ASEAN KEY DESTINATIONS
Asean Stock Watch-May 5
The Dow Jones industrial average barely moved overnight, squeezing out a gain to close at 12,807.51 on lower than expected quarterly earnings of companies led by Pfizer, the world’s largest drug maker.
The S&P 500 fell 9.30 points, or 0.7 percent, to close at 1,347.32, while the Nasdaq fell 13.39 points, or 0.5 per cent, to close at 2,828.23.
Silver futures plunged below USD$40 an ounce, while gold futures fell over 1.5 per cent, dropping to below USD 1,515 an ounce.
The US dollar hit a 3-year low against a basket of currencies, as the euro gained almost USD1.50. Crude oil closed at USD 108.48 a barrel.
The Jakarta Composite Index eked out a gain on Wednesday as investors expected good news from companies yet to release first-quarter results.
“The local index is strong and still able to exceed previous records, though it does have potential for profit-taking like we saw earlier today,” said Deni Hamzah, an analyst at Corfina Capital. “Local companies’ earnings reports seem to be the main driver for the JCI to continue gaining.”
The JCI gained 1.06 points, or 0.03 percent, to close at 3,814.93. Volume was heavy with about 7.2 billion shares worth Rp 5.2 trillion ($608.4 million) changing hands. Gainers beat decliners 125 to 97.
Bumi Resources, the nation’s largest coal producer, rose 2.9 percent to Rp 3,575, while Adaro Energy, the second-largest, gained 1.1 percent to Rp 2,250. Most coal miners’ shares rose after a report by Helen Lau, an analyst for UOB Kay Hian, showed inventories in China had dropped to an 11-month low, pushing coal prices higher.
Indofood Sukses Makmur, which owns the world’s biggest instant-noodle maker, gained 0.9 percent to Rp 5,550. The company’s Singapore-listed palm oil unit, Indofood Agri Resources, had its share-price estimate raised from 2.67 Singapore dollars to 2.79 Singapore dollars by DMG & Partners Securities, which kept a “buy” recommendation on the stock.
Ricky Putra Globalindo, a producer of men’s underwear, rose 6.3 percent to Rp 185. Its first-quarter net income more than doubled from a year earlier to Rp 5.13 billion.
The rupiah weakened 0.1 percent to 8,549 against the US dollar as the market closed on Wednesday. The Central Statistics Agency (BPS) will announce the nation’s first-quarter gross domestic product growth today.
The FBM KLCI was down 6.13 points to 1,522.30 at 9.30am with 100 gainers, 151 losers and 120 counters traded unchanged on the Bursa Malaysia. Turnover was at 96.397mil shares valued at RM88.193mil. The FBMACE was up 1.62 points to 4,228.21 and the FBMEmas was down 42.42 points to 10,477.16.
Philippine share prices on Wednesday slid for the second consecutive day as investors booked profits ahead of the policy meeting of the central bank, Bankgo Sentral ng Pilipinas (BSP).
At the Philippine Stock Exchange, the composite index lost 21.16 points, or 0.49 percent to 4,298.21, while the broader all-shares index fell 18.61 points, or 0.61 percent to 3,052.26. Decliners beat advancers, 86 to 76, while 36 issues were unchanged. A total of 2.46 billion shares worth P3.78 billion changed hands.
“Today was an exercise of profit-taking by traders,” said Eduardo Banaag Jr., vice president for the investment advisory group of First Metro Investment Corp.
“Investors opted to play it safe because there might be some surprising announcements in the BSP policy meeting,” said Astro del Castillo, managing director at First Grade Holdings.
Wednesday’s movement was part of the consolidation of the market, which breached the 4,000 level early in the second quarter after a bloodbath at the start of the year, del Castillo said. Local shares also tracked the weakness in major global bourses..
Asian shares closed lower after commodity prices had their biggest one-day loss in two weeks following a run up in the past month.
Optimism was also dampened by a report that the People’s Bank of China had lingering concern about inflation.
Singapore shares opened lower on Thursday, with the benchmark Straits Times Index at 3,109.24 in early trade, down 0.15 percent, or 4.52 points.
Around 33.5 million shares exchanged hands.
Losers beat gainers 56 to 27.
Thai composite stocks index closed on Wednesday at 1,073.97, up 3.54 points, or 0.33 percent amid Bt 31.57 billion turnover.
Blue chip SET-50 index was at 755.62, up 2.19 points, or 0.29 percent.
Top five active (value) stocks: PTT, BBL, RAIMON, JAS, PTTEP.
Stocks continued their pre-holiday upswing on the HCM City Stock Exchange yesterday as trading resumed after a long holiday weekend. The VN-Index gained an additional 1.35 per cent to close yesterday's session at 486.58 points.
But the already anemic volume of trades declined by 15.9 percent from last Friday's levels to just 21.2 million shares, worth only VND583.9 billion (US$27.8 million). Gainers edged out decliners by 115-109, with 65 codes closing unchanged, but nine out of the 10 leading shares by capitalisation picked up points.
Masan Group (MSN) saw the biggest gains of the day, rising 4.9 per cent to VND129,000 per share, followed by Hoa Phat Group (HPG), up 2.9 per cent to VND35,200; property developer Hoang Anh Gia Lai (HAG), up 1.7 percent to VND42,800; insurer Bao Viet Holdings (BVH), up 1.6 percent to VND93,000; and software producer FPT, up 1 percent to VND50,500.
VietinBank (CTG) was the only loser among the top 10 shares, closing off 0.4 percent to VND28,400 per share.
Saigon Securities Inc (SSI) saw the highest volume, with 1.2 million shares traded, of which foreign investors accounted for buys of 585,600 shares. SSI closed unchanged on the day, however, at VND20,500 per share.
On the Hanoi Stock Exchange, without the assistance of major blue-chip shares, the HNX-Index continued last week's retreat, closing down 0.47 percent from last Friday to 83.19 points. Trading slowed to a volume of just 19.7 million, for a value of only VND260.7 billion ($12.4 million). Losers also outnumbered gainers on the northern bourse by 162-53.
VNDirect Securities (VND) was the most-active share nationwide, with nearly 3 million traded, but the shares closed unchanged at VND14,400.
Foreign investors concluded the day on both market as net buyers, picking up a net of about a million shares on the HCM City market and nearly 600,000 on the Hanoi market.
Au Viet Securities Co analysts predicted a likely correction in the coming days with no more supporting information to lift shares. They cautioned investors to consider carefully prior to any investing decision.
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