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ASEAN STOCK WATCH 25  September  2010

ASEAN Stocks to Set New Records

Shayne Heffernan

Strong trading in the USA will see ASEAN Stock Exchanges set new highs in the coming week.

Wall St rebounded on better tha expected Durable Goods numbers.

What to own this week in ASEAN




Genting, PNB


PT Bakrie, Bank Mendiri


NEPS, OLAM, Genting


Ayaya, PLDT

In Singapore the Straits Times Index closed up 0.3 percent to 3,092.68. STI was up 0.5 percent this week making 5 winning weeks in a row.

The STI trades at around 15.1 times estimated earnings, compared with about 17.4 times at the beginning of the year.

Most Active were Olam International Ltd. (OLAM), a Singapore-based supplier of agricultural commodities, climbed 6.8 percent to S$3.15, its highest close since November 2007.

The company said it’s in preliminary talks with Louis Dreyfus Commodities in relation to a possible business collaboration which may take the form of a merger.

Oversea-Chinese Banking Corp. (OCBC), the owner of Singapore’s biggest life insurer, gained 1.2 percent to S$8.80 after saying it plans to merge its two Indonesian units.

PT Bank OCBC Indonesia and PT Bank OCBC NISP will be merged to create PT Bank OCBC NISP, it said.

Sunright Ltd. (SUNR), the provider of semiconductor testing services, surged 28 percent to 25.5 Singapore cents.

The company reported a full-year pretax profit of S$6.08 million ($4.57 million), compared with a loss of S$6.1 million the previous year.

Total Access Communication Pcl (DTAC), Thailand’s second-biggest mobile-phone company, advanced 2.2 percent to $1.38. The government will expedite a law to establish a new telecommunications industry regulator by the middle of 2011, Finance Minister Korn Chatikavanij said.

United Envirotech Ltd. (UENV), an environmental engineering company, gained 3 percent to 51.5 Singapore cents. The company said its application to list Taiwan Depository Receipts has been approved.

In Kuala Lumpur the Bursa Malaysia fell 0.47% to close at 1451.19 points on continued selling.

The Finance Index lost 0.47% to 13175.47 points, the Properties Index rose 0.61% to 892.30 points and the Plantation Index eased 0.13% to 6734.87 points.

The market traded within a tight range of 8.66 points between an intra-day high of 1453.99 and a low of 1445.33 during the session. Actively traded stocks include KBUNAI, SAAG, TALAM, ASIAPAC, COMPUGT, NICORP, GENM-CL, KNM, ASB and GENM.

Trading volume increased to 1726.64 mil shares worth RM1531.23 mil as compared to Thursday’s 999.44 mil shares worth RM1416.79 mil.

Losers were CIMB (-10 sen to RM8.09), GENTING (-18 sen to RM9.75), AXIATA (-5 sen to RM4.44), PUBLIC BANK (-8 sen to RM12.54) and TNB (-8 sen to RM8.92).

Winners were SIME (+4 sen to RM8.37), BAT (+72 sen to RM47.70), HONG LEONG BANK (+10 sen to RM9.10), DIGI (+10 sen to RM24.00) and HLFG (+18 sen to RM9.00). Market breadth was positive with 408 gainers as compared to 307 losers.

Permodalan Nasional Bhd (PNB) announced yesterday a maiden income distribution of 6.38 sen per unit for Amanah Saham 1Malaysia (AS 1Malaysia) for the financial year ending Sept 30, 2010.

“This translates into a payout of RM204.67mil and will benefit 259,162 unitholders who collectively own 4.02 billion units of AS 1Malaysia,” said PNB chairman Tun Ahmad Sarji Abdul Hamid.

Ahmad Sarji said that until Sept 21, 2010 the fund recorded a gross income of RM294.05mil.

Profit from the sale of shares contributed RM165.47mil or 56.3%, dividend income from investee companies contributed RM99.8mil or 33.9%, while RM28.79mil or 9.8% was derived from investments in short-term instruments and other income.

In Manila the Philippine Stock Exchange index (PSEi) ended the week up 0.28 percent or 11.39 points to 4,078.87.

The broader all-share index also capped the week in the green, improving 0.4 percent or 10.16 points to 2,550.58.

Three sub-indices were up at the close of Friday’s trading, with holding firms leading the way with a 1.87-percent or 56.42-point rally to end at 3,073.45.

The remaining sub-indices declined, with the mining and oil sector performing the worst with a decline of 1.72 percent or 234.20 points to close at 13,382.18.

Positive news about the domestic economy helped improve investor sentiment, which led to continued buying, a local trader said.

The market might succumb to some profit-taking next week as investors try to pocket gains made in the past weeks, the trader said.

However, there might also be some “defensive play” as other market players try to preserve the value of their current holdings.

A total of 12.62 billion shares worth P6 billion changed hands, higher than the 8.13 billion shares worth P5.76 billion traded Thursday.

There were 81 advancers, 81 decliners and 34 unchanged issues.

The JCI jumped 60.43 points, or 1.8 percent, to close at 3,397.63 after briefly touching 3,400. Volume was heavy, with six billion shares worth Rp 5.11 trillion ($572.3 million) traded. Gainers trounced decliners 125 to 47.

Financial stocks led the way higher. Bank OCBC NISP, a unit of Oversea-Chinese Banking Corp, jumped 25 percent to Rp 1,950, its biggest rise since September 2006, after its parent company said it planned to merge the bank with affiliate Bank OCBC.

State-owned Bank Mandiri, the nation’s largest lender by assets, gained 4.8 percent after the House of Representatives on Wednesday approved its plan to sell 2.3 billion new shares in a rights offer to boost capital.

The House also approved Bank Negara Indonesia’s plan for a management stock option amounting to a 3 percent stake, or 664 million shares. BNI, the nation’s third-biggest state-owned bank, rose 7.2 percent to Rp 3,725.

Berlian Laju Tanker, the country’s largest shipping company, rose 1.8 percent to Rp 275 on news it planned to buy seven vessels worth $280 million from Japan, Investor Daily reported, citing Peter Chayson, Berlian’s general manager for investor relations.

Overseas investors bought a net $26.5 million of the nation’s shares in the first four days of the week, boosting net purchases for the year to $2.2 billion.

“The capital inflows into Indonesia’s higher-yielding assets are boosting sentiment,” said Helmi Arman, an economist and bonds strategist at Bank Danamon Indonesia in Jakarta.

“We don’t see any structural changes that will stop these inflows.”

Meanwhile, the rupiah gained 0.2 percent this week, gaining 0.1 percent on Friday to trade at 8,953 per dollar. The currency has appreciated 4.9 percent this year and touched a three-year high of 8,905 on Aug. 3. The currency was likely to be stable, with a “slight” risk of depreciation in 2011, Bank Indonesia Deputy Governor Hartadi Sarwono said this week.

The Stock Exchange of Thailand (SET) composite index went up 4.80 points or 0.51% to close at 951.90 points at the end of trading session on Friday afternoon. The trade value was 28.03 billion baht.

The Electricity Generating Authority of Thailand (Egat) will build a new 20- billion-baht gas-fired power unit at its existing North Bangkok plant this year to help meet growing demand.

Egat governor Sutat Patmasiriwat said that construction of the 800-megawatt unit could start next year for operation from 2015. The move is aimed at addressing a predicted shortfall in power supplies from the delay of two gas-fired power plants in Chachoengsao province.

The delayed plants were awarded to independent power producers but face strong opposition by local communities.

One of them belongs to Siam Energy with a planned capacity of 1,600 MW, and the other to National Power Supply Co with a capacity of 540 MW, previously scheduled to start up in 2014 and 2015, respectively.

Thai Airways International (THAI) hailed its public offering as a success yesterday with subscription demand from existing shareholders and retail investors exceeding supply.

Most existing shareholders subscribed to their entitlements and beyond, while subscriptions from retail investors were more than twice the amount offered.

THAI president Piyasvasti Amranand said the strong interest reflected investors’ confidence in THAI and its improved performance over the past year.

The flag carrier offered 221.83 million shares to existing shareholders, excluding the Finance Ministry, whose names appeared on the share register book on Aug 30 at the entitlement ratio of one old share to 0.2667 new shares.

The baht’s appreciation has hurt many business sectors, but outbound tourism will probably receive a windfall as expenses of Thais travelling abroad decline.

Charoen Wangananont, president of the Thai Travel Agents Association (TTAA), said that if the baht continues to strengthen for another three to six months, outbound tourism will prosper. However, the local political and economic situation would have to remain positive to help lift travellers’ confidence.

The TTAA expects the stronger baht will cause outbound tourism to grow by 17-18% this year. Air ticket sales for flights abroad will total 4.7 million seats, 60% of them for tourists. Forward bookings for next month are significantly higher than last year, with Japan, China and South Korea the favourite destinations.

Top five most active values were as follows;

TRUE closed at 4.46 baht, up 0.36 baht (8.78%)

SCB closed at 99.00 baht, down 0.25 baht (0.25%)

BANPU closed at 702.00 baht, up 6.00 baht (0.86%)

PTT closed at 290.00 baht, down 1.00 baht (0.34%)

KTB closed at 15.80 baht, up 0.10 baht (0.64%)


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