ASEAN KEY DESTINATIONS
Asean Stock Watch-May 31
US markets were closed due to the Memorial Day holiday.
A lack of catalysts saw the three-day rally on the Jakarta Composite Index come to an end on Monday, as investors priced in first-quarter financial earnings and easing inflation, analysts said.
The JCI fell 6.24 points, or 0.16 percent, to close at 3,826.14. More than 5.19 billion shares worth Rp 6.97 trillion ($815 million) changed hands. Decliners beat gainers 133 to 82.
“The market needs more catalysts to draw investors’ appetite,” said Joseph Pangaribuan, an analyst with brokerage Samuel Sekuritas. “Financial earnings announcements and news about dividends have been priced in.”
He said expectations that the Central Statistics Agency (BPS) would announce slower inflation on Wednesday had also been priced into the market.
The construction and agribusiness sectors, which fell 1.01 percent and 0.72 percent, respectively, led Monday’s retreat.
Bakrie Plantation, Indonesia’s third-largest plantation company, lost 2.2 percent to close at Rp 445. Jaya Agra Wattie, another plantation company, fell 1 percent on its trading debut to close at Rp 495.
Ibrahim, an analyst with Harvest International Futures, said some investors dumped agriculture-related stocks because of news about President Susilo Bambang Yudhoyono’s instruction to delay any licenses for new palm oil planting areas.
The rupiah rose to a one-week high on easing inflation. Consumer prices gained 5.94 percent this month from a year earlier, compared to a 6.16 percent rise in April, according to a Bloomberg survey of 19 economists.
The rupiah strengthened 0.3 percent to trade at 8,548 to the US dollar as of the market’s close on Monday. It has appreciated 0.2 percent this month, the second-best performance among Asia’s 10 most-traded currencies excluding the yen.
Share prices on Bursa Malaysia ended lower yesterday on selling pressure in selected blue chips, particularly plantation and finance-related counters, dealers said.
At the close, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) fell 0.38 percent, or 5.85 points, to close at 1,542.84 after opening 1.38 points higher at 1,550.07.
The dealers said among the factors that contributed to the loss was investors' concern over the outlook of the US economy, rising commodity prices and the European debt woes.
The Finance Index dropped 35.19 points to 14,328.29 and the Plantation Index declined 33.79 points to 7,709.69 but the Industrial Index was 9.2 points higher at 2,726.96.
The FTSE Bursa Malaysia Emas Index declined 39.44 points to 10,594.64, the ACE Index eased 38.84 points to 4,258.97 and the Mid 70 Index dropped 16.38 points to 11,428.93.
Losers led gainers 518 to 242 while 272 counters were unchanged, 417 untraded and 27 others suspended.
Turnover declined to 681.366 million shares worth RM1.241 billion compared with last Friday's 947.812 million shares valued at RM1.689 billion.
Among active stocks, KNM-CH fell half-a-sen to 4.5 sen, CME was unchanged at 9.5 sen and Zelan fell 3.5 sen to 40 sen. As for heavyweights, Maybank declined 1 sen to RM8.84, CIMB fell 3 sen to RM8.26, Sime Darby rose 2 sen to RM9.15 and Genting lost 22 sen to RM11.
Trading in Tenaga Nasional Bhd's shares were suspended from 2.30pm until 5pm. As at 12.30pm, Tenaga was traded at RM6.52.
The government had announced that average electricity tariffs would be raised by 2.23 sen per kilowatt hour (kWh), or 7.12 per cent, to 33.54 sen per kWh from 31.31 sen per kWh, effective June 1.
Volume on the Main Market fell to 553.716 million units worth RM1.221 billion from last Friday's 664.414 million units worth RM1.621 billion.
Turnover on the ACE Market was lower at 75.777 units worth RM12.72 million from the 183.893 million units valued at RM30.794 million previously.
Meanwhile, FBM KLCI futures on Bursa Malaysia Derivatives closed lower yesterday in tandem with the performance of the cash market.
May 2011 and June 2011 declined 3.5 points each to settle at 1,544.5 and 1,544.0 respectively, September 2011 fell 4.5 points to 1,543.0 and December 2011 lost 2.5 points to 1,539.5.
Volume declined to 9,654 lots from the 20,525 lots last Friday while the open interest appreciated to 30,084 contracts from 27,928 contracts previously.
Philippine share prices on Monday extended their winning streak to three even though the local economy expanded at a slower pace in the first quarter.
At the Philippine Stock Exchange, the composite index jumped 20.73 points, or 0.49 percent to 4,295.24, while the broader all shares index gained 9.70 points, or 0.33 percent to 2,989.32. The sub-indices ended the day mixed, but gains were led by the industrial counter, which rose 1.66 percent.
Gainers beat losers, 66 to 59, while 49 issues were flat. A total of 4.97 billion stocks worth P3.25 billion changed hands.
“Investors remain attracted to issues that can give them real value for the year,” said Astro del Castillo of First Grade Holdings.
Del Castillo pointed out that that local economy’s slower growth rate in the first quarter was “within expectations.”
“We’re expecting slower growth this year so the market did not react with the lower GDP figure in the first quarter,” del Castillo said.
The country’s gross domestic product grew 4.9 percent in the first three months amid a drop in global trade and less spending by the government.
This was lower than the 8.4 percent expansion in the same period last year that stemmed from election-related spending.
Local stocks bucked the weakness of Asian markets, which were mostly lower on concern about a global slowdown, dragged by the lingering worries over Europe’s debt woes and mixed US economic data.
The thin volume on Monday indicates that the market’s rally may be losing steam and it may succumb to profit taking in the next couple of sessions, del Castillo said.
The peso, along with other Asian currencies, rallied against the dollar on Monday as weak US economic data and fears of a Greek debt default kept many investors on the sidelines.
At the Philippine Dealing System, the peso gained 6 centavos to close at 43.315 against the US dollar from 43.37 last week.
The dollar-peso pair opened at 43.30 and moved to a high of 43.33 and a low of 43.25.
Traders noted that the Bangko Sentral ng Pilipinas was bidding behind at the 43.29 to 43.31 levels, which brought players to pull back their offers, ensuing in massive short-covering.
Total trading volume slowed to $582.5 million on Monday from $695.77 million last Friday. The currency pair is expected to trade at the 43 to 43.60 range within the week.
Shares closed up 0.16 percent, or 5.08 points, at 3,140.60, as investors sought bargains in Chinese shipbuilder Cosco, helping it to rebound from recent losses, and also bought Mapletree Commercial Trust after positive analysts' calls on the stock.
"STI had been trading at a tight range over the last three months due to lack of positive news. We expect investors to continue trading cautiously for this week," said an analyst.
Thai composite stocks index closed on Monday at 1,076.50, up 9.50 points, or 0.89 percent amid Bt 19.94 billion turnover.
Blue chip SET-50 index was at 757.01, up 7.73 points, or 1.03 percent.
Top five active (value) stocks: TOP, PTTEP, PTT, JAS, BBL, PTTCH.
The VN-Index saw an increase of 0.31 percent, closing at 412.10 points. Thanks to the heavy support of large capitalised shares, the index has experienced three increasing sessions in a row.
Four blue chips, including insurer Bao Viet Holdings (BVH), food producer Masan Group (MSN), property developers Vincom (VIC) and Vinpearlland (VPL) hit ceiling prices, pulling the index up despite decliners outnumbering advancers by 168-68.
Around 63 percent of decliners, including many large caps such as Phu My Fertiliser (DPM), software producer FPT Corp (FPT), steel producer Hoa Phat Group (HPG), Vietcombank (VCB), Sacombank (STB) and PetroVietnam Finance (PVF), dropped to floor prices,.
In HCM City, today's trade volume remained sluggish with over 27 million shares, worth around VND515.8 billion (US$25 million), changing hands.
Refrigeration Electrical Engineering (REE) was the most active share on the southern bourse today with over 3 million of its shares traded, an increase of 1.9 percent, closing at VND10,700 ($0.52).
On the Hanoi Stock Exchange, the HNX-Index lost a landmark 70 points, declining 1.72 percent to 69.61 points.
Losers outnumbered gainers by 180-97.
Trading volume decreased by 10 percent from Friday's session to 28.5 million shares, worth VND301.7 billion ($14.6 million).
The PetroVietnam Construction Co (PVX) was the most heavily-traded share with 3.11 million shares exchanged, closing on an increase of 2 percent or VND9,900 ($0.48).
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