ASEAN KEY DESTINATIONS
Asean Stock Watch-May 20
On Wall Street, gains in commodity prices lifted energy and materials companies as part of a broad stock market rally on Wednesday after three days of declines. Sentiment was also helped by the release of minutes from the Federal Reserve’s latest meeting that suggested the US economy was improving.
The Dow Jones industrial average increased 0.6 percent. The S&P index rose 0.9 percent. The Nasdaq composite went up 1.1 percent.
In currencies, the euro slipped to $1.4224 from $1.4226 late Wednesday in New York. The dollar fell to 81.93 yen from 81.63 yen.
The continued recovery in commodity prices from last week’s reversals helped the Jakarta Composite Index to a second day of gains, boosted by investors seeking assets in emerging markets.
“There was a significant increase in commodity prices, especially in the energy sector, that helped boost local equities. Crude oil rebounded on Wednesday, and palm oil continued its gains,” said Ibrahim, an analyst at Harvest International Futures.
The JCI rose 19.6 points, or 0.5 percent, to close at 3,859.81. About 9.3 billion shares worth Rp 8.1 trillion ($948 million) changed hands, a sharp jump from Wednesday’s 6.4 billion shares worth Rp 5.5 trillion. Decliners edged gainers 122 to 112.
Harum Energy, an Indonesian coal producer, ose 0.5 percent to Rp 9,250. The company said its coal production may exceed 10 million tons this year compared with 7.4 million tons in 2010. Next year’s production is projected to reach 14 million tons.
Astra International, Indonesia’s largest automotive retailer, gained 2.4 percent to Rp 61,110. It said on Wednesday that it had signed a $145 million, 36-month loan agreement for general funding purposes.
Astra Agro Lestari, Indonesia’s largest listed plantation firm, rose 1.1 percent to Rp 23,850. Palm oil advanced for a fourth day as August-delivery contracts gained 1.7 percent to 3,352 ringgit ($1,106) per metric ton in Kuala Lumpur.
The rupiah was little changed, at 8,553 to the US dollar at the close on Thursday, up from 8,557 the day before.
Share prices on Bursa Malaysia open broadly higher in the early morning trading Friday, led by blue chip counters, dealers said.
After 50 minutes of trading, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) stood at 1,547.56, up 3.54 points or 0.23 percent, after opening 0.07 of a point higher at 1,544.09.
Investors around the region are expected to be in a positive mood following the overnight increase on Wall Street with major US bellwethers finishing up between 0.2 percent and 0.4 percent at the closing bell, according to HwangDBS Vickers Research Sdn Bhd.
On Bursa Malaysia, the Finance Index advanced 46.72 points to 14,432.74, the Plantation Index rose 41.36 points to 7,750.4 and the Industrial Index gained 12.04 points to 2,753.08.
The FTSE Bursa Malaysia Emas Index added 24.729 points to 10,662.93, the FTSE Bursa Malaysia Mid 70 Index advanced 27.22 points to 11,543.08 and the FTSE Bursa Malaysia Ace Index increased 4.93 points to 4,332.87.
Market breadth was positive with gainers leading losers 253 to 155 while 213 other counters were unchanged.
Trading volume stood at 185.61 million shares valued at RM155.24 million.
For actives, Jotech Holdings rose 1.5 sen to 14.5 sen, while DBE Gurney increased half sen to eight sen and Jotech Holdings-Wa rose 1.5 sen to eight sen.
Among heavyweights, Maybank added three sen to RM8.91, while CIMB and Petronas Chemicals were flat at RM8.28 and RM6.99 respectively.
Singapore’s FTSE Strait Times Index advanced 1 percent after the government raised its 2011 economic growth forecast 1 percentage point.
The Stock Exchange of Thailand main index went up 1.59 points or 0.15 percent to close at 1,077.50 points at the end of trading session on Thursday. The trade value was 27.36 billion baht.
The SET50 index ended at 758.08 points, up 1.13 points or 0.15 percent, with a total trade value of 14.99 billion baht.
The SET100 index rose 1.69 points or 0.10 percent to stand at 1,651.67 points, with a total turnover of 19.41 billion baht.
The MAI index went down 0.66 points or 0.23 percent to close at 287.43 points, with total transaction value of 660.61 million baht.
Top five most active values were as follows;
CPF closed at 29.75 baht, down 0.75 baht (2.46 percent)
JAS (NR) closed at 2.92 baht, down 0.08 baht (2.67 percent)
PTT closed at 366.00 baht, up 4.00 baht (1.10 percent)
SICCO closed at 6.60 baht, up 2.36 baht (55.66 percent)
IVL closed at 51.50 baht, down 2.50 baht (4.63 percent)
Heavy sales of real estate stocks on the HCM City Stock Exchange yesterday forced the VN-Index down to a six-month low of 444.85 points, a loss of 2.2 percent.
Property stocks declined by an average of 3.3 per cent, with Hoang Anh Gia Lai (HAG) and Kinh Bac Corp (KBC) each dropping to their floor prices, followed by Vincom (VIC), which fell by 4.4 per cent, and Tan Tao Industrial Park (ITA), which closed down 4.3 percent.
Analysts of HCM City Securities Co said that real estate and construction stocks have taken a beating as investors came to realise that high interest rates were likely to remain in place for the remainder of the year.
"Whatever fears of a hard landing for the overall economy, there is no doubt of the widespread pain in this market," said the firm's head of research, Fiachra Mac Cana. "Prices are weak in all segments and few sales are being reported in the residential segment."
Earnings of property and construction companies this year might well consist of book earnings left over from 2010 coupled with some land sales, Mac Cana added.
Other stocks influential on the VN-Index also had a bad day, including Masan Group (MSN), which dropped to its floor price, and insurer Bao Viet Holdings (BVH). Losers outnumbered gainers overall yesterday by 178-51.
Trading was sluggish, reaching a value of just VND492.3 billion ($23.4 million) on a volume of 25.5 million shares. Eximbank (EIB) was the most-active share with nearly 1.1 million traded. Viet Capital Securities Co analysts suggested that a lack of positive economic news has kept investors away from the market, despite many share prices nearing their all-time lows. These shares were appropriate for long-term investors, but short-term investors should carefully monitor market data and wait on positive economic developments before returning to the market, they suggested.
On the Hanoi Stock Exchange, the HNX-Index fell for the ninth consecutive day to finish at 78.24 points, a decline of 0.79 percent. The volume of trades totalled 23.2 million shares worth only VND284.3 billion ($13.5 million), while decliners outnumbered advancers by 176-82.
VNDirect Securities Co (VND) was the most-active share, with a volume of 1.7 million.
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