ASEAN KEY DESTINATIONS
Asean Stock Watch- October 25
United States stocks gained on strong corporate earnings on Monday and signs that Europe is making progress in tackling the euro zone debt crisis. At the close:
Dow 11,808.79 +267.01 (+2.26 percent)
Nasdaq 2,637.46 +38.84 (+1.47 percent)
S&P 500 1,238.25 +22.86 (+1.85 percent )
10-Yr Bond... 2.19 -0.03 (-1.44 percent)
30-Year Bond 3.23 -0.04 (-1.26 percent)
Indonesia’s stocks rebounded on Monday as investors anticipated positive corporate earnings reports this month and on news of a decision to protect European banks from the financial crisis.
The Jakarta Composite Index advanced 86.12 points, or 2.4 percent, to 3,706.78, ending a two-day slide. More than 5.86 billion shares valued at Rp 4.89 trillion ($552 million) changed hands. Gainers beat decliners 1191 to 45. Foreign investors bought Rp 405 billion more shares than they sold.
“Earning reports boosted the JCI on Monday, and although Europe has not completely finished discussing its rescue plan, it sent a positive message to the market,” said Ikhsan Binarto, an analyst at Indo Premier Securities.
European policy makers set a deadline of Wednesday to come up with a final plan to rescue Greece and prevent the contagion spreading to other euro zone countries. They plan to support the region’s undercapitalized banks and stop the spread to big economies such as Italy and Spain.
At home, listed companies will start announcing their financial results for the first three quarters of the year this week. Ikhsan said this was helping to improve sentiment in the market.
Selamat Sempurna, an auto parts manufacturer, rose 3.2 percent to Rp 1,280 after reporting a 66 percent increase in net income to Rp 48.56 billion in the first nine months of the year, from Rp 29.21 billion in the same period last year.
Bank CIMB Niaga, the sixth-largest lender by assets, gained 8.5 percent to Rp 1,280. Net income at the lender, majority owned by Malaysia’s Khazanah Group, rose 35 percent to Rp 2.34 trillion in the first nine months of the year, from Rp 1.74 trillion in the same period a year earlier, the company said in a brief prospectus published in a local newspaper on Monday.
Bank Central Asia, the largest lender by market value, gained 3.9 percent to Rp 7,950 as the market anticipated its financial report in the afternoon. BCA, controlled by Indonesia’s Djarum Group, said net income jumped 25 percent to Rp 7.7 trillion in the first nine months of the year.
Overall the financial sector gained 3.6 percent as the market looked for similar positive results for other listed banks, Ikhsan said.
International Nickel Indonesia, the largest listed nickel producer, rose 3.2 percent to Rp 3,250. Timah, the largest listed tin miner, climbed 2.2 percent to Rp 1,870. The mining sector was up 1.4 percent as sentiment toward euro zone countries improved.
On the currency market, the rupiah weakened 0.2 percent against the dollar to close at 8,883.
Share prices on Bursa Malaysia continued to rally in early trading Tuesday with the FTSE Bursa Malaysia KLCI (FBM KLCI) opening 3.44 points higher at 1,453.46.
At 9.18 a.m., the key index was up 5.55 points to 1,455.57, in line with the positive movement in regional markets.
HwangDBS Vickers Research said the major US equity indices jumped between 0.9 percent and 1.3 percent yesterday, lifted by higher-than-expected earnings from Caterpillar.
It added the market sentiment has also improved on optimism that the European Union (EU) is moving towards resolving the region's sovereign debt crisis.
"Taking cue from the gains on Wall Street and European markets, the benchmark FBM KLCI will probably extend its recovery today.
"Nevertheless, the key barometer is unlikely to break through the immediate resistance hurdle of 1,475 anytime soon," the research house said.
The Finance Index rose 68.859 points to 13,169.35 while the Plantation Index added 49.86 points to 7,404.56.
The FBM Emas improved 35.55 points to 9,920.24, the FBMT100 increased 36.34 points to 9,736.63 and the FBM70 was up by 36.54 points to 10,644.97 while the FBM Ace added 19.76 points to 4,036.66.
Gainers led losers by 168 to 62 while 132 counters were unchanged.
Volume stood at 86.34 million lots valued at RM44.25 million.
For the active counters, The Media Shoppe fell half-a-sen to 10 sen, MAA Group and Time DotCom rose 1.5 sen each to 48.5 sen and 59.5 sen respectively, while Time Engineering was flat at 26 sen.
Among heavyweights, Maybank rose seven sen to RM8.32, Sime Darby gained three sen to RM8.67, CIMB added five sen to RM7.24 while Petronas Chemicals advanced two sen to RM6.18.
Philippine financial markets had gains on Monday despite the uncertain results of a European leaders’ summit on the region’s debt woes.
At the Philippine Stock Exchange, the composite index added 34.48 points, or 0.83 percent to close at 4,201.08, while the broader-all shares index rose 13.97 points, or 0.48 percent to close at 2,950.18.
Decliners, however, edged advancers, 77 to 75, while 28 stocks were unchanged. A total of 9.41 billion shares worth P4.51 billion changed hands.
The index was limited to a 30- to 35-point advance despite a positive backdrop of heightened optimism following the death of Libyan dictator Moammar Gadhafi and the much awaited European Union debt summit, said Jun Calaycay of Accord Capital Equities Corp.
“The lack of clarity from Europe limited the advance with investors staying cautious ahead of Wednesday’s scheduled summit announcement,” Calaycay said.
German Chancellor Angela Merkel earlier downplayed the chances of an agreement on four major agenda points covering beefing up the bailout fund, cutting Greece’s debt without triggering a feared default, shielding banks from the fall out, and insulating Italy and Spain from the crisis.
The market is expected to begin discounting a positive output from the summit, which may encourage bargain-hunters and short-term funds back into the equities mart.
Support is pegged at 4,200, with resistance at 4,250 to 4,270.
At the Philippine Dealing System, the peso gained 17.5 centavos to close at 43.265 against the US dollar on Monday from 43.440 last Friday.
“Focus now is on a deal to be reached at another summit this coming Wednesday in order to tackle bank recapitalization, a Greek default and plans to beef up the 440 billion euros European Financial Stability Facility,” an analyst from the Metropolitan Bank and Trust Co. said in a commentary.
The dollar-peso pair opened at 43.340 with bids ranging from a high of 43.360 to a low of 43.220.
Total trading volume reached $923.280 million from $886.780 million last Friday.
“Expect players to look to the EU meeting to gauge sentiment and direction. Should the package disappoint investors, there may be a larger pullback in government security yields. However, should the package be more comprehensive than expected, some buying may materialize to take yields lower,” another analyst said.
In a separate commentary, Security Bank said the “market remains bullish that the banks will be guaranteed funding to help liquidity pressures.”
The dollar-peso currency pair is expected to trade within the 43.20 to 43.50 range today.
Singapore shares opened higher on Tuesday, with the benchmark Straits Times Index at 2,765.80 in early trade, up 0.18 percent, or 4.85 points.
Around 59.5 million shares exchanged hands.
Gainers beat losers 117 to 22.
The Stock Exchange of Thailand declined on Monday as investors assessed the potentially massive economic impact of floodwaters that are making their way slowly into Bangkok and could linger for weeks.
The SET index moved between 905.70 and 973.40 points and closed on Friday at 916.34, down 4.13 percent, from a week earlier Local institutions were net sellers of 2.09 billion baht, brokers sold 948.06 million and retail investors 1.42 billion baht worth of shares. Foreigners were the only net buyers at 4.47 billion baht.
Big movers: Large-cap stocks, which are expected to face some effects from flooding, included PTT, SCC and IVL. PTT shares closed at 284 baht, down 2.74 percent from the week before. SCC shed 1.7 percent to 289 baht, and IVL fell 1.5 percent to 32.25 baht.
Banking was in play as investors speculated on Q3 financial results. KTB closed down 12.3 percent at 13.90 baht and KBANK lost 2.9 percent to 115 baht.
Shares added value in HCM City but lost ground in Hanoi in spite of earlier gains.
On the HCM Stock Exchange, the VN-Index closed 0.83 percent higher at 414.46 points.
Trading value, however, dropped 36.7 percent from last Friday's close to just VND346.8 billion (US$16.6 million) on a volume of 21.5 million shares.
The index was mainly lifted by the increase of food processor Masan (MSN) and Eximbank (EIB), which hit their ceiling prices. Three other blue chips also gained, adding between 1.1-2.4 percent to their share price. The gainers included real estate developer Vincom (VIC), PetroVietnam (PVF) and insurer Bao Viet Holdings (BVH).
Meanwhile, half of the 10 largest shares led by market capitalisation tumbled.
Property trader Hoang Quan (HQC) was the most active code with 1.3 million shares changing hands. However, its share price fell by 2.9 percent to VND10,200 per share.
Meanwhile on the Ha Noi Stock Exchange, the HNX-Index retreated 1 percent to end at 68.43 points.
The volume of trades reached 27.7 million shares, a 30.8 percent decrease, worth VND270.7 billion ($13 million).
Kim Long Securities Co (KLS) saw the highest trading volume nationwide with 3.94 million shares exchanged. It closed unchanged from last Friday's session at VND10,300.
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