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ASEAN STOCK WATCH Asean Affairs  24  September  2010

ASEAN Markets Will Open lower

Shayne Heffernan

Asean looks set to open lower after jobs data soured investors. The Dow Jones industrial average was down 76.89 points, or 0.72 per cent, at 10,662.42. The Standard & Poor’s 500 Index was down 9.45 points, or 0.83 per cent, at 1124.83. The Nasdaq Composite Index was down 7.47 points, or 0.32 per cent, at 2327.08.

Major indexes were little changed for most of the day before the S&P 500 broke below 1130, the high end of the summer’s trading range. Investors had hoped that the level would hold despite low trading volume, which raised questions about the rally’s stamina. Thursday’s volume was very light, with 7.21 billion shares traded on the New York Stock Exchange, the American Stock Exchange and the Nasdaq, far below last year’s estimated daily average of 9.65 billion shares.

Unemployment has always been a lagging indicator and there is no reason to think differently this time, we are looking for a strong bounce in the coming days so buying on a low open today in ASEAN looks very attractive.

In Singapore shares ended lower on Thursday, with the benchmark Straits Times Index at 3,083.13, down 0.42 per cent, or 12.97 points. 1.Sembcorp Marine’s Jurong Shipyard will receive payment of $40 million from Societe Generale as final settlement of the disputed foreign exchange transactions.

2.Genting Singapore revised upwards its purchase price of the Group’s U.K. operations from GBP340 million to GBP351.5 million. About 2.2 billion shares exchanged hands.

Gainers beat losers 249 to 243.

The Stock Exchange of Thailand (SET) composite index on Thursday gained 2.10 points or 0.22 per cent to close at 947.10 points. The market value was 47.33 billion baht, with 5.64 billion shares traded.

What was shaping up as a good day was ruined by yet another delay in the development of 3G in Thailand.The Supreme Administrative Court on Thursday upheld the Central Administrative Court’s injunction freezing the auction of 3G licences by the National Telecommunications Commission (NTC).

The court ruled that allowing the auction to proceed before the legal issues were settled could damage the country.

The NTC originally planned to hold the 3G auction on Monday this week, but the auction was put on hold when the Central Administrative Court issued a temporary injunction against it at the request of CAT Telecom, which said the NTC has no authority to grant 3G licences under the current constitution.

Stocks of telecommunications companies dropped following this morning’s ruling.

Advanced Info Service Pcl (ADVANC TB), the country’ss biggest mobile phone company, dropped 1.1 percent to 90.75 baht. Total Access Communication Pcl (DTAC TB), the second-biggest mobile phone company, fell 1.3 percent to 39.25 baht. True Corp. (TRUE TB) slid 17 percent to 4.1 baht, a two-month low.

Top five most active values were as follows;

BANPU closed at 696.00 baht, up by 16.00 baht or 2.35 per cent.

PTT closed at 291.00 baht, down by 2.00 baht or 0.68 per cent.

SCB closed at 99.25 baht, up by 2.50 baht or 2.58 per cent.

TRUE closed at 4.10 baht, down by 0.84 baht or 17.00 per cent.

PTTEP closed at 146.50 baht, up by 1.50 baht or 1.03 per cent.

Jakarta traded flat again today closing down 6.1 points, or 0.2 percent, to close at 3,337.20.

Volume was high on the day, with 8.74 billion shares worth Rp 4.91 trillion ($544 million) changing hands. Decliners outnumbered gainers 105 to 88.

Indofood Sukses Makmur, was among the biggest losers, tumbling 6.1 percent to Rp 5,400, its steepest drop since May. The fall came amid speculation that recent gains were excessive, said Hani Hazrina, of First State Investments Indonesia.

Tambang Batubara Bukit Asam rose 3.2 percent to Rp 19,400. The company said this year’s output may rise 5 percent to 12.5 million tons and sales may climb 10 percent.

Bumi Resources, the country’s largest coal miner, lost 3.5 percent.

Meanwhile, the rupiah retreated from a one-week high, falling 0.2 percent to 8,962 per US dollar as of the stock market’s close, on speculation that the central bank would intervene to limit gains, possibly hurting exports. Bonds were steady.

The rupiah has advanced 1 percent this month as overseas investors pumped money into the nation’s stocks, buying a net Rp 4.9 trillion ($547 million) of Indonesian shares this month, almost a third of the Rp 15.7 trillion in purchases from overseas this year.

The JCI has risen 32 percent in 2010, the most among Asia’s biggest markets.

Indonesian stocks, are set to extend gains by as much as 4.6 percent this year as faster economic growth draws more foreign interest, a state-owned fund said. The JCI may trade in a range from 3,300 to 3,500, said Kenny Soejatman, director of equity investment at Mandiri Manajemen Investasi, which manages about $1.9 billion in Jakarta.

The currency will likely stay stable the rest of the year, Bank Indonesia Deputy Governor Hartadi Sarwono said, following up on remarks last month that policy makers would continue to guard against excessive gains.

“There is definitely intervention risk, but not very aggressive,” said Joanna Tan, an economist at Forecast Singapore. “The currency is pretty much in a consolidation phase.”

In Manila, The Philippine Stock Exchange index gained 13.38 points or 0.33 percent to close at 4,067.43.

The days’ gains were led by the mining counter which surged by 7.41 percent led by Lepanto Consolidated Mining Co. “A” and Philex Mining Corp. whose shares respectively surged by 11.76 percent and 35 percent.

Lepanto recently gave a large South African firm the option to buy about a third of its stake in its Far Southeast gold mine in Benguet. Philex, on the other hand, is in talks to acquire an interest in various mining projects including the $5.2-billion Tampakan mine in Cotabato.

“Infrastructure and mining will benefit from P-Noy’s economic policies,” said ING Investment Management chief executive officer Paul Joseph Garcia.

Philippine National Bank likewise rose by 11.5 percent and was among the day’s most actively traded stock following reports that San Miguel Corp. president Ramon S. Ang is interested to buy the bank, “if it’s available.”

There were 90 advancers against 56 decliners at the local stock market.

Value turnover was about P5.75 billion.

Other gainers that traded on heavy volume were Universal Robina Corp., Rizal Commercial Banking Corp., Atlas Consolidated Mining & Development Corp., Lepanto “B”, Metro Pacific Investments Corp., Ayala Land Inc., Marcventures Holdings Inc., Alliance Global Group Inc. and Manila Water Co. Inc.

In Kuala Lumper, The Bursa Malaysia fell 1.13% to close at 1458.08 points on heavy selling, led by Genting.

The possible move to raise downpayment from 10% to 20% for the third and subsequent house purchases drew mixed reaction from housing professionals and a research house.

Real Estate and Housing Developers’ Association (Rehda) president Datuk Michael Yam said the capping of loans to 80% for the third and subsequent purchase would probably not discourage the wealthy from speculating because they could afford the 20% deposit.

The Finance Index lost 0.72% to 13237.18 points, the Properties Index eased 0.07% to 886.92 points and the Plantation Index tumbled 1.95% to 6743.45 points.

The market traded within a range of 20.39 points between an intra-day high of 1477.03 and a low of 1456.64 during the session. Actively traded stocks include KBUNAI, KNM, GENM-CL, COMPUGT, TIGER, TIMECOM, BURSA-CO, SIGGAS, TOPGLOVE and CAROTEC.

Trading volume declined to 999.44 mil shares worth RM1416.79 mil as compared to Wednesday’s 1332.57 mil shares worth RM2021.94 mil. Lagging Movers were GENTING (-45 sen to RM9.93), IOI (-11 sen to RM5.49), CIMB (-10 sen to RM8.19), DIGI (-68 sen to RM23.90) and MAYBANK (-6 sen to RM8.62).

Leading Movers was BJTOTO (+1 sen to RM4.17). Market breadth was negative with 221 gainers as compared to 523 losers.


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