ASEAN KEY DESTINATIONS
Asean Stock Watch-May 27
Wall Street also ended a three-day slump after under performers led a thin rally, lifting the Dow Jones industrial average by 38.45 points, or 0.31 percent to end at 12,394.66.
Analysts suggested that Thursday’s rise may only be a one-day reprieve as investors may opt to stay on the sideline given the lack of leads and uncertainties in global markets.
The Jakarta Composite Index rode the momentum of the regional market to close up 34.65 points, or 0.92 percent, at 3,814.81 on Thursday.
“Psychologically speaking, the Indonesian market is very dependent on the regional market’s movement,” said Deni Hamzah, an analyst at Corfina Capital. He said the JCI usually followed the Nikkei and Hang Seng.
“The regional market advanced because the Dow Jones was in positive territory yesterday,” Deni added. The Nikkei 500 gained 1.25 percent and the Hang Seng Index rose 0.67 percent on Thursday.
About 5.5 billion shares worth Rp 4.5 trillion ($526.5 million) changed hands on the JCI. Gainers beat decliners 152 to 67.
Aneka Tambang, the nation’s largest nickel and gold producer, gained 2.38 percent to Rp 4,275. Nickel futures rose 0.6 percent to $23,550 per metric ton in London.
Astra Agro Lestari, Indonesia’s largest listed plantation company, gained 1.32 percent to Rp 23,050. Palm oil futures rose 0.6 percent to 3,438 ringgit ($1,129) per metric ton in Kuala Lumpur.
Indika Energy, the nation’s third-largest coal firm, rose 4.27 percent to Rp 4,275. Media reports said Indika planned to sell 20 to 30 percent of its stake in Petrosea this year, citing Indika vice president Wishnu Wardhana. Petrosea rose 9.33 percent to Rp 41,000.
The rupiah strengthened 0.3 percent to trade at 8,575 to the US dollar at the close on Thursday.
“The recovery in the rupiah and regional currencies is temporary, reacting to higher commodity prices. In the medium term, there’s still concern about Europe’s debt crisis,” said Gundy Cahyadi, an economist at Oversea-Chinese Banking Corp.
The local bourse was up in early Friday morning trade on selective buying of blue chip stocks including TNB's, where hopes of an electricity tariff hike is supporting the counter at the moment.
HwangDBS Vickers Research said in a report that there would be a sequel to the performance of TNB shares, which has fluctuated, “as the Government may announce a possible increase in electricity rates following a scheduled meeting by the National Economic Council”.
The research house said a 5 percent share price swing would translate to an approximate 4-point change in the benchmark FBM KLCI.
The index was up a third of a percent to 1,546.37 at 10.30am.
“Meanwhile, on the chart, the bellwether could try to build on yesterday's gain of 7.4-point, possibly rising towards the immediate resistance line of 1,550 ahead,” it added.
Meanwhile, markets in the region were mixed ahead of the release of several US macroeconomic indicators later in the day.
At Bursa Malaysia, 188 counters were up, 287 were down while 241 others were traded unchanged. There were 235.73 million shares traded with a total turnover of RM275.23 million. TNB rose 14 sen to RM6.44 while Genting gained 14 sen to RM11.24.
KLK was 20 sen higher at RM22.08, Batu Kawan was up 10 sen to RM16.38 and PPB added 14 sen to RM17.66.
Hong Leong Bank rose 16 sen to RM12.06 and Panasonic added 30 sen to RM24.
Spot gold gained US$4.20 to US$1,523.40 per ounce while silver added 26 cents to US$37.56. Nymex crude oil in electronic trading was 19 cents higher at US$100.42 per barrel. The ringgit was quoted at 3.031 to the US dollar and 4.297 to the euro.
Philippine share prices on Thursday ended a five-day losing streak as bargain hunters stepped in the market to pick up badly battered stocks.
At the Philippine Stock Exchange, the composite index rose 39.58 points, or 0.94 percent to 4,230.56, closing above its support of 4,200.
The broader all-shares index gained 16.13 points, or 0.55 percent to 2,959.49. Gainers beat losers, 85 to 48, while 37 stocks were unchanged. A total of 6.78 billion shares worth P4.37 billion changed hands.
Investors were also enticed to return to the market as share prices have become “tempting” to buy following the recent downtrend.
“The lack of significant and positive local factors remains an impediment to a strong run up. Foreign developments are not so encouraging either,” said Maria Arlysa Narciso of AB Capital Securities Inc.
Asian currencies were mostly higher on Thursday as higher oil prices boosted investors’ risk appetite in commodity companies while corporate announcements in Japan helped shake off worries over the euro zone debt crisis.
At the Philippine Dealing System, the peso gained 15 centavos to close at 43.42 against the US dollar from Wednesday’s 43.57 finish.
The currency pair opened at 43.46 and moved to a high of 43.47 and a low of 43.40. Total trading volume eased to $678.82 million from $812.84 million during the previous session. The currency pair is expected to end the week at a range of 43.25 to 43.55.
Thai stocks opened up 2.82 points at the start of trade Friday morning.
The Stock Exchange of Thailand main index opened at 1,068.27 points, up 2.82 points, or 0.26 percent from Thursday’s close. The trade value was 1.37 billion baht.
The SET50 index opened at 750.63 points, up 2.44 points or 0.33 percent, with a total trade value of 393.84 million baht.
The SET100 index rose 4.85 points, or 0.30 percent, to 1,635.63 points, with a total turnover of 628.23 million baht.
The MAI index opened up 0.80 points, or 0.28 percent, to stand at 290.29 points, with total transaction value of 27.18 million baht.
Top five most active values were as follows;
KBS stood at 10.20 baht, started trading today
TTA stood at 22.80 baht, down 0.20 baht (0.87 percent)
PTT stood at 354.00 baht, up 2.00 baht (0.57 percent)
PTTCH stood at 151.50 baht, up 1.00 baht (0.66 percent)
JAS stood at 2.86 baht, unchanged
Rising demand in the initial minutes of yesterday's sessions on both of the nation's stock exchanges helped stocks rebound.
On the HCM City Stock Exchange, the VN-Index gained 3 percent to finish at 398.04 points. The value of trades climbed to a two-month high of VND806 billion (US$38.4 million) on a volume of 47.2 million shares, an increase of 33 per cent by volume over Wednesday's session.
Advancers outnumbered decliners by three-to-one, and seven of the 10 leading shares by capitalisation hit their ceiling prices, including insurer Bao Viet Holdings (BVH), Vietinbank (CTG), Phu My Fertilisers (DPM), software giant FPT, financial group Hoang Anh Gia Lai (HAG), food producer Masan Group (MSN) and PetroVietnam Finance (PVF).
Eximbank (EIB) posted a gain of 1.4 percent, while Sacombank (STB) and real estate developer Vincom (VIC) were mixed before closing unchanged.
The most-active share was Saigon Securities Inc (SSI), with 3.4 million shares changing hands, followed by financial group Tan Tao (ITA), with a volume of 3.3 million shares.
On the Ha Noi Stock Exchange yesterday, the HNX-Index managed to rally after 12 consecutive days of declines, closing up 1.9 percent to 70.34 points. The value of trades jumped 76 per cent over Wednesday to VND566 billion ($27 million), with a volume of 58.7 million shares.
VNDirect Securities Co (VND) led trades with a volume of 4.7 million shares.
"Demand for stocks started growing early in the session, which encouraged more investors to pump money in," said Nguyen Thuy Duong, a broker with a Ha Noi-based securities firm, noting that most economic data including inflation, trade deficit, and FDI figures had already been announced.
These figures suggested a positive trend, and the steep decline of stock prices over the past 10 days may have whetted some investor appetites, Duong said.
"However, it's quite hard to say whether the markets have ended the gloom or not," he said. "We need several days to verify."
State Securities Commission vice chairman Nguyen Doan Hung said it wasn't yet time for regulators to intervene in the markets.
"Stock markets are symbols of a nation's economy," Hung said. "Nowadays, it's quite normal to see stagnancy in the markets."
Hung stressed on the government target to curb inflation which might have influence to other sectors, including securities. "But we should notice on the priority."
Market conditions were not as bad as believed, especially as market values and volumes continued to rise even as the VN-Index plunged. "This means investors were not panicking but considering which way to invest."
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