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ASEAN STOCK WATCH 13  October  2010

ASEAN Markets to Surge Today‏

Shayne Heffernan

ASEAN markets fell Tuesday as investors were concerned about the nights trading ahead on Wall St.

Wall St opened lower as many expected but by lunch was in recovery and started a run higher.

The New York Exchanges closed up on the day so we expect to see a strong reversal of the negative sentiment in ASEAN at the open today.

Keppel in Singapore stands out as a very strong buy today.

In Bangkok, The Stock Exchange of Thailand (SET) composite index on Tuesday lost 977.08 points or 0.77 per cent to close at 977.08 points. The market value was 34.37 billion baht, with 5.01 billion shares traded.

Thailand took action to lower the Thai Baht with a 3 step plan.

The first measure is to slow down foreign capital inflow by removing the exemption from the 15 per cent withholding tax on capital-gains for fixed-income investments for foreign investors.

Another measure is to promote capital outflow by encouraging state agencies and enterprises to expedite the disbursement of investment funds in foreign currencies and buy foreign currencies in advance.

The third measure is to help small- and medium-sized business entrepreneurs affected by the appreciation of the Thai currency.

Top five most active values were as follows;

TMB closed at 2.36 baht, up by 0.08 baht or 3.51 per cent.

PTTEP closed at 169.50 baht, down by 0.50 baht or 0.29 per cent.

PTT closed at 304.00 baht, down by 2.00 baht or 0.65 per cent.

IVL closed at 31.50 baht, up by 2.00 baht or 6.78 per cent.

BBL closed at 158.00 baht, up by 1.50 baht or 0.96 per cent.

In Kuala Lumpur the KLCI index slipped 0.84 points or 0.06% to close at 1486.57 points on Tuesday as most of the regional markets fell.


Trading volume increased to 1169.15 mil shares worth RM1900.89 mil as compared to Monday’s 1094.09 mil shares worth RM1715.32 mil.

Losers were DIGI (-48 sen to RM24.30), CIMB (-5 sen to RM8.10), AMMB (-10 sen to RM5.87), BAT (-138 sen to RM48.00), and AXIATA (-2 sen to RM4.52).

Winners were SIME (+6 sen to RM8.76), GENTING (+8 sen to RM 10.60), PLUS (+9 sen to RM4.27), TM (+6 sen to RM3.50) and IOICORP (+2 sen to RM5.60).

Market breadth was negative with 420 losers as compared to 327 gainers.

The market traded within a range of 8.99 points between an intra-day high of 1493.29 and a low of 1484.30 during the session.

The Finance Index fell 0.43% to 13461.75 points, the Properties Index loss 0.20% to 953.13 points and the Plantation Index gained 1.01% to 7107.60 points on the back of a higher CPO price.

In Jakarta the JCI was flat closing down 1.5 points, or 0.04 percent, to close at 3,547.25, after gaining as much as 17 points during the first hour of trading.

Decliners outnumbered gainers 118 to 85.

About 7.2 billion shares worth Rp 5.72 trillion ($640 million) changed hands.

It gained 31 points in early trade the day before, but ended just 1.79 points higher.

“The market is calm since there’s not much news today that is able to drive the market significantly,” said Edwin Sinaga, president director of brokerage firm FinanCorpindo Nusa.

“Investors seem to be more careful in taking action these days before preparing for a future rally.”

Oil services company Elnusa lost 1.5 percent and Adaro Energy, Indonesia’s second-largest coal producer, slipped 1.2 percent as crude oil for November delivery fell as much as 1.1 percent to $81.28 a barrel in electronic trading on the New York Mercantile Exchange. A lower oil price dims the appeal of alternative fuel.

Astra International, the nation’s biggest automotive retailer, rose 1.3 percent — its biggest gain since Oct. 1.

Astra director Johnny Darmawan, chairman of the nation’s automotive industry association, says domestic car sales may rise to 800,000 units next year from an estimated 720,000 units this year, as economic expansion helps boost buying power.

Bank Tabungan Negara, meanwhile, posted a new record, advancing 3.1 percent. Vice president director Evi Firmansyah said the lender’s net income for 2010 may rise about 50 percent from the previous year.

Timah, the world’s largest tin exporter, slid 4.5 percent to Rp 3,200 (36 cents) — its steepest decline since June 7.

Meanwhile, the rupiah weakened as Asian currencies fell for a second day, led by South Korea’s won, over concerns that policy makers around the region would intervene to check appreciation that may hurt exporters.

It slipped 0.1 percent to trade at 8,939 per US dollar at the stock market’s close.

The rupiah has advanced 5.2 percent this year.

Investors have been attracted to Indonesia’s 6.5 percent policy rate, compared with Malaysia’s 2.75 percent, Thailand’s 1.75 percent and the Philippines’ 4 percent.

The rupiah reached 8,900 on Sept. 30, its strongest level since June 2007.

Bank Indonesia Deputy Governor Muliaman Hadad said on Friday that the central bank had been monitoring the rupiah’s development “very closely.”

Foreign holdings of local-currency government bonds increased by Rp 79 trillion ($8.8 billion) this year to Rp 187 trillion ($21 billion), as of Friday.

Singapore STI closed 0.4% lower on Tuesday ahead of earnings reports due in coming days and expectations of US Fed easing to boost sagging economic growth.

The Straits Times Index (STI) fell 14.05 points to end at 3,149.36 as investors took profits made on Monday.

Losers outpaced gainers 354 to 129. Overall volume traded was 1.91 billion shares worth S$1.76 billion.

The Losers, commodities firms Olam International lost 2.2% to S$3.11, Noble Group was down 2% at S$1.95, Golden Agri-Resources was off 0.8% at S$0.60 and Wilmar International lost 0.5% to S$6.02.

Rig builders also closed lower. Keppel Corp was 1.7% lower at S$9.47, while rival Sembcorp Marine slipped 0.5% to S$4.29.

The Winners, Genting Singapore rose 2% to S$2.06 while City Developments gained 2.2% to S$12.78.

In Manila, the falls comtinues, The Philippine Stock Exchange index slipped 1.24 percent or 52.31 points to 4,166.52, while the broader all-share index similarly shed 1.06 percent or 28.50 points to 2,659.70 points.

All sub-indices went in the red, with property shares dropping the most by 3.16 percent or 49.78 points to 1,525.51.

Decliners outnumbered advancers, 101 to 41, while 25 remained unchanged.

A total of 1.4 billion shares worth P6.08 billion changed hands. “The market declined to the lack of leads locally, and the sideways movement of the US market,” a local broker said.

The main Dow Jones Industrial Index gained just 0.04 point or 3.86 points on Monday.

The trader said local investors might be positioning their portfolios in time for the release of third quarter earnings results starting next week. Local companies are expected to post higher profits mainly on the back of the stronger economy.

The drop in property shares, meanwhile, was caused by the recent news that the listing of Real Estate Investment Trusts (REIT) instruments might not push through this year.

This will give more investors the opportunity to buy stocks before the index climbs to even higher levels next week


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