ASEAN KEY DESTINATIONS
Asean Stock Watch- September 7
US stocks plummeted on Tuesday in opening trade as investors returned from a long holiday weekend worried about European debt problems and the health of the US economy.
Extending Friday's sharp losses, the Dow Jones Industrial Average slumped 224.63 points (2.00 percent) to 11,015.63 in the first minute of trade. The S&P 500-stock index, a broader measure of the markets, slid 24.49 points (2.09 percent) to 1,149.48, while the tech-rich Nasdaq Composite tumbled 59.64 points (2.40 percent) to 2,420.69.
The main Indonesia stock index rose for a second day on the back of positive sentiment from European markets after the Switzerland’s central bank pegged the franc to the euro, as a sign of vigilance to maintain financial discipline.
Shares also rose on optimism that Indonesia will fast-track government spending, which would help to lift economic growth.
The Jakarta Composite Index rose 23.79 points, or 0.6 percent, to close at 3,889.97, extending yesterday’s gain at the same rate. More than 4.16 billion shares worth Rp 5.02 trillion ($587 million) were traded. Gainers outnumbered decliners by 126 to 76. Foreign investors sold Rp 402 billion more in shares than they bought.
On Tuesday, the Swiss National Bank set a minimum exchange rate of 1.20 francs to euros, in a move to lower the volume of foreign exchange trading and limit speculative buying.
Indonesia’s cabinet met on Tuesday to discuss government budget spending.
Hatta Rajasa, the coordinating minister for the economy, said that President Susilo Bambang Yudhoyono had ordered the evaluation and close supervision among ministries to eliminate the problem of slow budget disbursement.
“The index was pushed up in the second session by European markets,” said Abidan Saragih, analyst at Pacific 2000. “Budget disbursement has been pretty slow so far, and usually the government pushes spending in the fourth. It can help economic growth, and that can boost market confidence.”
On the Indonesia Stock Exchange (IDX) among sectors, mining led with a 1.5 percent gain, followed by the consumer sector, up 1 percent.
Indo Tambangraya Megah, the coal-mining unit of Banpu of Thailand, climbed 4 percent to Rp 44,250. On Oct. 14, the company will pay an interim dividend of Rp 1,168 per share to stockholders of record as of Sept. 29. Kim Eng Securities recommended a ‘buy on the counter’ for the stock with a target price at Rp 57,200, it said in a note on Tuesday.
Other coal miners also gained in sympathy. Bumi Resources, the largest listed coal producer, gained 2 percent to Rp 2,575. Harum Energy was up 7.2 percent to Rp 8,150.
Hero Supermarket rose 3.5 percent to Rp 8,800. Mitra Adiperkasa, a lifestyle retailer that holds the franchising rights for Starbucks and Zara, jumped 5.4 percent to Rp 4,425. Analysts had been recommending retail and consumer-related stocks with domestic market orientation to minimize global market volatility.
Jasa Marga, a state-controlled toll-road operator, added 3.1 percent to Rp 4,225, amid expectations that profit would increase as it prepared to raise toll-road tariffs by Sept. 28.
The rupiah traded 0.2 percent weaker against the dollar at 8,548 on Tuesday.
It had fallen to as low as 8,570 in early trading, but edged up after the SNB announcement.
The Bursa Malaysia’s benchmark index was down 0.60 percent to 1,454.37 at close largely due to selective selling of blue chip stocks.
Losers outpaced gainers 423 to 253 while 279 other counters were traded unchanged. There were 706.60 million shares traded with a total turnover of RM1.51 billion.
Among the top losers were IOI, shedding 14 sen to RM4.56, Sime, down 13 sen to RM8.70 and CIMB, 10 sen lower to RM7.30.
Maybank was 5 sen lower at RM8.68, TNB dropped 6 sen to RM5.10 and Public Bank lost 4 sen to RM13.
DXN rose 31 sen to RM1.70 after the company received a conditional take-over offer yesterday while Bandar Raya Developments gained 13 sen to RM2.45 after the company announced major shareholder Ambang Sehati proposed to acquire several of the developer's assets.
BAT fell 24 sen to RM43.50 and JTI was 15 sen lower at RM6.60.
Petronas Chemicals was down 3 sen to RM6.30, Petronas Dagangan lost 16 sen to RM17.60 and Petronas Gas fell 16 sen to RM13.10.
Parkson shed 20 sen to RM5.45, Yong Tai tumbled 18 sen to 35 sen and Proton fell 21 sen to RM2.70.
Axiata was up 6 sen to RM4.71 and TM was 6 sen lower at RM4.32.
The ringgit was quoted at 2.982 to the US dollar and 4.231 to the euro
Philippines share prices on Tuesday ignored the slower rise in inflation and crumbled under the weight of European debt woes and slowing US economic growth.
At the Philippine Stock Exchange, the composite index fell 79.48 points, or 1.81 percent to 4,303.08, just a few points off its support level of 4,300.
The broader all-shares index tumbled 43.08 points, or 1.4 percent to 3,028.85 with all sub-indices finishing in the red, led by the financial and mining and oil counters, which fell 2.57 percent and 2.25 percent, respectively.
Decliners dominated advancers, 122 to 21, while 26 stocks were unchanged. A total of 8.21 billion stocks worth P5.27 billion changed hands.
“An expected slower rise in August consumer prices failed to lift the market,” said Jun Calaycay of Accord Capital Equities Corp.
The government announced that inflation slowed to 4.7 percent last month from 5.1 percent in July.
“Instead, investors opted to discount a deteriorating outlook for European banks amid the region’s struggle against correcting and containing its member-economies’ debt position,” Calaycay said.
“Any time these types of events occur, it sends a negative signal concerning the whole Euro zone. With risk aversion high nowadays, investors worldwide are easily spooked, which leads to selling,” said Prince Anthony Yeung of AB Capital Securities Services Inc.
US futures fell suggesting a weak start when trading in Wall Street resumes following a Labor Day holiday.
“While the main index is currently at a support level, expect downward pressure to be high tomorrow. The twin problems of the US and the euro zone can push the local stock market to another decline,” said Yeung.
“Alternatively, as the measure enters a support range, we can expect bargain-hunting to start re-emerging as a common theme,” Calaycay said, adding that the PSEi has run out of catalysts to push it pass the 4,400 line despite its resiliency in the previous weeks.
Fears of Europe’s worsening debt crisis as well as of a slowing US economy cut demand for emerging market assets, sending Asian currencies lower.
At the Philippine Dealing System, the peso shed 10 centavos to close at 42.285 against the US dollar from Monday’s 42.185 finish.
The dollar-peso currency pair opened at 42.250 with bids ranging from a high of 42.310 and a low of 42.250.
Total trading volume eased to $740.28 million from $823.5 million the previous trading day.
The dollar-peso currency pair is expected to trade at the 42 to 42.70 range within the week.
Singapore shares closed higher on Tuesday, with the benchmark Straits Times Index at 2,774.33, up 0.04 percent, or 1.16 points.
About 1.3 billion shares exchanged hands.
Losers beat gainers 238 to 210.
The Stock Exchange of Thailand main index went up 6.37 points or 0.61 percent to close at 1,055.60 points at the end of trading session on Tuesday Afternoon. The trade value was 22.43 billion baht, with 3.20 billion shares traded.
The SET50 index ended at 734.49 points, up 4.80 points or 0.66 percent, with a total trade value of 16.79 billion baht.
The SET100 index rose 9.97 points or 0.63 percent to stand at 1,601.29 points, with a total turnover of 18.93 billion baht.
The SETHD index went up 3.31 points or 0.33 percent to stand at 1,018.96 points, with total trade value of 5.58 billion baht.
The MAI index went down 0.70 points or 0.24 percent to close at 296.55 points, with total transaction value of 557.40 million baht.
Top five most active values were as follows;
PTT (XD) closed at 319.00 baht, down 5.00 baht (1.54 percent)
TRUE closed at 4.16 baht, up 0.20 baht (5.05 percent)
BANPU closed at 620.00 baht, down 4.00 baht (0.64 percent)
ADVANC closed at 119.00 baht, up 4.00 baht (3.48 percent)
SCC closed at 323.00 baht, up 2.00 baht (0.62 percent)
The strong increase among several blue chips again helped the VN-Index gain another 0.1 percent to close this Tuesday's session at 436.16 on the HCM Stock Exchange, after plunging to 431 points.
While other major stocks lost value, both insurer Bao Viet Holdings (BVH) and food producer Masan Group (MSN) managed to hit their ceilings of nearly 5 percent for two days in a row. Phu My Fertiliser (DPM) also rose another 1.9 percent while dairy producer Vinamilk (VNM) was up 0.8 percent.
Decliners tripled advancers, however.
The value of today's trades fell 13 percent over yesterday to nearly VND708 billion (US$33.9 million) while trading volume decreased 21 percent to just 41.5 million shares.
Saigon Securities Inc (SSI) was still the most active stock with over 3.5 million shares changing hands, despite losing another 1 percent to VND20,100 ($0.97).
In Ha Noi, the HNX-Index fell another 1.78 percent over yesterday to close on 73.77 points today. Market value was down 35 percent to VND534.8 billion ($25.7 million) with only 51 million shares changing hands.
Losers outnumbered gainers by four-to-one.
Though Kim Long Securities (KLS) was still the most heavily traded stock nationwide with 6.43 million shares changing hands, it closed down 2.4 percent to VND12,200 per share ($0.60).
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