ASEAN KEY DESTINATIONS
ASEAN Markets Keep Growing Shayne Heffernan
ASEAN Markets Keep Growing
ASEAN markets rallied well after news of a new extended plan put together by the European Union and the International Monetary Fund to prevent a sovereign debt crisis from spreading. After solid overnight gains on Wall St, ASEAN markets are set to post another strong day.
Indonesian Equities rallied over 4 percent on Monday after a very strong first-quarter GDP, and other ASEAN markets gained as worries about europe debt eased after a European Union package to address the crisis.
The Indonesian economy, ASEANs biggest, grew 5.7 percent in the first quarter from a year before, the fastest annual pace in more than a year.
Indonesia’s composite index, best performer in ASEAN this year, racked up a loss of 7.8 percent last week after the sudden departure of Finance Minister Sri Mulyani Indrawati raised concern about the country’s reforms and as Greece’s woes rattled the region. Strong buying interest was seen in stocks dependent on the domestic economy, with Bank Central Asia (BBCA) and Astra International (ASII) rising almost 5 percent.
Bangkok followed U.S. stock index futures, which rose 3.8 percent at 0930 GMT. Local investors returned to the market as positive sentiment in major markets returned.
Foreign investors have sold 12.4 billion baht ($384million) over the past three trading days as the market became less hopeful of an end to political protests in Bangkok that have plagued the economy for 2 months.
Banks lead gains, with Siam Commercial Bank SCB up 2.7 percent and Bangkok Bank BBL 3 percent.
Singapore rose 2.1% led by banking shares that recovered from recent lows. United Overseas Bank 3.7 percent surge to S$19.42, DBS posted a smaller gain of 1.95 percent to S$14.64. Last week, UOB reported a 71 percent rise in quarterly net profit, outperforming its peers.
Malaysia was up a modest .08%, Tenaga Nasional (TENA) rose 1.4 percent and financial CIMB Group (CIMB) was up 0.7 percent.
In Manila, the stock market shut as the country was voting to elect a president.
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