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ASEAN STOCK WATCH 28  September  2010

ASEAN Markets to Open Lower

Shayne Heffernan

Wall St traded lower last night and after a surge on ASEAN Monday we can expect to see some profit taking today.

Dow Jones 10,813.79 -46.47 (-0.43%)

S&P 500 1,142.27 -6.40 (-0.56%)

Nasdaq 2,370.22 -11.00 (-0.46%)

In Manila the Philippine Stock Exchange index ended at 4,122.83, up 44.05 points or 1.08 percent from Friday’s close.

The broader All-Shares index also rose 1.34 percent to 2,584.87 points.

The day’s top gainer was toll road holding firm UEM Development Philippines Inc., which shot up 50 percent to close at P18.96.

Astro del Castillo of local brokerage firm First Grade Holdings said the Philippines’ improved image abroad as well as signs of higher corporate earnings in the third quarter would continue to push the main index even higher in the coming months.

“More financial institutions abroad are listing the Philippines as part of their investment area,” he said. “We had a minor correction last week but the consolidation gave enough energy for the bull to go higher.”

Other good news like the promise of President Aquino bringing home investments from the United States also helped keep market players in a buying mood.

All sub-indices closed in the green except for mining and oil.

Trading volume was healthy with 4.78 billion shares changing hands for P6.61 billion. There were 90 gainers while 71 issues declined and 30 were unchanged.

In Singapore shares ended 0.67% higher on Monday.

Local investors took their cue from the United States, where the Dow jumped 1.86 percent on Friday on upbeat sentiment after US data showed an improvement in sales of big-ticket items.

Japan’s pledge on Monday to boost spending to stimulate its economy also helped restore investor confidence about the strength of the world economy.

In Singapore, the blue-chip Straits Times Index (STI) closed up 20.78 points at 3,113.46.

In the broader market, gainers outpaced losers 320 to 203. Overall volume traded was 2.51 billion shares worth S$1.87 billion.

Bank stocks, which have suffered because of fears of the world economy slipping into a so-called double dip recession, gained on Monday.

OCBC rose 0.46% to S$8.84. DBS gained 0.99% to S$14.22 and UOB climbed 0.65% to S$18.68.

Among the losers, Wilmar International slipped 1.46% to S$6.08 and Singapore Telecommunications (SingTel) fell 0.32% to S$3.13.

In Jakarta the Jakarta Composite Index surged 70.41 points, or 2.1 percent, to close at 3,468.04, as it continued its march to a new all-time high. Volume was heavy, with about 6.97 billion shares worth Rp 6.24 trillion ($692.5 million) changing hands. Gainers trounced decliners 159 to 58.

The JCI has risen 19 percent in the third quarter, making it Southeast Asia’s third-best performer after the Philippines’ 22 percent and Thailand’s 21 percent over the period.

The region’s strong economic performance continued to lure foreign investors. Indonesia has recorded $1.39 billion of foreign buying so far in the third quarter, three times higher than the previous quarter.

Astra Agro Lestari, the nation’s largest listed plantation company, gained 2.1 percent to Rp 22,350, the highest close since April 28. Palm oil futures advanced 1.5 percent to 2,741 ringgit ($887) a metric ton in Kuala Lumpur, rising for a second day.

Astra International, Indonesia’s biggest automotive retailer, climbed 3.8 percent to Rp 58,100. Domestic vehicle sales in August rose to 64,762 units from 48,099 units a year earlier, Astra said, citing data from an industry association.

Astra Graphia, which sells and rents office equipment, jumped 24 percent to Rp 620, the steepest gain since April 2009. Kim Eng Securities said in a report on Monday that the company expected 2010 net income to rise 35 percent from a year earlier.

Tri Polyta Indonesia, producer of polypropylene, surged 13 percent to Rp 3,675, a record close.

Chandra Asri, also in petrochemicals, will be merged into Tri Polyta through a $1.2 billion share-swap, the two companies said in a statement published in Bisnis Indonesia on Monday.

Each share of Chandra Asri will be swapped with 42,660.5 new shares of Tri Polyta with completion of the transaction expected by January, the statement said.

Bank Central Asia, Indonesia’s biggest lender by market value, climbed 3.1 percent to Rp 6,700 amid speculation that next year’s inflation will remain benign, providing greater scope for the central bank to delay raising borrowing costs, said Muhamad Sugiarto, an analyst at Lautandhana Securindo.

The rupiah traded near a three-year high after foreign investors added to their holdings of the country’s assets, at 8,954 per dollar as of the stock market’s close.

In Kuala Lumpur the Bursa Malaysia rose 0.93% to close at 1464.71 points on renewed buying in key heavyweights, tracking gains on Wall Street as investor sentiment improved on the back of better-than-expected report on U.S. durable goods orders.

The Finance Index added 1.07% to 13316.12 points, the Properties Index climbed 0.36% to 895.53 points and the Plantation Index surged 0.74% to 6784.80 points.

The market traded within a range of 10.88 points between an intra-day high of 1467.18 and a low of 1456.30 during the session.

Actively traded stocks include KBUNAI, SAAG, GENM-CL, ASIAPAC, TALAM, GENM, IFCAMSC, AIRASIA, TIMECOM and CIMB. Trading volume declined to 1158.46 mil shares worth RM1622.54 mil as compared to Friday’s 1726.64 mil shares worth RM1531.23 mil.

Leading Movers were CIMB (+16 sen to RM8.25), MAYBANK (+13 sen to RM8.71), IOI (+9 sen to RM5.55), AXIATA (+6 sen to RM4.50) and TNB (+8 sen to RM9.00). Lagging Mover was YTL (-5 sen to RM7.55). Market breadth was positive with 469 gainers as compared to 292 losers.

The ringgit, which temporarily broke to 3.08 level last week, is expected to remain strong.

The local unit rallied to new 13-year highs in four straight weeks amid speculation that rules would be further loosened to enable the local currency to be traded offshore.

Some analysts believe that changes in the foreign exchange regime seem like a step in the right direction in allowing the appreciation of the local currency.

Yesterday, the local unit ended higher at 3.0900/0930 against the US dollar compared to Thursday’s closing of 3.0950/0980 after the local bourse managed to pare some of its earlier losses on bargain hunting activities.

The Stock Exchange of Thailand (SET) composite index on Monday gained 10.57 points or 1.11 per cent to close at 962.47 points. The market value was 39.86 billion baht, with 4.80 billion shares traded.

The Finance Ministry’s Fiscal Policy Office has raised its economic growth projection for this year to 7.5 per cent from 5.5 per cent.

The FPO said the inflation rate in June stood at 3.4 per cent.

The value of Thai baht was expected to be about 30 baht per US dollar by the end of this year. The average value of the baht for the entire year should stand at 31.70 baht a dollar.

The gross domestic product for next year should expand four to five per cent while the inflation rate should rise 3.5 per cent.

The policy interest rate would likely increase to two per cent by year’s end and three per cent in 2011.

Putthipong Punnakan, assistant to the industry minister, said the four-party committee tasked with resolving the Map Ta Phut disputewas opposed to the plan by Eastern People Network leader Sutthi Atchasai to organising a protest in front of the country’s largest industrial estate on Thursday,

Top five most active values were as follows;

PTTEP closed at 151.00 baht, up by 4.00 baht or 2.72 per cent.

PTT closed at 294.00 baht, up by 4.00 baht or 1.38 per cent.

BANPU closed at 708.00 baht, up by 6.00 baht or 0.85 per cent.

BAY closed at 23.50 baht, up by 1.20 baht or 5.38 per cent.

KTB closed at 16.30 baht, up by 0.50 baht or 3.16 per cent.


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