ASEAN KEY DESTINATIONS
Trading volumes were thin in all of the six ASEAN markets and well below the 90-day average. Investors have many concerns now and caution dominates. Poorly managed European debt crisis and the USA about to pass yet more legislation on banks and financial institutions even though they are not capable of enforcing the current regulations, all have investors skittish.
Stocks tumbled after the strengthening of financial regulation from Wall Street to Frankfurt crushed bank shares, adding to worries about the sustainability of the global economic recovery.
The Dow Jones industrial average .DJI was down 114.88 points, or 1.08 percent, to end unofficially at 10,510.95. The Standard & Poor’s 500 Index .SPX was down 16.16 points, or 1.42 percent, to finish unofficially at 1,120.78. The Nasdaq Composite Index .IXIC was down 36.97 points, or 1.57 percent, to close unofficially at 2,317.26.
An sharp reversal on the Dow in Overnight trading will bring huge pressure to markets across the ASEAN region today and there will be bargains to be had in all major markets. Banpu in Thailand and Bumi in Indonesia stand out as good buys, the coal sector is still growing and both these companies will become large players in the international coal markets.
Thailand rallied in the afternoon when some media outlets had reported there were peace talks underway, this was not true and given the continued stalemate that has claimed many lives combined with last nights trading in the USA we are looking for a fall today in Thailand. I am still of the opinion that quality Thai Corporations are great value now, I am focused on exporters for now as it is yet to be seen how much damage will be done to the Thailand economy by the current disaster in the nation.
Thai stocks, which fell more than 0.6 percent in early trade, rebounded on speculative buying on the false prospect of talks to end the violence in Bangkok. Afternoon gains were led by a 2 percent gain in Siam Commercial Bank SCC and a 1 percent rise in PTT Exploration and Production PTTE.
Jakarta, the best performing market in ASEAN so far this year, gained on financial shares with the top lender Bank Mandiri (BMRI.JK) rising 2.8 percent and Bank Central Asia (BBCA) and Bank Rakyat Indonesia (BBRI) adding over 1.8 percent.
Malaysia fell for third session led by 1.3 percent fall in Malaysia’s largest lender Maybank (MBBM).
Manila, stocks fell for a second session due to well timed profit taking and a technical correction as the market had surpassed its resistance level of 3,300.
The country’s biggest firm Philippines Long Distance Telephone Co. (PLDT) (TEL) fell 1.2 percent, while SM Prime Holdings SMPG closed 4.4 percent weaker.
Vietnam .VNI was off for a second day to its lowest since April 1, led by a 3 percent fall in insurer Baoviet BVH and Petrovietnam Finance Corp PVF.HM with foreigners staying away from the market.
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