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||Asean Affairs 28 October 2011
Asean Stock Watch- October 28
Stocks surged 3 percent on Thursday as an agreement by European leaders to help contain the region's two-year debt crisis lifted a cloud hovering over markets.
The Dow Jones industrial average was up 339.51 points, or 2.86 percent, at 12,208.55. The Standard & Poor's 500 Index was up 42.59 points, or 3.43 percent, at 1,284.59. The Nasdaq Composite Index was up 87.96 points, or 3.32 percent, at 2,738.63.
The day's gains lifted the S&P 500 above its 200-day moving average for the first time since the beginning of August, a sign of an improving trend for stocks after five straight months of losses.
It was the strongest day for volume since October 4, and the rise above the 200-day moving average may pull more long-term buyers into the market in coming days. About 11.95 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, well over last year's daily average of 8.47 billion.
Jakarta stocks rallied for a fourth successive day on Thursday on news of a rescue plan for Greece.
The Jakarta Composite Index rose 74.40 points, or 2 percent, to 3,813.00, its highest close since reaching 3,835.18 on Sept. 16. About 9.19 billion shares worth Rp 7.92 trillion ($895 million) changed hands.
Gainers topped decliners 223 to 30. Foreign investors bought Rp 586 billion more in shares than they sold.
“This was supported by positive sentiment from the result of the European leaders’ summit,” said Deni Hamzah, an analyst at Corfina Capital. He added that markets were buoyed despite the fact it would take some time to inject funds into Greece.
The EU leaders’ agreement includes a deal with Greek debt holders that writes off 50 percent of their bonds, as well as increasing the European Financial Stability Facility and recapitalizing banks.
“Domestically, the index was also helped by earnings reports that are mostly as expected or above expectations,” Deni said.
The agribusiness sector rose 4.9 percent in Jakarta while mining was up 3.8 percent.
Bumi Resources, Indonesia’s largest listed coal producer, rose 6.7 percent to Rp 2,400 while state coal miner Tambang Batubara Bukit Asam was up 5.5 percent at Rp 18,200. International Nickel Indonesia gained 4.5 percent to Rp 3,475 and state-owned tin producer Timah rose 4.8 percent to Rp 1,980.
Astra Agro Lestari, the nation’s largest listed plantation firm, was up 5.2 percent at 21,450, while Sinar Mas Agro Resources rose 7.4 percent to Rp 6,500.
Bank Mandiri, the nation’s largest lender by assets, gained 4.4 percent to Rp 7,150. Investors are anticipating large profits in today’s earnings report as its peers have reported an average increase in profits of 20 percent. Adira Dinamika Multi Finance, the financing unit of Bank Danamon, rose 11.8 percent to Rp 11,400 as it reported net income in the first nine months this year at Rp 1.2 trillion, up from Rp 1.08 trillion a year earlier.
The rupiah weakened 0.2 percent to trade at 8,890 to the dollar.
Share prices on Bursa Malaysia opened higher on Friday following a rally in the global equities market, prompted by progress in Europe's plan to contain the region's debt saga, dealers said. They said the healthy US third quarter gross domestic product data to 2.5 percent also leveraged on market sentiments.
At 9.11am, the key index rose 13.3 points to 1,484.23, after opening 9.29 points higher at 1,480.22. "The plan to recapitalise European lenders and leverage on the region's rescue fund to give it firepower at US$1.4 trillion boosted market sentiments, but players remain cautious as the global economic outlook was still uncertain," a dealer said. The Finance Index rose 161.29 points to 13,452.62 while the Plantation Index gained 68.97 points to 7,561.43.
The FBM Emas improved 100.04 points to 10,149.18, the FBMT100 added 97.75 points to 9,962.10 and the FBM70 was up by 142.48 points to 11,028.79 while the FBM Ace advanced 42.53 points to 4,105.50. Gainers led losers by 403 to 25 while 98 counters were unchanged.
Volume stood at 248.459 million lots valued at RM157.841 million. Among the active counters, Pan Malaysia Capital was flat at 8.5 sen, Hubline earned half-a-sen to 10 sen, Hirotako added six sen to 94 sen and Minetech Resources gained two sen to 18 sen. Among the heavyweights, Maybank and CIMB gained nine sen each to RM8.38 and RM7.37, respectively, Sime Darby added three sen to RM8.88, while Petronas Chemicals increased eight sen to RM6.39.
The Philippine Stock Exchange is keen on hiking the minimum public float to 12 percent for all listed firms,from 10 percent currently, president Hans Sicat said.
Local shares moved higher on Thursday, buoyed by buying on shares of Philippine Long Distance Telephone Co. after telecommunication regulators approved its P69-billion acquisition of No. 3 player Digital Telecommunications Philippines Inc.
Investors also took heart with reports that the European Union has reached a deal to solve the continent’s sovereign debt crisis.
The Philippine Stock Exchange index (PSEi) ended the session at 4,267.50, rising by 42.74 points, or 1.01 percent.
Shares of PLDT led the market higher, with its share price rising by P58, or 2.48 percent, to end the session at P2,388 per share. Digitel also saw its shares advance to P1.58 per share from the previous session’s P1.54 per share.
In the meantime, shares of Globe Telecom Inc. also moved higher to P909 per share from P892, on the back of expectations that conditions imposed by regulators on the PLDT-Digitel merger would give the Ayala-controlled telco a level playing field.
All sectoral indices moved higher led by the services sector, which rose by 1.8 percent.
Trading activity was moderate ahead of the long All Saints’ Day weekend, with P3.6 billion worth of shares changing hands.
Advancers swamped decliners, 89 to 41, while 39 shares remained unchanged.
Traders expect stocks to move sideways Friday, with volume dwindling before the long weekend.
Singapore stocksclimbed to a seven-week high on Thursday led by banks and property shares with the day's trading volume jumping to 1.84 per cent of its 30-day average.
The Straits Times Index outperformed its counterparts in Southeast Asian, gaining 77.63 points, or 2.80 percent, to 2,847.57.
The Stock Exchange of Thailand main index went up 21.49 points or 2.29 percent to close at 960.17 points at the end of trading session on Thursday. The trade value was 30.47 billion baht, with 3.52 billion shares traded.
The SET50 index ended at 681.44 points, up 16.51 points or 2.48 percent, with a total trade value of 24.77 billion baht.
The SET100 index rose 35.97 points or 2.51 percent to stand at 1,471.15 points, with a total turnover of 27.92 billion baht.
The SETHD index went up 22.09 points or 2.34 percent to stand at 965.01 points, with total trade value of 8.42 billion baht.
The MAI index rose 4.20 points or 1.78 percent to close at 239.78 points, with total transaction value of 168.16 million baht.
Top five most active values were as follows;
PTTGC closed at 64.25 baht, up 2.50 baht (4.05 percent)
PTT closed at 306.00 baht, up 13.00 baht (4.44 percent)
KBANK closed at 119.00 baht, up 0.50 baht (0.42 percent)
SCC closed at 314.00 baht, up 2.00 baht (0.64 percent)
BANPU closed at 614.00 baht, up 16.00 baht (2.68 percent)
The VN-Index closed on the HCM Stock Exchange 0.64 percent higher at 414.75 points, with gainers overwhelming losers by 116-95.
However, trading value saw a 38.6 percent decrease from yesterday's figure to just VND347.75 billion (US$16.6 million), while the volume of trades reached 21.8 million shares.
The rally of the HCM City market was sustained by three of the 10 leading shares by capitalisation, including insurer Bao Viet Holdings (BVH) hitting its ceiling price, Vietinbank (CTG) adding 4.6 percent and property developer Hoang Anh Gia Lai (HAG) advancing 1.8 percent. Meanwhile, others lost value or closed unchanged.
Real estate trader Hoang Quan (HQC) was the most active stock with more than 1.9 million shares changing hands.
Meanwhile on the Ha Noi Stock Exchange, the HNX-Index dropped nearly 0.3 per- cent to 67.78 points.
Trading was sluggish. Only 21.3 million shares were traded, totaling VND202.3 billion ($9.6 million) – falling 7.1 percent against yesterday's session.
Kim Long Securities Co (KLS) along with VNDirect Securities Co (VND) claimed the highest volume on the northern bourse, with around 1.5 million shares of each code exchanged.