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||Asean Affairs 7 November 2011
Asean Stock Watch-November 7
US equity markets fell Friday after mixed US jobs data and as investors braced for a Greek confidence vote that could oust the prime minister and trigger fresh eurozone debt turmoil.
The Dow Jones Industrial Average dropped 59.79 points (0.50 percent) to 11,984.68 in closing trade.
The tech-heavy Nasdaq Composite shed 11.88 points (0.44 percent) to 2,686.09, while the S&P 500-stock index, a broader measure of the markets, lost 7.82 points (0.62 percent) to 1,253.33.
Indonesian stocks rebounded on Friday after Greece called off a referendum on a euro zone rescue fund, ending a rough week of trading on a high.
The Jakarta Composite Index advanced 77.82 points, or 2.1 percent, to 3,788.63. About 4.27 billion shares worth Rp 4.10 trillion ($459 million) were traded. Gainers easily outnumbered decliners by 190 to 35.
Foreign investors were net buyers on Friday, by Rp 612 billion.
The JCI had a volatile week, swinging from losses to gains on an almost daily basis over the economic and political uncertainty in Greece. The index lost 1.2 percent for the week.
“The market was reacting to Greek Prime Minister George Papandreou’s decision to go on with the European Financial Stability Facility,” said Ikhsan Binarto, an analyst with Indo Premier Securities.
The new president of the European Central Bank, Mario Draghi of Italy, made a surprise move to cut the benchmark rate by 25 basis points to 1.25 percent.
Ikhsan said investors were hoping the cut would reduce the debt rate in euro zone countries.
He said all eyes would remain on Europe next week and that volatility was expected to continue. He said investors might want to put their money in the banking sector, which he said was relatively resilient and would be supported by easing inflation.
On the Indonesia Stock Exchange on Friday, the financial sector gained 2.7 percent. Bank Mandiri, the largest bank by asset, climbed 4.4 percent to Rp 7,200. Bank Negara Indonesia, the fourth-largest bank, rose 2.6 percent to Rp 4,000.
Harum Energy, a coal miner, gained 1.2 percent to Rp 8,200. A Harum subsidiary recently obtained a license to exploit a location in East Kalimantan that could increase its production by a million tons, to 1.5 million tons.
Cigarette maker Gudang Garam rose 3.7 percent to Rp 60,550. In all, the consumer sector gained 2.1 percent.
The rupiah strengthened 0.2 percent against the dollar to close at 8,962. The currency weakened 1.5 percent for the week.
The FBM KLCI and other stock markets in Asia resumed on Friday with an uptrend following Greek Prime Minister George Papandreou saying No' to the referendum on the financial rescue package, along with interest rate cuts by the European Central Bank.
Locally, lower liners were back in play, with the likes of SAAG, Karambunai, Envair and Harvest all making their presence extremely felt by being actively traded on the volume list.
At 5 p.m., the FBM KLCI was up 15.14 points to 1,477.51. There were a total of 591 gainers and 194 losers with 248 stocks unchanged.
Nymex crude oil was down $0.40 to US$93.67 per barrel.
Spot gold was down US$5.20 at US$1,758.62 per ounce.
The Ringgit was traded at 3.1255 to the Dollar.
Local stock prices rebounded on Friday as investors voiced relief that Greece had shelved a plan to put to a popular vote a long-awaited European bailout plan.
The main-share Philippine Stock Exchange index surged by 61.47 points or 1.46 percent to close at 4,271.72.
This was after Greek Prime Minister George Papandreou reconsidered an earlier referendum proposal that could have jeopardized a European agreement to bail out Greece and boost European banks.
At the local market, all counters traded higher, especially the financial sub-index which bounced by 1.6 percent.
Turnover amounted to P4.54 billion. There were 106 advancers against 45 losers while 25 stocks were unchanged.
Singapore shares closed higher on Friday, with the benchmark Straits Times Index at 2,848.24, up 1.36 percent, or 38.20 points.
About 1.5 billion shares exchanged hands.
Gainers beat losers 317 to 154.
The Stock Exchange of Thailand main index went down 0.25 point or 0.03% to close at 957.31 points at the end of trading session on Friday Afternoon. The trade value was 21.06 billion baht, with 2.30 billion shares traded.
The SET50 index ended at 675.61 points, down 1.08 points or 0.16 percent, with a total trade value of 15.56 billion baht.
The SET100 index fell 1.51 points or 0.10 percent to stand at 1,461.33 points, with a total turnover of 18.45 billion baht.
The SETHD index went up 0.03 point or 0.00 percent to stand at 953.74 points, with total trade value of 4.86 billion baht.
The MAI index rose 5.28 points or 2.18 percent to close at 274.33 points, with total transaction value of 597.57 million baht.
Top five most active values were as follows;
PTTGC closed at 64.75 baht, down 0.25 baht (0.38 percent)
BANPU closed at 576.00 baht, down 14.00 baht (2.37 percent)
PTT closed at 291.00 baht, down 3.00 baht (1.02 percent)
JAS closed at 1.70 baht, down 0.01 baht (0.58 percent)
IVL closed at 32.50 baht, down 0.50 baht (1.52 percent)
National stocks followed yesterday's movements by rallying in HCM City and tumbling in Hanoi on Friday.
On the HCM Stock Exchange, the VN-Index added 0.5 percent to 410.57 points, although losers outnumbered gainers by 129-83.
Market value jumped 43 percent over yesterday's level, totaling VND659.1 billion (US$31.3 million). Trading volume reached 34 million shares.
Only five of the top 15 blue chips managed gains between 0.8-3.7 percent, including insurer Bao Viet Holdings (BVH), software giant FPT (FPT), food processor Masan (MSN), Vinamilk (VNM) and hotel developer Vinpearlland (VPL).
Property trading firm Hoang Quan (HQC) saw the highest volume of more than 1.7 million shares exchanged on the southern bourse.
Meanwhile on the Hanoi Stock Exchange, the HNX-Index pared earlier gains to conclude the session 0.7 percent lower at 65.97 points. One third of listed stocks lost value.
Both the value and volume of trades slightly fell from yesterday's figure, standing at VND271.1 billion ($12.9 million) and 26.4 million shares, respectively.
Kim Long Securities Co (KLS), as in the previous sessions, was the most active code nationwide with investors exchanging 2.97 million of its shares.