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ASEAN STOCK WATCH Asean Affairs   23  November  2010

ASEAN Markets will come under pressure

Shayne Heffernan

ASEAN Markets will come under pressure today after yet another European Debt Crisis and new FBI raids on Goldman Sachs.

Agriculture and Raw Materials are still our main focus across Asia.

U.S. stocks trimmed losses as a rally in technology and retail shares offset a drop in banks after federal agents raided three hedge funds and investors grew more skeptical that an Irish bailout will stop Europe’s debt crisis from spreading.

Financial shares ranked among the hardest hit. Federal authorities may file a series of insider trading cases against hedge fund traders, consultants and Wall Street bankers within weeks, sources said.

Market Chart

Dow Jones 11,178.58 -24.97 (-0.22%)

S&P 500 1,197.84 -1.89 (-0.16%)

Nasdaq 2,532.02 +13.90 (0.55%)

In Jakarta the JCI rose 16.18 points, or 0.4 percent, to 3,741.23. The measure advanced for a fourth-straight day. Some five billion shares valued at Rp 4.71 trillion ($527 million) changed hands. Gainers outnumbered decliners 108 to 97.

Analysts said Ireland’s request for relief from the European Union and the International Monetary Fund cast doubts on the recovery in the West and is expected to whet investors’ appetite for emerging market assets.

Ebeling Heffernan Strong buy Astra Agro Lestari, Indonesia’s biggest listed plantation stock, jumped 5.3 percent to Rp 25,900, it sharpest increase since Oct. 25. The stock was rated “overweight” with a share-price estimate of Rp 30,808 from HSBC.

Bumi Serpong Damai, a property developer, rose 2.2 percent to Rp 920. The company’s shareholders have approved a plan to sell new shares in a Rp 5 trillion rights offer, corporate secretary Feniyati Tenggara said.

Telekomunikasi Indonesia, the nation’s largest telecom, advanced 1.2 percent to Rp 8,400 after Harry Su, an analyst at Bahana Securities, raised the stock’s rating to “buy” from “hold.”

In mining, Aneka Tambang gained 1.9 percent to Rp 2,625, while Tambang Batubara Bukit Asam lost 0.95 percent to Rp 20,950.

However, the JCI spent much of the day recovering from falls in the finance sector. Shares of Bank Rakyat Indonesia, the nation’s second-largest lender by value, declined 0.42 percent to Rp 11,850. Bank Central Asia slid 2.2 percent to Rp 6,800.

The rupiah edged up to 8,920 against the dollar as of the market’s close on Monday, but analysts said the news from Europe would further strengthen the currency.

“Ireland asking for help should provide positive sentiment for the rupiah,” said Saiful Adrian, an analyst at Danareksa Sekuritas.

Ireland became the second European Union member after Greece to seek a rescue from overwhelming debt.

In Manila the Philippine Stock Exchange index was down 16.71 points or about 0.4 percent to 4,186.89.

The decline was led by the holding firms which fell by 1.42 percent.

Only the financial counter bucked the day’s downturn, buoyed by gains posted by Metropolitan Bank & Trust Co. and Banco de Oro Unibank which earlier both reported robust third quarter corporate results.

Value turnover was heavier at P7.6 billion compared to P5-P6 billion daily turnout in previous days. There were 47 stocks that gained in share prices against 86 that declined and 36 that were unchanged.

Foreign investors remain cautious, reassessing their gains after the main index hit new historic highs in previous weeks prior to a recent correction.

There was P490 million in net foreign selling at the local market on Monday.

The country’s largest nickel mining firm Nickel Asia Corp. was the day’s most actively traded stock, its share price rising by 10 percent to P16.50 from an initial public offering price per share of P15.

The losers were Cebu Air Inc., Aboitiz Power Corp., Alliance Global Group Inc., Oriental Peninsula Resources Group Inc., DMCI Holdings Inc., First Philippine Holdings Corp., Energy Development Corp. and Megaworld Corp.

The winners were Ayala Land Inc., Metro Pacific Investments Corp. and San Miguel Corp.

In Kuala Lumpur the Bursa Malaysia lost early gains and closed 0.19% lower at 1503.20 points as investors showed very cautious sentiment.


The Losers were DIGI (-80 sen to RM24.80), YTL POWER (-10 sen to RM2.50), GENTING (-6 sen to RM10.16), PPB (-28 sen to RM18.80) and MAYBANK (-3 sen to RM8.93).

The Winners were CIMB (+8 sen to RM8.41), AMMB (+7 sen to RM6.32), SIME (+2 sen to RM8.82), YTL (+6 sen to RM8.36) and MAXIS (+2 sen to RM5.34). Market breadth was negative with 350 gainers as compared to 398 losers.

The Finance Index added 0.17% to 13779.50 points, the Properties Index eased 0.10% to 995.71 points and the Plantation Index lost 0.26% to 7738.87 points. The market traded within a range of 7.31 points between an intra-day high of 1510.13 and a low of 1502.82 during the session.

Trading volume declined to 968.59 mil shares worth RM1165.85 mil as compared to Friday’s 1023.77 mil shares worth RM1436.43 mil.

The Stock Exchange of Thailand (SET) composite index on Monday rose 10.42 points or 1.03 per cent to close at 1,019.19 points. The market value was 31.02 billion baht, with 4.77 billion shares traded.

Thailand’s economy grew 6.7 per cent year-on-year in the third quarter of 2010, National Economic and Social Development Board (NESDB) secretary-general Arkom Termpitayapaisit said on Monday.

However, Mr Arkom said, the economic growth in the last quarter contracted 0.2 per cent from the second quarter.

The country’s gross domestic product in the first nine months of this year rose 9.3 per cent when compared to the same period of last year, thanks to continuous expansion in exports, domestic consumption at 4.9 per cent and investment at 13.9 per cent.

The NESDB expected the Thai economy in the fourth quarter to drop 0.3 per cent due to the heavy flooding in many areas of the country, but the GDP for the entire 2010 should increase 7.9 per cent.

This year’s inflation rate should stand at 3.2 per cent while exports should expand 25.1 per cent.

Risk factors in the fourth quarter included the strengthening baht, the impact from flooding, the fluctuation of oil prices and a reduction in consumption.

“The Thai economy is primarily driven by strong exports while the tourism sector has recovered quickly. Household spending is at a satisfactory level and private investment continues to expand,” Mr Arkom said.

The NESDB official said the GDP for next year would likely move up at a slower pace at 3.5 to 4.5 per cent, with an expected inflation rate of 2.5 to 3.5 per cent. The export value for 2011 should increase 11.7 per cent.

Top five most active values were as follows;

CPF closed at 24.70 baht, up by 1.20 or 5.11 per cent.

TRUE closed at 6.10 baht, up by 0.45 or 7.96 per cent.

ITD closed at 4.74 baht, down by 0.26 or 5.20 per cent.

In Singapore the Straits Times Index dropped 0.2 percent to 3,190.92.

Golden Agri-Resources Ltd. , the world’s second- biggest palm-oil producer, slipped 0.7 percent to 71.5 Singapore cents. Indofood Agri Resources Ltd. (IFAR SP), the palm-oil unit of Indonesia’s biggest noodle maker, dropped 1.1 percent to S$2.63.

Wilmar International Ltd. The world’s largest palm-oil trader fell 0.5 percent to S$6.15. UBS AG lowered its share-price estimate to S$7 from S$8 and maintained its “buy” rating.

City Developments Ltd. , Singapore’s second-biggest developer, declined 3.2 percent to S$12.58. HSBC Holdings Plc rated the stock “underweight” with a share-price estimate of S$12.60 in new coverage.

Ezra Holdings Ltd. , a provider of logistics services to the oil and gas industry, climbed 1.2 percent to S$1.74. The company said it won ship charter deals valued at $51 million. Separately, the company said it will invest $130 million to acquire four multipurpose platform supply vessels.

Global Logistic Properties Ltd. , a logistics company whose customers include Wal-Mart China, Deutsche Post AG’s DHL and FedEx Corp., increased 1.8 percent to S$2.26. Citigroup Inc. initiated coverage of the stock, with a “buy” rating and a share-price estimate of S$2.78.



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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