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ASEAN STOCK WATCH Asean Affairs   12 September  2011

Asean Stock Watch- September 12



U.S. stocks fell Friday and the euro dropped to a seven-month low on fresh worries about Europe and as investors expressed trepidation that Congress may not pass President Obama's $447 billion jobs plan.

The Dow Jones Industrial Average lost 146 points, or 1.3 percent, to 11149 in morning trade. The blue-chip Dow's declines come after the index fell 119 points in the previous session. It has dropped four out of the last five trading days.

The Standard & Poor's 500-stock index shed 13 points, or 1.1 percent, to 1173, led lower by utility and health care stocks. All 10 of the S&P 500's sectors fell. The technology-heavy Nasdaq Composite dropped 17 points, or 0.7 percent, to 2512.

The action comes after Obama called on Congress Thursday night to pass a $447 billion package that included tax cuts and spending initiatives to help boost economic growth. The package was slightly larger than Wall Street investors had anticipated.

"People are digesting the president's plan and the possibility of it actually being passed," said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management. "The big question is whether the plan laid out last night will be a bipartisan solution or whether we'll see more political gridlock."

McDonald's led blue-chip stocks lower, dropping 4.1 percent, after the fast-food company's same-store sales results last month disappointed investors.

Bank of America dropped 0.8 percent. The bank's executives have mulled cutting roughly 40,000 jobs during the first wave of restructuring that is expected to be discussed on Monday.


Indonesia's benchmark stock slipped slightly on Friday, failing to maintain its climb for a fifth day amid lingering concern over the pace of the global economic recovery.

The Jakarta Composite Index lost 6.89 points, or 0.2 percent, to close at 3,998.50, halting a four-day, 4.3 percent decline. About 3.91 billion shares traded, valued at Rp 3.32 trillion ($3.4 million).

Activity was slow, as indicated by a lower volume of trading than the 5.3 billion average daily volume in September, which had an average value at Rp 5.8 trillion. About the same number of stocks advanced and declined, at 103 to 105.

“It’s almost the weekend and investors did not want to have a position in the market, especially when the market is still very uncertain,” said Deni Hamzah, an analyst with Corfina Capital. “The concern over the global economy will continue, and so will regional market volatility.”

He said that US President Barack Obama’s speech on Thursday had no significant impact on Indonesia’s market. Obama set out a $447 billion stimulus plan to create jobs in the United States as part of an economic recovery effort.

Over the week Asian markets had been volatile, swinging between losses and gains on a daily basis. Hong Kong’s Hang Seng Index lost 1.7 percent for the week, the Nikkei 225 average in Japan shed 2.3 percent, and South Korean Kospi fell 2.9 percent.

Indonesia’s consumer sector was among the biggest gainers on Friday, up 1 percent, as investors anticipate that companies will benefit in the form of profitability for the third quarter during the Lebaran season in August.

Bentoel International Investama, Indonesia’s fourth-largest cigarette maker, surged 8.5 percent to Rp 890.

Trimegah Securities recommended the stock “due to its cheap valuation, good management and improving earnings”, the company said in a note sent to the Jakarta Globe.

Hexindo Adiperkasa, the second-largest listed heavy equipment distributor, rose 0.6 percent to Rp 8,350 as the company said it was intensifying its sales effort in Sulawesi, Maluku and Papua. It targeted a 29 percent increase in sales to $644 million by March 2012 from the same period in 2011.

Indosat, the country’s second-largest telecommunication company, lost 1.7 percent to Rp 5,700, and rival XL Axiata fell 4.5 percent to Rp 5,350. The stocks were affected by profit-taking after gaining 10.5 percent and 10.9 percent, respectively, from the start of the week to Thursday.

Timah, a state-controlled tin producer, lost 2.2 percent to close at Rp 2,275 due to concerns that global economic growth might hurt global tin consumption, Investor Daily reported on Friday.

The rupiah lost 0.05 percent to 8,565 against the dollar.

“The central bank is closely guarding the exchange, so it’s not going anywhere,” Deni said, adding that in the past two weeks, the rupiah was trading at a range of 8,475 to 8,575


The FBM KLCI finished Friday trading down 0.05 percent to 1,469.12.

A total of 739 million shares were transacted valued at RM977mil After posting a cumulative increase of 15.5-point or 1.1% over the past two days, we reckon the benchmark FBM KLCI will probably move sideways with a marginal negative bias ahead, Hwang DBS told clients in its morning note today.

The first support level is currently seen at 1,465, it said. The local manufacturing sector in July expanded 10.8 percent (year-on-year) to RM50.4 billion.


Philippine share prices ended last week down after the US Federal Reserve gave no indications that it would implement measures to prop up its sluggish economy.

At the Philippine Stock Exchange, the composite index lost 10.66 points, or 0.24 percent to 4,346.07, while the broader all-shares index added 1.59 points, or 0.05 percent to 3,063.34.

Advancers led decliners, 75 to 54. A total of 6.896 billion stocks worth P4.15 billion changed hands.

“A dent on local sentiments was due to [Federal Reserve Chairman Ben] Bernanke’s lack of detailed agenda for stimulus boost which also prompted Wall Street’s retreat,” said Freya Natividad, investment analyst at

Asian stocks closed mostly lower, tracking the weakness in the Dow Jones Industrial Average, which dropped 119.05 points, or 1.04 percent to 11,295.81.

Investors also booked profits on stocks that made their run-up in the previous days, Natividad added.

In the latest edition of The Market Call, First Metro Investments Corp. (FMIC) said it expects market volatility to be prevalent in the near-term.

“The Philippine equities market may not escape unresolved negative risk events from external sources,” FMIC said.

“Moreover, we think foreign investors are likely to continue taking the Philippine equities’ resiliency as a chance to further reduce exposure given the emotionally driven investing backdrop globally,” it added.

FMIC warned that it is “increasingly nervous” looking ahead after local economic growth eased to 3.4 percent in the second quarter.

Asian currencies fell Friday amid concerns of faltering US recovery and Europe’s debt crisis, fueling risk aversion for emerging markets assets.

At the Philippine Dealing System, the peso moved sideways to close at 42.490 against the US dollar, down 2 centavos from 42.47 the previous trading day.

The dollar-peso pair opened at 42.550 and fetched a high of 42.550 and a low of 42.460.

Total trading volume eased to $752.810 million from $1.098 billion the previous trading day.


Singapore shares closed lower on Friday, with the benchmark Straits Times Index at 2,825.1, down 1.11 percent, or 31.8 points.

About 1.3 billion shares exchanged hands.

Losers beat gainers 267 to 183.


The Stock Exchange of Thailand main index went down 9.84 points or 0.92 percent to close at 1,062.37 points at the end of trading session on Friday. The trade value was 23.57 billion baht, with 6.63 billion shares traded.

The SET50 index ended at 739.73 points, down 7.33 points or 0.98 percent, with a total trade value of 14.53 billion baht.

The SET100 index fell 15.70 points or 0.96 percent to stand at 1,613.11 points, with a total turnover of 17.32 billion baht.

The SETHD index went down 8.01 points or 0.78 percent to stand at 1,023.99 points, with total trade value of 4.18 billion baht.

The MAI index dropped 2.47 points or 0.82 percent to close at 298.14 points, with total transaction value of 418.41 million baht.

Top five most active values were as follows;

PAO closed at 0.73 baht, up 0.23 baht (46.00 percent)

BANPU closed at 634.00 baht, down 10.00 baht (1.55 percent)

IVL closed at 38.00 baht, unchanged

TMB closed at 1.79 baht, up 0.08 baht (4.68 percent)

PTT (XD) closed at 321.00 baht, down 5.00 baht (1.53 percent)


Shares continued their rise on the HCM Stock Exchange Friday, with advancers outnumbering decliners by 140-83. The VN-Index gained another 1.47 percent to finish today's session at 459.92 points.

Large-cap stocks again upheld the Index rise, as eight of the 10 largest shares led by market capitalisation posted gains this morning.

Food producer Masan Group (MSN) hit the daily limit of 5 percent; property developer Vincom (VIC) closed up 3.4 percent; and others including insurer Bao Viet Holdings (BVH), Phu My Fertiliser (DPM) and Hoa Phat Group were up over 1 percent.

Blue chip Becamex Infrastructure Development (IJC) with 1.7 million shares changing hands became the most active share in the southern bourse. IJC also climbed 3.8 per cent to VND8,800.

Market value totaled more than VND715.8 billion (US$34.4 million) as over 47.2 million shares were exchanged.

On the Ha Noi Stock Exchange, the HNX-Index declined 0.21 percent to close at 76.78 points. Today's trades remained at a high level with 60.2 million shares worth nearly VND715.5 billion ($19.7 million) changing hands.

Losers inched up gainers by just 137-131.

Kim Long Securities (KLS) continued to be the most heavily-traded stock nationwide with 6.55 million shares traded, though it fell 2.2 percent to close at VND13,300 ($0.64).



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