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ASEAN STOCK WATCH 30  September  2010

ASEAN Markets to Consolidate Gains

Shayne Heffernan

www.livetradingnews.com

On the Asean markets we are expecting some consolidation at these high levels after a slow overnight session in New York.

What to own on a dip Banpu, Cosco, PTT, Genting

In Singapore the Straits Times Index gained 0.3 percent to 3,106.03 at the close.

Shares on the STI trade at an average 15.3 times estimated earnings, compared with about 17.4 times at the beginning of the year, according to data compiled by Bloomberg.

The following shares were among the most active in the market trading today.

Beyonics Technology Ltd. (BT SP), an electronics contract manufacturer, jumped 4.2 percent to 25 Singapore cents. The company said full-year net profit increased 67 percent to S$6.9 million ($5.2 million) from a year ago.

Cosco Corp. Singapore Ltd. (COS SP), a China-based shipbuilder that also operates bulk carriers, increased 2.2 percent to S$1.84. The Baltic Dry Index of commodity-shipping rates climbed 2.2 percent in London yesterday.

Genting Singapore Plc (GENS SP), owner of one of two casino resorts in the city-state, fell 2.6 percent to S$1.90, extending its decline for a second day. The stock dropped 3.5 percent yesterday after its president and chief operating officer, Tan Hee Teck, sold 900,000 shares at S$2.05 each in the open market.

Singapore Technologies Engineering Ltd. (STE SP), Asia’s biggest aircraft maintenance company, climbed 1.8 percent to S$3.37. The company said its ST Aerospace unit received a contract to acquire aircraft and a training system for Singapore’s Air Force worth S$543 million.

Sound Global Ltd. (SGL SP), a provider of waste-water treatment services in China, surged 12 percent to 90.5 Singapore cents. DBS Group Holdings Ltd. raised its recommendation for the stock to “buy” from “hold” and increased its share-price forecast to 96 Singapore cents from 84 Singapore cents.

Venture Corp. (VMS SP), Singapore’s biggest publicly-traded electronics manufacturing services provider, gained 1.4 percent to S$9.37. BNP Paribas raised its share-price forecast to S$10.93 from S$10.42 and maintained its “buy” rating.

Yangzijiang Shipbuilding Holdings Ltd. (YZJ SP), a China- based shipbuilder, rose 1.1 percent to S$1.78. CLSA Asia Pacific Markets increased its share-price forecast to S$2.05 from S$1.65 and maintained its “outperform” rating.

In Kuala Lumpur the Bursa Malaysia rose 0.15% to close at 1461.78 points on Wednesday, lifted by strong buying interest as investor sentiment remained firm after US stocks ended higher overnight.

The Finance Index lost 0.07% to 13285.56 points, the Properties Index surged 1.61% to 907.41 points and the Plantation Index added 0.52% to 6797.52 points.

The market traded within a range of 7.17 points between an intra-day high of 1466.29 and a low of 1459.12 during the session.

Actively traded stocks include KBUNAI, TIMECOM, UNISEM-WA, TALAM, AXIATA, UEMLAND, MRCB, KNM, SAAG and TEBRAU. Trading volume declined to 905.08 mil shares worth RM1449.06 mil as compared to Tuesday’s 976.98 mil shares worth RM1350.89 mil. Leading Movers were SIME (+14 sen to RM8.53), IOI (+5 sen to RM5.55), AMMB (+7 sen to RM5.85), PPB (+18 sen to RM17.08) and GAMUDA (+5 sen to RM3.85). Lagging Movers were CIMB (-6 sen to RM8.17), AXIATA (-4 sen to RM4.40), TNB (-4 sen to RM8.84), YTLP (-2 sen to RM2.29) and MISC (-3 sen to RM8.74). Market breadth was positive with 430 gainers as compared to 283 losers.

The ringgit was traded at 3.0846 against the US dollar.

Out of the 30 stocks that made up the benchmark index, 15 counters ended higher, eight declined, while seven counters were unchanged. Market breadth was positive, with 430 risers leading 283 decliners and 306 counters flat. Total market volume was 905 million shares worth RM1.4bil.

Among the big cap stocks, plantation firms were the big winners, with Sime Darby Bhd up 14 sen to RM8.53, PPB Group up 18 sen to RM17.08 and IOI Corp 5 sen higher at RM5.55.

CIMB Group declined 6 sen to RM8.17, while both Tenaga Nasional and Axiata were down 4 sen each.

The Stock Exchange of Thailand (SET) composite index on Wednesday gained 10.38 points or 1.08 per cent to close at 969.65 points. The market value was 43.04 billion baht, with 5.92 billion shares traded.

Banpu Plc, Asean’s largest coal miner, is bullish on its financial results for the second half and 2011, given gains from share sales of its Indonesian holding company, rising coal prices and the contribution from its ongoing takeover of Sydney-based Centennial Coal.

Chief executive Chanin Vongkusolkit said yesterday that the company expected to post a record-high quarterly net profit in the three months to September with gains notably from the sales of PT Indo Tambangraya Megah (ITM), Banpu’s coal-mining holding company in Indonesia.

Banpu Minerals (Singapore) Pte earned US$395 million from the sale which diluted Banpu’s ownership in ITM to 65% but the Thai company remains the largest shareholder.

Meanwhile, Centennial will be consolidated into Banpu’s financial results in the final quarter following the closing of the tender offer due on Oct 5. So far, Banpu has acquired 63% of the Australian miner, said Mr Chanin. Centennial, with coal reserves of 406 million tonnes and total resources of 2.46 billion tonnes with 10 mines in operation, is the second largest coal player in Australia. Nearly one-third of its output is exported, mainly to North Asian countries such as Japan, Korea and Taiwan. Siam Park City Co expects its revenue to rise to 350 million baht this year, up from 300 million last year, supported by the recovery in corporate spending, especially in the coming high season.

With brighter prospects in the global economy and more local political stability, the company expects revenue will reach 400 million baht in 2011. Above all, walk-in customers should return after decreasing for two years from local political problems, said managing director Wuthichai Luangamornlert.

“We will focus more on corporations with more than 1,000 employees that are looking for places to hold annual parties or New Year parties. We are a good choice to accommodate huge numbers of people,” he said.

The company plans to install four new rides next year and has invested 3 billion baht to upgrade its 16 rides since 2006.

“I estimate there are around 10 million people in Bangkok and most of them prefer shopping in department stores during the weekend. We want to encourage people, particularly Thais, to visit amusement parks,” he said.

Top five most active values were as follows;

PTTAR closed at 27.50 baht, up 1.25 baht or 4.76 per cent.

PTT closed at 293.00 baht, up 1.00 baht or 0.34 per cent.

BAY closed at 24.70 baht, up 1.20 baht or 5.11 per cent.

PTTCH closed at 135.00 baht, up 7.00 baht or 5.47 per cent.

TRUE closed at 5.10 baht, down 0.05 baht or 0.97 per cent.

In Manila, The Philippine Stock Exchange index shed 12.78 points or 0.31 percent to finish at 4,111.05.

All counters succumbed to profit-taking except for the mining sector, which managed to eke out slim gains led by Lepanto Consolidated Mining Co. “A” and Philex Mining Corp.

Value turnover amounted to P5.2 billion. Foreign investors were still in net buying position to the tune of P226 million. Dealers said foreign players were still on the lookout for good buys among local equities.

There were 61 advancers against 79 decliners, while 44 stocks were unchanged.

Investors locked up gains from Energy Development Corp., Metropolitan Bank & Trust Co., Philippine Long Distance Telephone Co., Alliance Global Group Inc., Megaworld Corp., Aboitiz Power Corp., SM Investments Corp., Globe Telecom Inc., Semirara Mining Corp. and Banco de Oro Unibank.

The local stock market, which is now trading at record levels, has seen a 35-percent rise in its main index since the start of this year. The Jakarta Composite Index gained 22.75 points, or 0.6 percent, to close at a record high of 3,495.46. Volume was heavy, with 7.4 billion shares worth Rp 6 trillion ($672 million) changing hands. Gainers beat losers 139 to 90.

Medco Energi Internasional, the country’s biggest listed oil company, surged 6.4 percent higher to Rp 3,300, its steepest gain since Aug. 6.

State oil and gas company Pertamina plans to acquire Medco through a stake in its parent company, Encore Energy, Ferederick Siahaan, a director at Pertamina, said on Wednesday.

Bank Mandiri, the nation’s largest bank by assets, rose 3.7 percent to Rp 7,000, advancing for a fifth day. Tambang Batubara Bukit Asam was looking to obtain a Rp 2 trillion loan from Mandiri, Sukrisno, Bukit Asam’s president director, said on Wednesday.

Timah, the country’s largest tin-mining company, gained 2.7 percent to Rp 2,850.

Tin for three-month delivery advanced 1.5 percent to $24,000 a metric ton in London on Tuesday, the highest close since May 27, 2008. The contract was at $24,100 a ton in after-hours trading in London.

A sharp run-up in share prices has left Southeast Asian valuations among the highest in Asia but has also prompted some caution lately, with expectations growing that economic activity in the region is starting to decelerate.

“The global slowdown should hit Asia’s small, open economies the hardest,” Standard Chartered Bank has said.

“We expect the global slowdown to have the largest impact on export-driven economies such as Singapore, Thailand, Taiwan and Malaysia.”

The rupiah and bonds rose for a fourth day on speculation overseas investors would increase their holdings of the nation’s assets as growth gathers pace in Southeast Asia’s largest economy.

Funds based abroad have bought $645 million more Indonesian shares than they sold so far this month, boosting this year’s net purchases to $2.3 billion, according to the Indonesia Stock Exchange (IDX).

The economy expanded 6.2 percent in the second quarter from a year earlier, the fastest pace since September 2008.

“As long as the trend in the region is for currencies to appreciate, the rupiah will strengthen,” said Gundy Cahyadi, an economist at Oversea-Chinese Banking Corp in Singapore.

The rupiah gained 0.2 percent to 8,932 per dollar as of 3:19 p.m. in Jakarta. The currency reached 8,905 on Aug. 3, its strongest level since June 2007, and has so far this year advanced 5.2 percent.

However, Iwan Ridwan Gunandar, a foreign-exchange trader at CIMB Bank Niaga in Jakarta, said the strong gains could be limited if the central bank decided to intervene to curb volatility.

Bank Indonesia governor Darmin Nasution on Wednesday said he remained “confident” with a benchmark interest rate of 6.5 percent.



 


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