ASEAN KEY DESTINATIONS
ASEAN Stocks to Open Lower Shayne Heffernan
ASEAN Stocks to Open Lower
Wall St had a sharp downward turn and began trading in the red late Wednesday, despite some improving economic signals offered in the morning and following several sessions that found European sovereign debt concerns prompting a global selloff earlier this week.
This will bring profit taking in ASEAN markets at open but my not hold the markets down all day, certainly the morning and the European open will be a volitile time for regional markets.
In Jakarta stocks surged 7.3 percent on Wednesday, rebounding from three-month lows the day before and leading gains in ASEAN as Bumi Resources (BUMI.JK) jumped after a court ruling.
Asia’s second-best performer this year, posted its biggest one-day surge in 18 months, snapping a five-day losing streak to the lowest since Feb. 12.
Coal miner Bumi Resources (BUMI.JK) jumped 20 percent after a court ruled against a tax investigation into one of its units.
Automotive distributor Astra International (ASII.JK), the biggest firm by market capitalisation, rose 10 percent after it forecast record 2010 car sales.
The Stock Exchange of Thailand (SET) composite index on Wednesday gained 7.65 points or 1.06 per cent to close at 728.94 points. The market value was 21.77 billion baht, with 2.89 billion shares traded.
As workers clear the ashes, some investors are also sifting through the wreckage and see good value in a Thai banking sector where stocks have skidded to five-week lows despite generally rosy forecasts on lending and profit growth.
Bangkok Bank BBL.BK, Siam Commercial Bank SCB.BK and Kasikornbank KBAN.BK, among others, look cheap in comparison with Southeast Asian rivals, they say.
But other investors are worried by political unrest, which has damaged business sentiment and tourism and could lead to an increase in bad debts and a slowdown in loan growth this year.
Lending grew in the early months of the year and most banks are sitting on huge loan-loss reserves, which will cushion any increase in non-performing loans.
In March, before protests in Bangkok turned violent, share prices were getting close to highs seen in 2008 before the global economic crisis and some analysts had expected them to reach their highest since the 1997/98 Asian financial crisis.
After the recent sell-off, valuations look cheap now.
Top five most active values were as follows;
TMB closed at 1.26 baht, down by 0.10 baht or 7.35 per cent.
PTT closed at 237.00 baht, up 4.00 baht or 1.72 per cent.
BANPU closed at 582.00 baht, up 28.00 baht or 5.05 per cent.
PTTCH closed at 89.25 baht, up 0.50 baht or 0.56 per cent.
CPF closed at 17.40 baht, up 0.50 baht or 2.96 per cent.
Singapore shares closed higher on Wednesday, with the benchmark Straits Times Index at 2,696.02 , up 1.71 per cent, or 45.41 points.
About 1.66 billion shares exchanged hands.
Gainers beat losers 377 to 128.
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