ASEAN KEY DESTINATIONS
Asean Stock Watch- October 6
Overnight, the Dow Jones Industrial Average wiped out intraday losses to close with a gain of 153.41, or 1.4 percent to 10,808.71. The Dow was down nearly 200 points, with 40 minutes remaining in trading.
The benchmark index for Indonesian stocks rebounded from a 13-month low on Wednesday, as the government encouraged more local investors to put their money in the equity market.
The Jakarta Composite Index rose 23.79 points, or 0.7 percent, to close at 3,293.24, after closing on Tuesday at its lowest since Sept. 7, 2010. That had brought its year-to-date decline to 22 percent.
Almost 3.3 billion shares valued at Rp 3.5 trillion ($392 million) changed hands at the Indonesia Stock Exchange (IDX) on Wednesday. Advancing shares outnumbered decliners 149 to 61.
Sentiment in the market was helped by the finance minister who said that an increase in participation by investors in Indonesia could boost the stock market.
Foreign investors, who typically account for more than half of daily trading activity, sold Rp 502 billion more in shares than they purchased on Wednesday.
“Prepare yourself so that you can expand the market and make sure it is not dominated by foreign investors,’’ Finance Minister Agus Martowardojo said in the opening speech for the Investors Forum held by the IDX.
The government forecasts the economy will grow 6.5 percent this year after rising 6.1 percent in 2010.
On Monday the Central Statistics Agency (BPS) reported that the inflation rate in September slowed to 4.61 percent from 4.79 percent in August as prices for meat, fish and fruit declined.
Lower consumer prices would help the central bank to maintain its key interest rate at 4.75 percent when policy makers meet on Tuesday and ensure economic growth at a time when the European Union’s debt crisis threatens the global economy.
“We should be able to weather the global financial crisis,’’ IDX president director Ito Warsito said at the opening of the investor forum in Jakarta. “Looking from a global perspective, our corporations remain good, their fundamentals remain solid and our economy is still sound.”
Consumer goods makers and banks were the biggest gainers in Wednesday trading.
Bank Rakyat Indonesia, the country’s second-largest lender by assets, climbed 1.9 percent to Rp 5,400. Bank Central Asia rose 1.4 percent to Rp 7,300.
Gudang Garam, the nation’s biggest publicly traded cigarette maker, added 2.3 percent to Rp 52,250. Telekomunikasi Indonesia, the largest telecommunications operator, climbed 3.4 percent to Rp 7,700.
In the currency market, the rupiah rose 1 percent against the dollar to 8,940.
Share prices on Bursa Malaysia opened higher Thursday tracking the rally in Europe and US equity markets overnight, dealers said.
At 9.35am, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 17.52 points better at 1,393.19 after opening 5.5 points higher at 1,381.17.
Major equity indices were up in United Kingdom by 3.2 percent and Wall Street rose between 1.2 percent and 2.3 percent, according to HwangDBS Vickers.
Investor sentiment improved following better economic statistics and hopes that policymakers would act to contain the European debt crisis, said a dealer.
The Finance Index surged 223.69 points to 12,686.91, the Industrial Index gained 21.65 points to 2,530.9 and the Plantation Index increased 56.63 points to 6,867.87.
The FBM Emas advanced 106.271 points to 9,410.61, the FBMT100 soared 110.01 points to 9,270.47, the FBM70 rose 91.091 points to 9,936.23 and the FBM Ace added 20.5 points to 3,585.94.
Gainers outnumbered losers 252 to 60 while 141 counters were unchanged, 1,024 untraded and 26 others were suspended.
Volume was thin with 148 million units, worth RM163.06 million, exchanging hands.
Actives, Malaysia Building Society was up six sen at RM1.35, Flonic Ho-Tech added 1.5 sen to 14 sen and GPRO Technologies was flat at 15.5 sen.
Among heavyweights, Maybank rose 20 sen to RM8.21, CIMB earned 1.5 sen to RM6.98 and Sime Darby added four sen to RM8.46
Philippine share prices on Wednesday closed slightly lower in cautious trading amid the volatility in global markets.
At the Philippine Stock Exchange, the composite index lost 6.79 points, or 0.18 percent to 3,823.13, while the broader all-shares index dipped 3.56 points, or 0.13 percent to 2,759.86.
The industrial and services sub-indices finished in the red, while the financial, holding firm, property, as well as mining and oil counters posted modest gains.
Advancers led decliners, 75 to 59, while 38 stocks were unchanged. A total of 7 billion stocks worth P6.26 billion changed hands.
“There is bargain hunting on penny stocks most especially in mining during intraday trading. But it has yet to be seen in the large caps since the overseas markets are weak,” said Freya Natividad, investment analyst at 2TradeAsia.com.
She added that the market tracked the sideways movement of large-cap companies such as Philippine Long Distance Telephone Co. throughout Wednesday’s session. PLDT was among six of the 10 most actively traded stocks that finished in the red.
“Sessions may continue to move sideways with an upward bias because of favorable indications in Europe on plans to recapitalize their banks,” Natividad said.
The market is in need of a technical rebound since it is nearing its immediate support of 3,750 to 3,800. Resistance is at 3,890.
The peso recovered Wednesday after the government reported benign inflation in September.
At the Philippine Dealing System, the peso gained 22 centavos to close at 43.860 against the US dollar from 44.151 the previous trading day.
The dollar-peso pair opened at 43.930 with bids ranging from a high of 44.080 to a low of 43.830. Total trading volume eased to $1.133 billion from $1.198 billion on Tuesday.
Singapore shares closed lower on Wednesday, with the benchmark Straits Times Index at 2,528.71, down 0.09 percent, or 2.31 points.
About 1.1 billion shares exchanged hands.
Gainers beat losers 245 to 204.
The Stock Exchange of Thailand main index went up 7.20 points or 0.84 percent to close at 862.65 points at the end of trading session on Wednesday Afternoon. The trade value was 21.92 billion baht, with 2.91 billion shares traded.
The SET50 index ended at 598.86 points, up 6.29 points or 1.06 percent, with a total trade value of 17.63 billion baht.
The SET100 index rose 12.72 points or 0.99 percent to stand at 1,297.53 points, with a total turnover of 20.14 billion baht.
The SETHD index went up 7.72 points or 0.92 percent to stand at 846.95 points, with total trade value of 6.18 billion baht.
The MAI index gained 2.48 points or 1.10 percent to close at 227.53 points, with total transaction value of 234.90 million baht.
Top five most active values were:
PTT closed at 250.00 baht, up 8.00 baht (3.31 percent)
KTB closed at 13.30 baht, unchanged
KBANK closed at 105.50 baht, up 1.00 baht (0.96 percent)
SCB closed at 97.25 baht, up 0.50 baht (0.52 percent)
PTTCH closed at 90.75 baht, down 1.00 baht (1.09 percent)
Shares continued to decline on both national stock exchanges on Wednesday due to sluggish trade. On the HCM Stock Exchange, the VN-Index slumped another 0.23 percent to close today's session at 417.21 points despite the fact that advancers outnumbered decliners by 135-81.
While many mid-cap and penny stocks rebounded, blue chip stumbles dragged the Index down. Six of the 10 largest shares by market capitalisation fell, including Vietinbank (CTG) which closed down 2.9 percent; property developer Vincom (VIC) and insurer Bao Viet Holdings (BVH) were down more than 2 percent; and food processor Masan Group (MSN) was down 1.7 percent.
Phu My Fertiliser (DPM) and dairy producer Vinamilk (VNM) broke the trend and rose by around 1 percent each.
Binh Duong Trade and Development Co (TDC) was the most active stock today with over 2 million shares changing hands, though its shares dropped to the floor price of VND9,400.
Today's trades improved overall with the trading value rising by 23 percent to VND596 billion (US$28.6 million) on a volume of nearly 38 million shares.
On the Ha Noi Stock Exchange, the HNX-Index lost value in the final minutes of trading, closing the session at 70.34 points, a decrease of 1.17 percent over yesterday. The market value remained sluggish at VND340.4 billion ($16.4 million) with over 33 million shares traded.
VNDSecurities (VND) was the most active stock with 2.67 million shares changing hands, closing up 1.8 percent at VND11,200 ($0.53).
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