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ASEAN STOCK WATCH Asean Affairs   22 September  2011

Asean Stock Watch- September 22



U.S. stocks closed sharply lower after the Federal Reserve announced it would launch a new US$400 billion program to rebalance its $2.87 trillion portfolio by selling shorter-term notes and using those funds to purchase longer-dated Treasurys.

The Dow Jones Industrial Average ended 283.82 points, or 2.49 percent lower at 11,124.84,

The S&P 500 dropped 35.33 points, or 2.94 percent at 1,166.76.Nasdaq fell 52.05 points, or 2.01 percent, to end at 2,538.19.


Concerns over Europe’s debt crisis continued to weigh on sentiment in Indonesia’s stock market on Wednesday.

The Jakarta Composite Index lost 54.62 points, or 1.5 percent, to close at 3,697.49, extending a two-day 2.2 percent decline. More than 3.84 billion shares worth Rp 3.51 trillion ($396.6 million) were traded on the Indonesia Stock Exchange.

Decliners beat gainers 179 to 42. Foreign investors, who make up about two-thirds of the market’s trade, sold Rp 585 billion more in shares than they bought.

Bagus Hananto, head researcher at Onix Capital in Jakarta, said foreign investors were still selling to lock in profits as a potential Greek default continued to roil global financial markets.

Even the anticipation of additional stimulus by the US Federal Reserve later in the day failed to boost sentiment in Indonesia on Wednesday. “Even when there is positive news from the Fed, it will only have a very short effect, as the main focus is still on Europe,” Bagus said.

Meanwhile, the International Monetary Fund said on Wednesday that it had forecast Indonesia’s economic growth this year at 6.3 percent, lower than the government’s target of 6.5 percent.

Bagus said the Indonesian market had been unpredictable for the last two weeks and warned that this volatility was likely to continue.

The biggest loser on the day was Multibreeder Adirama Indonesia, a poultry producer. It lost 20 percent to close at Rp 24,000 after reporting first-half profit tumbled 81 percent to Rp 11.8 billion from a year earlier as expenses climbed. Japfa, a food manufacturer and parent company of Multibreeder, fell 4.1 percent to Rp 4,725.

United Tractors, Indonesia’s largest listed distributor of large machinery, declined 3.7 percent to Rp 22,150. It sold 589 units of Komatsu heavy equipment in August, down 19 percent from July

The rupiah gained 1.2 percent to trade at 8,875 to the dollar.

The benchmark 10-year bond yielded 7.23 percent on Wednesday, compared to 7.30 percent the previous day.


Share prices on Bursa Malaysia ended the Wednesday higher, boosted by buying support from institutional fund managers in selected heavyweights, amid rising fears over the weakening global economy, dealers said.

Sime Darby, the highest contributor to the FTSE Bursa Malaysia KLCI (FBM KLCI) today, push the benchmark index up 8.4 points to end at 1,419.04.

The market barometer, which opened 2.81 points higher at 1,413.45, moved between 1,408.73 and 1,422.35 points, throughout the day.

Turning to developments abroad, all eyes are now on the US Federal Open Market Committee meeting, scheduled later today, which is expected to further ease monetary measures to address its anemic economic growth.

UOB Economic Treasury Report said a third quantitative easing was not probably on the cards now but expectations were for the US Federal Reserve to embark on a twist operation of purchasing longer-dated US Treasuries and to sell an amount of shorter-dated Treasuries.

Besides, UOB also said the Greek Cabinet was also scheduled to meet later today and announce more austerity measures and front-loading of existing measures.

On local front, the Finance Index improved 24.021 points to 13,189.65, the Plantation Index increased 24.23 points to 7,269.59 and the Industrial Index rose 23.2 points to 2,614.88.

The FBM Emas Index advanced 49.601 points to 9,633.45, the FBM70 Index was up 39.57 points at 10,239.21, the FBMT100 jumped 51.931 points to 9,465.44 and the FBM Ace went up 16.63 points to 3,707.35.

Advancers led decliners 350 to 289 while 287 counters were unchanged, 558 untraded and 25 others were suspended.

Total market volume declined to 708.059 million shares, worth RM1.156 billion, from Tuesday's 784.626 million units valued at RM1.418 billion.

Volume on the Main Market declined to 479.541 million shares, worth RM1.124 billion, from yesterday's 594.128 million shares valued at RM1.392 billion.

Turnover on the ACE market, however, rose to 174.252 million units, valued at RM25.669 million, from 137.465 million units, worth RM19.462 million, registered previously.

Warrants also improved to 48.636 million shares, valued at RM3.013 million, from Tuesday's 48.225 million shares worth RM3.134 million.

Sime Darby led the gainers list finishing 33 sen to RM8.24 followed by Malayan Flour Mills which rose 30 sen to RM6.98 and IJM Corporation added 20 sen to RM5.19.

Actives, Systech shed 3.5 sen to 16.5 sen followed by The Media Shoppe, which edged half-a-sen to 7.5 sen but Malaysian Resources gained two sen to RM1.81.

As for heavyweights, Maybank was unchanged at RM8.55, CIMB added five sen to RM6.89, Sime Darby gained 33 sen to RM8.24 and Petronas Chemicals edged three sen to RM5.81.

Consumer products accounted for 30.825 million shares traded on the Main Market, industrial products 79.057 million, construction 47.947 million, trade and services 155.452 million, technology 23.03 million, infrastructure 14.263 million, finance 39.373 million, hotels 350,700, properties 65.734 million, plantation 18.973 million, mining nil, REITs 3.706 million and closed/fund 27,900.


PHILIPPINE share prices tumbled while the peso drifted lower on Wednesday ahead of the results of a key US Federal Reserve meeting.

At the Philippine Stock Exchange, the composite index lost 15.53 points, or 0.37 percent to 4,204.29, while the broader all-shares index dropped 12.56 points, or 0.42 percent to 2,976.80.

Decliners led advancers, 80 to 58, while 45 stocks were unchanged. A total of 13.67 billion stocks worth P3.49 billion changed hands.

“Taking its cue from big gains in Europe and a flat close in the US, the PSE index opened with a tentative five-point rise to as much as 33 points to test the 4,250 interim resistance before profit-taking set in to take the measure even lower than the prior session’s close,” said Jun Calaycay of Accord Capital Equities Corp.

Twelve of the 20 most active issues posted higher prices, but profit taking in index heavyweights Philippine Long Distance Telephone Co., SM Investments Corp., Energy Development Corp., Alliance Global Group Inc. and Banco De Oro Unibank Inc. dragged the main index lower.

Calaycay added that the International Monetary Fund also gave “authoritative voice to the cacophony of lower global growth outlook,” denting investor confidence further.

Overnight, the Dow Jones Industrial Average inched up 7.65 points, or 0.07 percent to 11,408.66 in lethargic trading as traders stayed on the sidelines awaiting the Fed’s move to boost the sluggish US economy and European policymaker’s measures to avoid a potential Greek default.

In Asia, stocks finished mostly higher after economic indicators suggested that China would overcome the global slowdown.

“Thus far, liquidity might stay pale in regional equities for now, until clear guidelines are made how industrialized leaders will coordinate both fiscal and monetary policies to resolve the burgeoning debt problem,” said Freya Natividad, investment analyst at

Asian currencies continued to lose traction against the dollar as investors remained jittery amid fears of lingering debt woes in Europe and an anemic US economy.

At the Philippine Dealing System, the peso shed 7 centavos to close at 43.530 against the greenback from Tuesday’s 43.460 finish.

The dollar-peso pair opened at 43.530, with bids fetching a high of 43.550 and a low of 43.390 before closing at its opening rate.

Total trading volume eased to $1.2 billion from $1.567 billion the previous trading day.

Analysts said the central bank’s plan to issue stricter rules on hedging instruments, particularly on non-deliverable forwards, may lead to biddish sentiment for the dollar-peso pair this week.

With offshore prices indicating a premium over onshore spot, players may be more eager to unwind existing positions driving demand for the greenback, an analyst from the Metrobank said in a commentary.

“Additional support for the currency pair will be taken from huge fix related demand this week stalling any bullish sentiment for the peso for the meantime. The unrelenting Euro zone debt crisis may keep players from being overly optimistic over the local currency as well adding more bias skewed to the right,” said Marc Bautista, Metrobank head of research.

The dollar-peso currency pair is expected to trade within the 42.900 to 43.600 range this week, with the Bangko Sentral ng Pilipinas present to smoothen volatility.


Singapore shares opened lower on Thursday, with the benchmark Straits Times Index at 2,753.02 in early trade, down 1.39 percent, or 38.77 points.

Around 94.7 million shares exchanged hands.

Losers beat gainers 160 to 10.


The Stock Exchange of Thailand main index went up 3.31 points or 0.32 percent to close at 1,029.59 points at the end of trading session on Wednesday. The trade value was 17.46 billion baht, with 2.02 billion shares traded.

The SET50 index ended at 717.08 points, up 2.38 points or 0.33 percent, with a total trade value of 13.60 billion baht.

The SET100 index rose 5.19 points or 0.33 percent to stand at 1,560.74 points, with a total turnover of 15.52 billion baht.

The SETHD index went up 6.17 points or 0.62 percent to stand at 1.001.03 points, with total trade value of 5.05 billion baht.

The MAI index rose 0.79 points or 0.28 percent to close at 285.29 points, with total transaction value of 408.88 billion baht.

Top five most active values were as follows;

ADVANC closed at 126.50 baht, up 2.50 baht (2.02 percent)

SCC closed at 306.00 baht, up 2.00 baht (0.66 percent)

DTAC closed at 77.00 baht, up 1.50 baht (1.99 percent)

KBANK closed at 123.40 baht, up 1.00 baht (0.82 percent)

PTTCH closed at 119.50 baht, down 0.50 baht (0.42 percent)


Shares continued to tumble Wednesday on the HCM City Stock Exchange, weighed down by stumbling blue chips, but stocks on the Hanoi bourses rallied as investors made bargain buys in a bet on easing inflation in September.

The low monthly rise in September inflation in Hanoi continued to support the likelihood of stable inflation towards the end of the year, thus supporting the central bank's goal of reducing interest rates, BIDV Securities Co's stock analysts wrote in a report.

"However, CPI (consumer price index) is a link of the problem chain in the medium term, and though the monthly CPI increase has extrapolative impacts on the future, it does not provide certainty. Every assumption implies expectations," they wrote.

Investors believed it was feasible for the central bank to bring down deposit interest rates to 14 percent per year, but their expectations were already reflected in the recent rises. The stock market was under pressure of a correction after a long rise, and it now needed more supporting information to extend the rally, those analysts said.

On the HCM Stock Exchange, the VN-Index lost another 1.5 percent to close yesterday's session at 447.57 points. Value of the day's trades declined nearly 8 percent over Tuesday to nearly VND819 billion (US$39.4 million), on a total volume of nearly 44 million shares.

Insurer Bao Viet Holdings (BVH) and food producer Masan Group (MSN) continued to fall to the floor price yesterday, while steelmaker Hoa Phat Group (HPG) and property developers Vincom (VIC) and Hoang Anh Gia Lai (HAG) all dropped by nearly 2 percent.

Some, which included software producer FPT (FPT), Eximbank (EIB), dairy producer Vinamilk (VNM), rose slightly, helping cushion the Index fall.

However, decliners over-whelmed advancers by 134-81 overall.

Becamex Infrastructure Development (IJC) and SACOM Development and Investment (SAM) were the two most active stocks yesterday, each with over 2.2 million shares traded. Both hit their ceiling price.

On the Ha Noi Stock Exchange, the HNX-Index gained 0.3 percent, finishing at 74.6 points. The market value declined slightly to nearly VND475 billion ($22.8 million) as 43 million shares changed hands.

Kim Long Securities Co (KLS) yesterday was again the most heavily traded stock nationwide with 4.43 million shares exchanged, closing unchanged at VND12,400 ($0.60) a share.

Foreign investors became net sellers on both exchanges yesterday, picking up a combined VND6.8 billion ($327,000) worth of shares.



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