ASEAN KEY DESTINATIONS
Asean Stock Watch-May 6
The Dow Jones Industrial Average fell 139.41 points, or 1.1 percent to close at 12,584.17. The S&P 500 fell 12.22 points, or 0.9 percent, to close at 1,335.10, while the Nasdaq declined 13.51 points, or 0.5 percent to close at 2,814.72.
All key S&P 500 sectors fell, led by energy, telecom and materials. Gold closed at USD 1,476.80 an ounce, while crude oil settled at USD 99.55 a barrel.
A second consecutive day of volatility saw the Jakarta Composite Index make another slight gain, creeping up as data from the Central Statistics Agency showed economic growth slowed in the first quarter.
“When the index is at high market value or near a record close, that is when the market will be more sensitive to negative sentiment and have a bigger potential for correction,” said Frederik Daniel Tanggela, an analyst with Sucorinvest Central Gani.
The JCI rose 1.34 points, or 0.04 percent, to close at 3,816.27. Volume was heavy for a second day, with 8.2 billion shares worth Rp 5.9 trillion ($690.3 million) changing hands. Gainers beat decliners 114 to 112.
“As we enter the second quarter, the local market will attract more investors to trade here, as we can see from the rise in the trading volume on the JCI in the past few days,” Frederik said.
The economy grew 6.5 percent in the first quarter from the year-earlier period, having expanded 6.89 percent in the previous quarter. The first-quarter growth came in under Bloomberg projections of 6.89 percent.
Bank Agroniaga, an Indonesian lender, jumped 13.9 percent to Rp 180. Bank Rakyat Indonesia has offered to buy up to 341.99 million shares of Bank Agroniaga at Rp 182 each through a tender offer, boost its shares appeal.
Krakatau, Indonesia’s largest steel producer, climbed 0.9 percent to Rp 1,140. It said in a statement that it planned to build a steel mill with a capacity of 1.2 million tons a year at a cost of Rp 5.9 trillion. Construction will begin in the third quarter of this year and is scheduled to finish by 2014, Bisnis Indonesia reported.
Timah, the nation’s biggest producer of tin, fell 0.9 percent to Rp 2,800. Tin for three-month delivery plunged 4.2 percent to $30,950 per ton in London on Wednesday.
The rupiah declined 0.18 percent to trade at 8,565 to the US dollar on Thursday, as signs of a slowing US economic recovery drove regional stocks lower.
“Asian stocks are down and regional currencies are weaker after the disappointing news from the US last night,” said Gundy Cahyadi, a Singapore-based economist at Oversea-Chinese Banking Corp. “The rupiah’s weakening is driven by external factors. However, as long as the GDP number is above 6 percent, there will be positive momentum for the economy.”
At 9.30 a.m. on Friday, there were 65 gainers, 343 losers and 180 counters traded unchanged on the Bursa Malaysia.
The FBM-KLCI was at 1,510.30 down 10.88 points, the FBMACE was at 4,248.19 down 18.69 points, and the FBMEmas was at 10,408.60 down 68.37 points.
The peso weakened while Philippine share prices tumbled for the third consecutive session on Thursday, dragged by the weakness in global markets and higher inflation.
At the Philippine Stock Exchange, the composite index fell 49.53 points, or 1.15 percent to 4,248.68, while the broader all-shares index dropped 83.56 points, or 2.74 percent to 2,968.80. Decliners beat advancers, 94 to 36, while 44 issues were unchanged. A total of 7.71 billion shares worth P26.87 billion changed hands.
“Local sentiments were dragged by a fall in global markets overnight, pulling the PSE Index lower,” said Jun Calaycay of Accord Capital Equities Inc.
“The PSEi took a tumble as foreign markets’ weakness and local economic pressures dragged the index,” said Maria Arlysa Narciso of AB Capital Securities Inc.
Philippine inflation in April rose 4.5 percent, 0.8 percent higher month-on-month and on the higher end of the Bangko Sentral ng Pilipinas’ range of 3.7 to 4.7 percent.
The selldown of shares of Philippine Long Distance Telephone Co. and San Miguel Corp. (SMC), which resumed trading after a three-week suspension, also contributed to the weakness in the domestic market.
“All major indicators point to a pull back to as low as 4,200 which is also its support,” said Narciso.
Trading is expected to be lackluster Friday after the break of the PSEi’s 4,250-support caused apprehension over the near-term prospects of the market.
“The lack of positive leads, plus higher inflation and missed earnings estimate in major Asian companies, have kept a lid on optimism over local corporate first quarter numbers,” said Calaycay.
In a research note, Metropolitan Bank and Trust Co. had warned of another correction yesterday, “as the local market may take cue from losses in Wall Street last night.”
For the peso-dollar exchange rate, Metrobank had set a 42.750 to 43.000 trading range for yesterday, adding that the market would take its cue from the Monetary Board meeting and the April inflation data.
At the Philippine Dealing System, the peso also weakened, closing Thursday at 42.930 against the US dollar from Wednesday’s finish at 42.880. The exchange rate opened higher at 42.990 and climbed to 43.020 before easing to 42.860.
Trading volume eased to $1.041 billion from $1.056 billion previously.
SINGAPORE shares opened lower on Friday, with the benchmark Straits Times Index at 3,094.11 in early trade, down 0.51 percent, or 15.74 points.
Around 63 million shares exchanged hands. Losers beat gainers 98 to 28.
Thai stocks opened up 15.83 points at the start of trade Friday morning.
The Stock Exchange of Thailand main index opened at 1,058.04 points, down 15.83 points, or 1.47 percentr from Wednesday’s close. The trade value was 3.15 billion baht.
The SET50 index opened at 742.95 points, down 12.67 points or 1.68 percent, with a total trade value of 2.28 billion baht.
The SET100 index fell 26.69 points, or 1.62 percent, to 1,622.90 points, with a total turnover of 2.80 billion baht.
The MAI index opened down 0.92 points, or 0.32 percent, to stand at 287.32 points, with total transaction value of 7.62 million baht.
Top five most active values were as follows;
CPF stood at 28.75 baht, down 1.00 baht (3.36 percent)
PTT stood at 353.00 baht, down 8.00 baht (2.22 percent)
PTTEP stood at 172.00 baht, down 6.50 baht (3.64 percent)
JAS stood at 3.64 baht, down 0.08 baht (2.15 percent)
RAIMON stood at 1.18 baht, unchanged
An accelerated blue chip sell-off caused the HCM City Stock Exchange VN-Index to drop by 1.5 percent, closing at 479.29 points, on Thursday
The market saw nearly 22 million shares change hands, generating 534.3 billion VND (US$25.1 million).
Six out of the 10 largest capitalised stocks plummeted. Insurer Bao Viet Holdings (BVH) stocks fell the most by 4.8 per cent to 88,500 VND and food trader Masan Group (MSN) sawstocks falling by 4.7 percent to 123,000 VND.
Recent VN-Index rallies were attributed to the substantial gains made by MSN and BVH and their strong accumulation of foreign investors.
The 10 largest capitalised stocks, including steel producer Hoa Phat Group (HAG) and Eximbank (EIB), managed to gain while software producer FPT Corp (FPT) and PetroVietnam Finance (PVF) closed unchanged.
Saigon Securities Inc (SSI) claimed the highest trading volume of 1 million shares, the only stock trader to trade more than 1 million shares.
The Ha Noi Market HNX-Index closed at 1.31 per cent to 82.1 points. Trading volume rose by 16.4 per cent to 22.9 million shares valued at 288 billion VND ($13.7 million). Kim Long Securities (KLS) topped the trading market with 1.6 million shares traded.
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