ASEAN KEY DESTINATIONS
Asean Stock Watch-May 13
The Dow Jones Industrial Average rose 65.89 points, or 0.5 percent on Thursday, to close at 12,695.92
The S&P 500 rose 6.57 points, or 0.5 percent, to close at 1,348.65, while the Nasdaq composite rose 17.98 points, or 0.6 percent, to close at 2,863.04. Crude oil was at US$ 98.57 a barrel.
The Malaysian stock market could see about nine more Main Market listings before year-end, based on ongoing work - preliminary or otherwise - by some investment banks on the initial public offerings (IPO).
Four - Bumi Armada Bhd, MSM Malaysia Holdings Bhd, Eversendai Corp Bhd and UOA Development Bhd - have already put out their draft prospectuses.
The others that are expected to come to the market are Pavillion real estate investment trust (REIT), Axis Global Islamic REIT, Qatar-listed property group Ezdan's Islamic REIT and possibly two utility companies, Jimah Energy Ventures Sdn Bhd and Gas Malaysia Sdn Bhd.
When added to the 13 companies that have already been listed on the Main Market and ACE Market as at May 10, it could bring total new listings this year to about 22.
"Even if a few don't happen for whatever reason - property prices crashing, coal prices surging further or just bad market jitters - you're still looking at a good number this year," an investment banker remarked.
Last year, there were 29 new listings including that of Petronas Chemicals Group Bhd, which had collectively raised a record RM19.7 billion from their initial share sales.
This was a stark recovery from the recession year of 2009, when there were just 14 new listings.
Last year, Petronas Chemicals' IPO alone raised RM12.8 billion and was Southeast Asia's largest ever.
Bad economic news from abroad pulled the Philippine stock market and the peso. At the Philippine Stock Exchange, the composite index fell 23.03 points, or 0.53 percent to 4,312.01, while the broader all-shares index shed 11.10 points, or 0.37 percent to 3,006.76. Decliners beat advancers 73 to 63, while 39 stocks were unchanged. A total of 8.03 billion stocks worth P5.49 billion changed hands.
“Concerns over China’s monetary tightening pulled commodity prices lower, dragging sentiments and sending equity markets in the region tumbling,” said Jun Calaycay of Accord Capital Securities Inc.
The correction came after the main index hovered around its immediate resistance level at 4,340, from which it consolidated for more than a week.
On the domestic front, stocks may get a boost from the possibility of the country’s credit rating upgrade by Moody’s, which may come sooner than initially seen, said Prince Anthony Yeung of AB Capital Securities Inc.
“The general market trend remains positive, although the short-term is challenged by a weakness highlighted by divergent movements of two momentum measures,” said Calaycay. Immediate market range is pegged at 4,270 to 4,250.
The peso also lost momentum Thursday, trading weaker against the dollar. At the Philippine Dealing System, the peso shed 23 centavos to move back to the 43.11 level from Wednesday’s 42.88 finish.
Traders attributed the weak peso to risk aversion after the US’ Energy Information Administration reported demand for gasoline fell by the largest amount in seven weeks, a signal that consumers are keeping money.
Traders said this has led to speculation that the recovery in the world’s biggest economy is not gaining traction.
The currency pair opened at 43.010 and moved to a high of 43.110 and a low of 42.960. Total trading volume eased to $855.55 million from Wednesday’s $946.25 million. The peso-dollar pair is expected to trade at a range of 42.75 to 43.40 with direction mainly influenced by external developments, traders said.
Singapore shares opened higher on Friday, with the benchmark Straits Times Index at 3,140.76 in early trade, up 0.33 percent, or 10.31 points. Around 93.9 million shares exchanged hands.
The Stock Exchange of Thailand main index went down 14.21 points or 1.29 percent to close at 1,086.27 points at the end of trading session on Thursday Afternoon. The trade value was 34.47 billion baht.
The SET50 index ended at 765.27 points, down 12.22 points or 1.57 percent, with a total trade value of 20.88 billion baht.
The SET100 index fell 25.70 points or 1.52 percent to stand at 1,668.28 points, with a total turnover of 27.19 billion baht.
The MAI index went down 1.59 points or 0.54 percent to close at 290.75 points, with total transaction value of 1.09 billion baht.
Top five most active values were as follows;
ESSO (XD) closed at 13.10 baht, up 1.30 baht (11.02 percent)
BANPU closed at 744.00 baht, down 16.00 baht (2.11 percent)
PTT closed at 360.00 baht, down 8.00 baht (2.17 percent)
JAS closed at 2.88 baht, down 0.12 baht (4.00 percent)
CPF closed at 31.75 baht, up 0.25 baht (0.79 percent)
The VN-Index made modest gains yesterday in mixed trading on the HCM City Stock Exchange, while shares on the Ha Noi Stock Exchange continued to plunge.
Despite decliners outnumbering advancers by 138-83 in HCM City, the VN-Index closed up a modest 0.4 percent to 483.15 points. The volume of trades rose 20 percent over Tuesday's session, with 21.6 million shares changing hands, while the value of trades nearly doubled to VND536 billion (US$25.5 million).
Shares of food producer Masan Group (MSN) retained their relatively strong momentum to edge up 3.3 percent to VND127,000 per share, while Vietinbank (CTG) closed up 1.8 percent. However, leading blue chips did not contribute as heavily to the gain of the VN-Index as in previous sessions.
Mid-cap and penny stocks played a heavier role, with 15 mid-caps hitting their ceiling prices, including Thong Nhat Rubber (TNC), which tied with Sacombank (STB) as most-active shares for the day with a volume of 1.1 million shares each.
Au Viet Securities Co chief analyst Ta Thu Tin said that Thong Nhat's recently released first-quarter results helped attract investors to its shares.
On the Ha Noi Stock Exchange, the HNX-Index closed yesterday at 82.71 points, a decline of 0.3 per cent from the previous day, following very sluggish trading. Market value fell 42 per cent from Tuesday's level to just VND243.6 billion ($11.6 million), with the volume of trades totaling just 18.6 million shares.
VNDirect Securities Co (VND) was the most-active share, with 1.2 million traded. Bao Viet Securities Co analysts had predicted a new rally in a recent report in light of the fact that share prices were significantly undervalued.
However, Tin said, there was unlikely to be any change in the market in the short term due to ongoing investor concerns over high inflation and interest rates.
"I do not expect extensive transactions in the next few sessions," he said.
Foreign investors continued as net buyers for a seventh consecutive session on the HCM City bourse yesterday, picking up a net of about VND22 billion ($1 million) worth of shares, but they turned to being net sellers on the nothern bourse by a net of around VND400 million ($19,000)
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