ASEAN KEY DESTINATIONS
Asean Stock Watch- September 9
Overnight, the Dow Jones Industrial Average gained 275.56 points, or 2.47 percent to 11,414.86 after Germany’s top court ruled in favor of Berlin’s involvement in European bailouts that could alleviate the region’s debt crisis.
With lenders boosted by news out of the central bank, the Jakarta Composite Index rose for a fourth straight day on Thursday and closed at a two-week high.
The JCI gained 3.96 points, or 0.1 percent, to close at 4,005.39, bringing its gain this week to 4.3 percent. More than 10.31 billion shares worth Rp 5.82 trillion ($681) were traded.
Decliners beat gainers by 122 to 100. Foreign investors were net buyers at Rp 545 billion.
While Bank Indonesia kept its key interest rate steady at 6.75 percent at Thursday’s monthly policy meeting, it lowered its interbank lending rate (Fasbi) to 5.25 percent from 5.75 percent, potentially adding liquidity to the financial system.
“The market sees the central bank loosening its policy in banking,” said Mastono Ali, a market analyst at CIMB Securities Indonesia. “Banks can use some of their idle money for something more productive.”
Led by shares of banks, the finance sector was up 0.8 percent on Thursday. Bank Mandiri, the nation’s largest lender by assets, rose 1.4 percent to Rp 7,200, while Bank Rakyat Indonesia gained 1.5 percent to Rp 6,950.
Mastono said the market was starting to factor in better third-quarter profits because of holiday spending.
“Investors expect to see good performance in the third quarter because of the Lebaran festivities, especially in consumer-based companies,” he said.
Consumer goods stocks appeared to bear that out, with the sector gaining 1 percent.
Instant noodle maker Indofood CBP jumped 6 percent to Rp 5,300. Matahari Putra Prima, a department store and supermarket operator, added 1.8 percent to Rp 1,140.
Matahari Putra Prima and the Jakarta Globe are affiliated with the Lippo Group.
Among the mining and industrial shares that fell on Thursday, coal miner Indo Tambangraya lost 1.4 percent to Rp 46,000, trimming a three-day, 8 percent advance. Timah, the largest tin miner in the country, fell 1.1 percent to Rp 2,325, halting a three-day, 5.6 percent gain.
The rupiah strengthened 0.15 percent to 8,561 against the US dollar on Thursday.
Share prices ended higher Thursday on Bursa Malaysia boosted by gains in selected heavyweights and improved risk appetite following Prime Minister Datuk Seri Najib Tun Razak's seventh update of the Economic Transformation Programme, dealers said.
The benchmark FBM KLCI, which went through a see-saw movement in early trade, bounced back mid-day and finished 5.22 points better at 1,469.83.
The Prime Minister announced eight new investment projects worth RM1.4 billion that will involve various sectors such as agriculture, education, aerospace, wholesale, retail and manufacturing.
Affin Investment Bank Head of Retail Dr Nazri Khan said markets were broadly eyeing important speeches to be made by both US President Barack Obama and Federal Reserve Chairman Ben Bernanke, a policy meeting of the European Central Bank and the Group of Seven nations.
"Investors were still cautious about the global economic outlook and awaited positive news to serve as market catalyst," he said, adding that any hint of more easing by Bernanke could hurt the market.
Back home, local players were confident Bank Negara Malaysia would maintain the Overnight Policy Rate at 3.00 percent.
"The positive movement of share prices was also prompted by a positive set of export data recorded for July, which indicated growth for Malaysia despite the global economic uncertainty" said another dealer.
Bursa Malaysia's Plantation Index added 65.37 points to 7,398.66, the Industrial Index rose 5.74 points to 2,711.090 and the Finance Index gained 16.92 points to 13,721.43.
The FBM Emas Index was up 33.25 points to 10,036.64, the FBM Mid 70 Index earned 36.22 points to 10,868.12 and the FBM Ace Index added 10.98 points to 3,788.79.
Gainers thumped losers 415 to 265 while 284 counters were unchanged.
A total of 812.87 million shares, worth RM1.143 billion, changed hands compared with 650.39 million shares, worth RM1.253 billion, recorded yesterday.
Among active counters, Malton added nine sen to 58.5 sen, Systech added 1.5 sen to 34 sen, AirAsia rose two sen to RM3.41 but Eastern & Oriental lost three sen to RM1.68.
For heavyweights, Maybank and CIMB earned two sen each to RM8.69 and RM7.18, respectively, Petronas Chemicals added six sen to RM6.38 and Sime Darby rose three sen to RM8.74.
The Main Market volume increased to 573.52 million shares, worth RM1.108 billion, from 525.504 million shares, worth RM1.233 billion, registered yesterday.
Turnover on the ACE Market was up at 192.13 million shares, valued at RM24.46 million, from 78.23 million shares, valued at RM13.42 million, registered on Wednesday.
Warrants fell to 41.423 million units, worth RM4.24 million, from 44.28 million units, worth RM4.34 million, transacted previously.
Consumer products accounted for 29.614 million shares traded on the Main Market, industrial products 83.94 million, construction 24.14 million, trade and services 184.456 million, technology 9.856 million, infrastructure 13.07 million, finance 44.74 million, hotels 476,400, properties 155.078 million, plantations 22.97 million, mining 7,000, REITs 2.37 million and closed/fund 28,000.
Philippine share prices on Thursday closed higher for the second straight session, drawing inspiration from the rally in Wall Street on easing European debt woes.
At the Philippine Stock Exchange, the composite index rose by 41.52 points, or 0.96 percent to 4,356.73, while the broader all-shares index added 20.27 points, or 0.67 percent to 3,061.75.
Advancers led decliners, 95 to 47, while 40 stocks were unchanged. A total of 3.40 billion stocks worth P4.10 billion changed hands.
“The session was moved by Wall Street’s overnight improvements. These prodded players to position on expectations stimulus measures would be widely supported by authorities in industrialized countries,” said Freya Natividad, investment analyst at 2TradeAsia.com.
Global markets are expected to remain sensitive to day-to-day developments, knee-jerking both ways with a stronger bias for the negatives, said Jun Calaycay of Accord Capital Equities Corp.
“On a brighter note, the market’s ability to hold support levels, discounting brief breaches therefore, increases bargain-hunters’ confidence that present valuations are promising moving forward,” Calaycay added.
The main index is seen to trade at a range of 3,300 to 3,400 until more clarity surfaces from the external front, analysts said.
Asian currencies fell on Thursday, led by the Philippine peso, after central banks in the region left borrowing costs unchanged amid signs the global economic recovery was faltering.
At the Philippine Dealing System, the peso shed 22 centavos to close at 42.470 against the US dollar from 42.250 the previous trading day.
The dollar-peso pair opened at 42.250 and moved to a high of 42.470 and to a low of 42.225. Total trading volume surged to $1.098 billion from $635.57 million the previous day.
The currency pair is expected to trade flat today.
Singapore shares closed higher on Thursday, with the benchmark Straits Times Index at 2,859.90, up 0.87 percent, or 24.77 points.
About 1.5 billion shares exchanged hands.
Gainers beat losers 229 to 217.
The Stock Exchange of Thailand main index went up 3.49 points or 0.33 percent to close at 1,072.21 points at the end of trading session on Thursday. The trade value was 24.69 billion baht, with 4.02 billion shares traded.
The SET50 index ended at 747.06 points, up 2.88 points or 0.39 percent, with a total trade value of 16.21 billion baht.
The SET100 index rose 6.06 points or 0.37 percent to stand at 1,628.81 points, with a total turnover of 20.35 billion baht.
The SETHD index went up 3.31 points or 0.32 percent to stand at 1,032.00 points, with total trade value of 4.35 billion baht.
The MAI index went up 1.09 points or 0.36 percent to close at 300.61 points, with total transaction value of 597.49 million baht.
Top five most active values were:
ADVANC closed at 122.50 baht, down 2.00 baht (1.61 percent)
TOP closed at 68.25 baht, up 1.00 baht (1.49 percent)
IVL closed at 38.00 baht, up 1.00 baht (2.70 percent)
LOXLEY closed at 4.10 baht, unchanged
PTT (XD) closed at 326.00 baht, up 2.00 baht (0.62 percent)
On the Hanoi Stock Exchange, the HNX-Index sank into the red as this morning's session was about to close before rallying to end at 76.94 points, up 0.25 percent.
Advancers outnumbered decliners by 220-63.
Market value rose by 18 percent compared to yesterday's session to VND822.8 billion (US$39.7 million) on a volume of 70.2 million shares.
Kim Long Securities Co (KLS) saw the highest trading volume, with 7.65 million shares changing hands.
Meanwhile on the HCM Stock Exchange, the VN-Index increased by another 2.1 percent to 453.26 points.
About 70 percent of all listed codes managed gains.
The value of trades jumped 34 percent over yesterday's level to VND944.2 billion ($45.8 million) on a volume of 60.5 million shares, which themselves climbed 38 per cent.
Blue chips were mixed, but the majority advanced. Three of the 10 leading shares by capitalisation hit their ceiling prices. They were insurer Bao Viet Holdings (BVH), Phu My Fertiliser (DPM) and food processor Masan Group (MSN).
Six others added 0.7-2.9 percent.
Telecommunications equipment provider Sacom (SAM) surprised the HCM City market by being the most active code, with 3.2 million shares exchanged.
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