 after Bloomberg News reported that the US Treasury could unveil a plan next month for the sale of its stake in the bank.
Wireless chip maker Qualcomm Inc led the Nasdaq, surging 5.2 per cent to $US42.27 after raising its second-quarter earnings outlook.
Electronics retailer Best Buy Co forecast stronger-than-expected earnings for the current year and reported quarterly results that were above estimates, pushing its shares up 4.7 per cent to $US43.10.
“Today is all about earnings, and the comments from Qualcomm and Best Buy have been very positive,” said James Meyer, chief investment officer at Tower Bridge Advisers in West Conshohocken, Pennsylvania.
“The economic backdrop for the upcoming earnings season looks very good, particularly in the tech sector.”
First-quarter S&P 500 earnings reports, due in the coming weeks, are forecast to show year-over-year gains of 36.6 percent, according to estimates compiled by Thomson Reuters.
Also lifting the Nasdaq was Oracle Corp, up 1.2 per cent at $US26.07 ahead of its results, which are scheduled to come out after Thursday’s closing bell.
Other financial shares on the rise included Bank of America, up 2.6 per cent at $US18.03. It was the second day of strong gains for the bank, which on Wednesday said it plans to offer about $US3 billion in loan forgiveness to about 45,000 troubled home buyers.
The S&P financial index was up 1.3 per cent on the day and is up about 11 per cent for the month so far.
Adding to the positive tone, data showed the number of US workers filing new applications for unemployment insurance fell sharply last week.
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