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ASEAN STOCK WATCH Asean Affairs   18  November  2010

ASEAN Markets to Rally after Wall St levels off‏

Shayne Heffernan

www.livetradingnews.com

ASEAN Markets are set for a move forward this week as the S&P 500 levels off at 1174.

This key resistance point of 1174 held and now the market will move forward.

Discount chain Target Corp jumped nearly 4 per cent to $55.62 after it forecast the upcoming holiday season would be its best same-store sales in three years. The outlook sparked a one per cent rise in the S&P retail index.

Costco Wholesale Corp, another major retailer, was one of the top percentage gainers on the Nasdaq 100, gaining 1 per cent to $66.36.

The Dow Jones Industrial Average was down 15.62 points, or 0.14 per cent, at 11,007.88.

The Standard & Poor's 500 Index was up 0.25 of a point, or 0.02 per cent, at 1178.59.

The Nasdaq Composite Index was up 6.17 points, or 0.25 per cent, at 2476.01.

In Jakarta the JCI lost 9.38 points, or 0.3 percent, to close at 3,656.46. About 6.6 billion shares worth Rp 4.8 trillion ($538 million) changed hands.

Decliners outnumbered gainers 122 to 87.

Commodities such as agricultural goods, palm oil and rubber fell on speculation that China’s central bank would raise its key interest rate to cool food price inflation that has driven edible oil prices to two-year highs.

“The fall in our capital markets was mainly driven by the decline in regional stocks and the drop in commodity prices,” said Cece Ridwanulloh, an analyst at Ekokapital Sekuritas.

Agriculture stocks led the index lower, with Astra Agro Lestari, the nation’s biggest listed plantation firm, losing 4 percent to Rp 11,750 amid declining palm oil prices.

The finance sector also was down, with Bank CIMB Niaga, the fifth-largest bank by assets, losing 1.3 percent to Rp 1,540.

It announced on Monday that it planned to hold a Rp 1.5 trillion rights issue on Dec. 30, which would dilute existing share value.

Gains from the most active stocks by value helped limit JCI losses. Coal miner Bumi Resources rose 4.1 percent to Rp 2,550, and Berau Coal gained 6.3 percent to Rp 510.

Demand for coal assets grew on news that China would become the world’s biggest electricity user by 2012.

State-owned Krakatau Steel continued to advance after its stock exchange debut last week, climbing 1.6 percent to Rp 1,300.

The rupiah extended declines, falling to 8,958 against the dollar, its lowest level in more than two weeks.

The currency fell on news from the Group of 20 summit last week that emerging markets would implement capital controls to curb rising foreign inflows.

Bank Indonesia will reportedly meet with the Finance Ministry soon to discuss managing inflows, which put the economy at risk if investors suddenly sell off Indonesian assets.

In Manila the Philippine Stock Exchange index shed 70.01 points or 1.69 percent to close at 4,069.31.

The day's downturn was led by the industrial sector, which fell by 2.16 percent. All other counters likewise tumbled by over 1 percent.

Value turnover amounted to P5.1 billion.

There were at least two stocks that declined for every single one that gained.

Investors sold down shares of Philippine Long Distance Telephone Co., Metro Pacific Investments Corp., Energy Development Corp., Megaworld Corp., Cebu Air Inc., Aboitiz Power Corp., Alliance Global Group Inc., Metropolitan Bank & Trust Co., Universal Robina Corp., Ayala Corp., Ayala Land Inc., SM Investments Corp., Manila Electric Co., SM Prime Holding Inc., Banco de Oro Unibank Inc., Bank of the Philippine Islands and Philippine National Bank.

Filinvest Land Inc. and San Miguel Corp. were among the few that bucked the downtrend.

An overnight bloodbath in Wall Street spoiled the return of bargain-hunters. The closely watched Dow Jones tumbled by 178.47 points or 1.59 percent.

"Sentiment turned sour in global markets overnight, with worries over debt problems in Europe intensifying. Ireland has yet to agree to a bail-out, while Austria reportedly threatened to block its December transfer of EU [European Union] funds because Greece is not meeting tax and deficit targets," said investment bank Credit Agricole CIB.

"While Austria’s participation in the EU funds is low, its stance nevertheless opens the door for possible actions from other members and suggests no short-term solution to the fiscal situation of peripherals," the investment bank said.

In Bangkok Post, SET index closed at 990.13, down 10.60 or 1.06% in trade worth 39.35 billion baht on Wednesday.

Stocks with most active value were as follows:

PTT decreased to 316.00 baht, down 5.00 baht or 1.56%.

PTL increased to 33.75 baht, up 2.25 baht or 7.14%.

TRUE increased to 5.95 baht, up 0.15%.

BANPU decreased to 758.00 baht, down 26 baht or 3.32%.

IVL increased to 47.50 baht, up 0.50 baht or 1.06%.

In Kuala Lumpur the Bursa Malaysia closed 0.13 percent higher at 1503.54 points.

Most Active stocks include TIMECOM, JOTECH, KBUNAI, TIME, RAMUNIA, KNM, AXIATA, MULPHA, SAAG and SINOTOP. Trading volume increased to 1325.30 mil shares worth RM1735.73 mil as compared to Monday's 1086.85 mil shares worth RM1256.45 mil.

The Winners were TNB ( 25 sen to RM8.77), PPB ( 106 sen to RM19.54), MAXIS ( 6 sen to RM5.35), SIME ( 2 sen to RM8.80) and PETD ( 30 sen to RM11.18).

The Losers were MAYBANK (-6 sen to RM9.10), CIMB (-5 sen to RM8.26), MISC (-8 sen to RM8.60), YTL (-14 sen to RM8.14) and AXIATA (-2 sen to RM4.44). Market breadth was negative with 203 gainers as compared to 645 losers.

The benchmark FBM KLCI fell as much as 0.65 percent during the day as sentiment was weighed down by the major selldown in regional markets before closing in positive territory on last-minute buying of index-linked stocks.

The Finance Index lost 0.52 percent to 13716.62 points, the Properties Index fell 1.45 percent to 984.72 points and the Plantation Index eased 0.39 percent to 7742.42 points.

The market traded within a range of 12.66 points between an intra-day high of 1504.42 and a low of 1491.76 during the session.


Shayne Heffernan brings more than 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over US$500m and 1 that reach a peak market cap of US$15billion. He has managed and overseen start-ups in Mining, Shipping, Technology and Financial Services.

 


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