ASEAN KEY DESTINATIONS
ASEAN Markets to Retreat Shayne Heffernan
ASEAN Markets to Retreat
ASEAN stocks were at new highs yesterday after new steps by Portugal and Spain raised hopes that Europe’s debt crisis can be contained. However afte a shakey night on Wall St Asean markets will give back some of those gains at open today.
Investors will continue to shun the Thailand Stock Exchange listed equities despite their cheap valuation, which is one of the greatest buying opportunities in history. After the deaths and instability seen in the last 2 days the Thai stocks are set to trade under their one week low at open today. ASEAN’s second-worst performer trades at just 10.6 times forward price to earnings, by far the cheapest in this dynamic region.
Investors exited blue chips late in the session while foreign investors cashed out a net 1.5 billion baht ($46.50 million) in the morning session, dealers said, adding to a 18.9 billion baht net outflows in the past six sessions.
Thai stocks traded at their lowest in nearly one week on Thursday after Abhisit commenced tougher action to end anti-government protests.
Shares in Kuala Lumpur were higher before the release of first-quarter GDP growth which expanded by 10.1 percent in the quarter from a year ago, its fastest pace in 10 years, signalling that recovery is firmly on track for the trade-dependent Southeast Asian country.
Berjaya Corp (BGRO) jumped 7.8 percent after company said it will buy from its major shareholder a 70 percent stake in a sports betting operator.
Maybank (MBBM) shares were up 1.6 percent before it announced, after the market closed, a better-than-expected third-quarter net profit.
Indonesia, ASEAN’s best performing bourse which had gained 12.36 percent so far this year, was shut on the market holiday.
The Philippines rose 1.8 percent, extending its gain for a third day after the country’s presidential election. Despite the climb, it had a foreign net outflow of $14.5 million for the session.
Singapore lost 0.43 percent after earlier small gain, losses were led by a 1 percent drop in Singapore Telecommunications (STEL) after ASEAN’s biggest telco warned of lower earnings from Singapore and India in the coming year having beat expectations with a 6.6 percent rise in quarterly profit.
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