ASEAN KEY DESTINATIONS
Asean Stock Watch-May 26
The Dow Jones industrial average lost 25.05 points, or 0.20 percent, to 12,356.21, dragged by mixed housing and manufacturing data.
Financial stocks suffered on Wednesday, weighing down the market as the Jakarta Composite Index closed down 5.78 points, or 0.15 percent, at 3,780.16.
“The market moved in mixed ways today but did not have enough power to close higher,” said Norico Gaman, head researcher at BNI Sekuritas.
“Many banks decided to retain their earnings to expand their lending.”
More than 9.15 billion shares worth Rp 4.06 trillion ($471 million) changed hands. Decliners beat gainers by 139 to 88.
Investors stayed away from financial stocks, Norico said, after seeing the banks’ dividend distribution was not as high as last year. He said the dividend distribution was about 30 to 35 percent compared to about 40 to 50 percent last year.
The financial sector slumped 0.77 percent as a whole. Bank Mandiri, Indonesia’s largest bank by assets, fell 2.11 percent to close at Rp 6,950. The nation’s second-largest bank, Bank Rakyat Indonesia, lost 0.81 percent to Rp 6,150.
Bank Mega, a mid-size lender, fell 1.39 percent to close at Rp 3,550. Bank Indonesia banned Bank Mega from adding new call-deposit customers and opening new branches for one year on Tuesday after an investigation into fraud cases at the bank concluded.
Other sectors, such as mining, consumer goods and infrastructure, enjoyed a better day. Mining grew by 0.42 percent, consumer goods by 0.14 percent and infrastructure by 0.47 percent.
Adaro Energy, the nation’s second-largest mining company, shed 2.15 percent to Rp 2,375 after state utility provider Perusahaan Listrik Negara announced on Wednesday that Adaro was the likely winner for a $3.2 billion coal-fired power plant project in Central Java.
Gajah Tunggal, the nation’s largest tire manufacturer, fell 3.2 percent to Rp 3,025 as rubber futures climbed in Tokyo, pushing its production costs higher.
The rupiah weakened 0.35 percent to trade at 8,603 to the US dollar as the market closed on Wednesday. “The overarching factor is still Europe’s problems, from sovereign debt issues to political uncertainties,” said Joanna Tan, a regional economist at Forecast Singapore.
Philippine share prices on Wednesday extended its decline for the fifth consecutive session to erase year-to-date gains on lingering woes from the US and Europe. At the Philippine Stock Exchange, the composite index lost 36.10 points, or 0.85 percent to 4,190.98, falling below the 4,200-line for the first time in over a month. The market is ended 2010 at 4,201.14.
The broader all-shares index dropped 17.09 points, or 0.58 points to 2,943.36. Losers beat gainers, 73 to 50, while 36 stocks were unchanged. A total of 3.04 billion stocks worth P4.76 billion changed hands.
“Share prices continues to edge lower as economic numbers in the US and Europe’s still unresolved debt woes threaten to stall global recoveries,” Jun Calaycay, Accord Capital Equities Corp., said.
Investors were also awaiting the results of Moody’s review of UK financial institutions for possible downgrade, he added.
“All these negative developments abroad easily overshadowed the positive domestic economic date on imports and manufacturing,” said AB Capital Securities Inc.
Wednesday’s movement increases the possibility of a technical rebound, but the market is expected to remain under pressure because of prevailing negative sentiments.
“The external environment is still challenged by the lack of fresh leads on which to hinge trades on,” Calaycay said.
Asian currencies also fell across the board on Wednesday amid renewed concerns over euro zone’s debt crisis will worsen, resulting in heightened risk aversion for emerging market assets. At the Philippine Dealing System, the peso shed 17 centavos to close at 43.57 from Tuesday’s 43.40 finish.
The peso-dollar pair opened at 43.43 and moved to a high of 43.60 to a low of 43.42. Total trading volume reached $812.84 million from Wednesday’s $730.93 million.
Traders said Asian markets may continue to trade in a narrow range with a downward bias as continued credit default concern lingers the market.
The currency pair is expected to trade at 43.25 to 43.55 range within the week.
Singapore shares opened lower on Thursday, with the benchmark Straits Times Index at 3,116.93 in early trade, down 0.06 percent, or 1.72 points.
Around 199.2 million shares exchanged hands.
The Stock Exchange of Thailand main index went down 8.70 points or 0.82 percent to close at 1,055.54 points at the end of trading session on Wednesday afternoon. The trade value was 22.26 billion baht.
The SET50 index ended at 740.62 points, down 7.28 points or 0.97 percent, with a total trade value of 16.25 billion baht.
The SET100 index fell 15.44 points or 0.95 percent to stand at 1,613.60 points, with a total turnover of 18.73 billion baht.
The MAI index went up 1.06 points or 0.37 percent to close at 288.60 points, with total transaction value of 912.44 million baht.
Top five most active values were as follows;
BANPU closed at 742.00 baht, up 18.00 baht (2.49 percent)
PTT closed at 348.00 baht, down 4.00 baht (1.14 percent)
CPF closed at 30.50 baht, down 0.50 baht (1.61 percent)
PTTCH closed at 145.00 baht, down 2.50 baht (1.69 percent)
TOP closed at 75.50 baht, down 1.50 baht (1.95 percent)
The VN-Index lost ground for the tenth consecutive session, diving 4 percent to close 386.36 points.
On the HCM Stock Exchange, decliners accounted for 86 percent of the listed codes.
The value of trade was modest, with 35.5 million shares, worth VND674 billion (US$32 million), changing hands, down 4 per cent in value and 9 percent in volume over yesterday's session.
The 10 largest shares in terms of capitalisation, which therefore hold the greatest influence on the VN-Index, all plummeted. Notably, eight codes bottomed out, while Sacombank (STB) dropped 2.5 percent and Eximbank (EIB) 0.7 per cent.
Most of the shares were heavily washed out, while demand was weak, with the numerous stocks being ignored.
On the Ha Noi Stock Exchange, the HNX-Index marked its 12th consecutive tumble, ending down 4 percent to 69.01 points.
Decliners outnumbered advancers by 292-15. Market value reached 88 percent of yesterday's figure, worth VND321.3 billion. Trading volume also dropped 11.4 per cent to 31.2 million shares. Kim Long Securities Co (KLS) claimed the highest traded volume at nearly 3 million shares.
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