ASEAN KEY DESTINATIONS
ASEAN Stock Outlook Shayne Heffernan
ASEAN Stock Outlook
The MSCI index of Asian stocks excluding Japan was down 1.3 percent as ASEAN markets traded mixed after a strong USA rally. US futures traded lower for the day however the market rallied after open indicating a strong uptick in ASEAN markets today.
Thai protesters refused to call off a crippling demonstration and the government said it had done all it could to reach a deal, dashing hopes for a swift end to a crisis that has stifled the economy.
Foreign selling helped pull the market lower as political uncertainty lingered.Foreign investors sold a net 900 million baht ($27.89 million) in the morning session, dealers said, adding to their net outflows over the past four sessions of 14.5 billion baht.
Thailand is trading at forward price to earnings of 10.7 times, compared with Singapore’s 13.1, Malaysia’s 13.3, Indonesia’s 13.4, Philippines’ 12 and Vietnam’s 11.8 and represents a strong buying opportunities according to Ebeling Heffernan.
The Manila market welcomed the emergence of Benigno Aquino as a clear leader in vote counting and looked forward to a period of political stability plus efforts to tackle a large budget deficit.
But foreign investors who had bought ahead of the election took profits today. With all of this election news already behind us, now the market will follow developments abroad.
Philippine shares hit a one-week high on Tuesday after the country’s presidential election, while other ASEAN markets ended mostly lower amid questions about a $1 trillion euro-zone debt-crisis package.
Indonesia had surged over 4 percent in the previous session but was brought down by banking shares, with a 4.6 percent fall in top lender Bank Mandiri (BMRI) and one of 2.3 percent in Bank Rakyat Indonesia BBRI.
Singapore fell almost 1% and is expected to be a strong performer for the rest of the week.
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