Sign up | Log in




Home  >>  Daily News  >>  ASEAN STOCK WATCH

ASEAN STOCK WATCH Asean Affairs  5 September 2012

ASEAN Market Preview

By Shayne Heffernan Ph.D.

A purchasing managers index survey of thousands of eurozone manufacturers compiled by research firm Markit came in at 45.1 in August. While it is up from 44.0 in July it still shows the sector is deep in contraction.

Any score below 50 indicates shrinkage.

Equities were lower for much of the session, with industrial and material names weak after a report showing manufacturing contracted by its fastest pace in more than three years. Telecom and consumer staples, two groups that tend to outperform during periods of uncertainty, led on the day.

Markets remain skittish ahead of the ECB's meeting on Thursday, where ECB President Mario Draghi is expected to unveil plans to lower borrowing costs for countries such as Spain and Italy, whose bond market troubles are the latest front in the region's debt crisis.

A rally in Apple distorted the End of Day result, Asia is not expected to trade higher today.

Interested in Investing in ASEAN?</strong>

<strong>Linda Johnson,</strong>
<strong>Business Development Director – Private Client Group,</strong>
<strong>Heffernan Capital Management</strong>


<strong>3 Raffles Place #07-01</strong>
<strong>Bharat Building Singapore 048617</strong>
<strong>Tel: +65 6329 6408</strong>
<strong>Fax: +65 6329 9699</strong>


GSH Corp surged after the consumer goods distributor said it plans to acquire a 60-per-cent stake in a property development company in China for 314.9 million yuan (S$61.8 million).

Separately, the company said it had received approval from the Singapore Exchange to be removed from the bourse's watch-list with effect from Tuesday, after meeting certain profit and market capitalisation requirements.

GSH shares rose as much as 17 per cent to S$0.109 on Tuesday, the highest since April 26, before closing up 8 per cent at S$0.101. More than 249 million shares changed hands, making it the top stock traded by volume.

The stock has been in the spotlight after Singapore tycoon Goi Seng Hui, also known as Sam Goi, became the company's new majority shareholder in April. GSH was formerly known as JEL Corp (Holdings).

GSH said on Monday its unit had signed a non-binding memorandum of understanding with Chongqing Boneng Property Development for the proposed acquisition. GSH said it was exploring opportunities in property development and construction.


Sri Trang Agro-Industry, is hoping to become a market leader in the global market by 2014 and is kicking off this plan by putting aside Bt2 billion to build three new plants over 2013-2014.
Company director Kitichai Sincharoenkul said his firm wanted to boost its production capacity to 1.5 million tonnes by 2014 from its current scope of 1.1 million to 1.2 million tonnes.

"We aim to double our global market share from 9 per cent to 15 per cent by 2014," he said.

This year Sri Trang was able to boost its production capacity to 100,000 tonnes at its factory in Udon Thani province and by another 100,000 tonnes in Palembang, Indonesia. The boost in its production capacity should help the company's sales volume grow by 10 per cent next year, Kitichai said.

Sri Trang's revenue this year is expected to be Bt100 billion, less than last year's Bt133 billion because the price of rubber has plunged 40 per cent this year to US$2,700 (Bt84,645) per tonne.

He said the global demand for rubber was dropping due to the economic slowdown, though demand for the material in the automotive industry is rising thanks to the booming Chinese economy. China is the key importer of rubber at 37 per cent of total sales volume, followed by the United States and Europe.


KLCI index gained 0.21 points or 0.01% on Tuesday. The Finance Index fell 0.09% to 14782.21 points, the Properties Index dropped 0.33% to 1054.42 points and the Plantation Index rose 0.01% to 8657.21 points. The market traded within a range of 3.07 points between an intra-day high of 1655.35 and a low of 1652.28 during the session.

Actively traded stocks include NEXTNAT, INGENS, UTOPIA, INGENS-WA, GLOTEC, ASIABIO, UTOPIA-WA, ASUPREM, NEXTNAT-WA and TMS. Trading volume decreased to 1335.57 mil shares worth RM1422.47 mil as compared to Monday’s 1494.20 mil shares worth RM1682.54 mil.

Leading Movers were GENM (+6 sen to RM3.57), AXIATA (+2 sen to RM6.22), YTL (+2 sen to RM1.86), PETGAS (+8 sen to RM19.26) and AIRASIA (+3 sen to RM3.50). Lagging Movers were CIMB (-5 sen to RM7.82), TENAGA (-4 sen to RM6.80), PPB (-14 sen to RM13.86), YTLPOWR (-2 sen to RM1.69) and UEMLAND (-4 sen to RM1.86). Market breadth was negative with 274 gainers as compared to 440 losers.


The Jakarta Composite Index fell 12 points to close at 0.31 percent on Tuesday after Bakrie Telecom was suspended by the Indonesian Stock Exchange (IDX) because they were having difficulty servicing their debt.

Energi Mega Persada, which is under the Bakrie Brother’s umbrella, fell 17. 89 percent on Tuesday in a general decline for the energy sector — Bumi Resources, Indonesia’s biggest thermal coal producer, also continued its downward plunge, falling 12.61 percent.

“[Because of Bakrie Telecom’s difficulty in servicing its debt, other stocks inside the group are down,” said Mastono Ali, an anaylst with CIMB securities. “We can witness investors, traders and institutions selling holdings inside the group.”   

The suspension anchored the JCI as a whole, especially energy. Coal miner’s PTBA and  ITMG (who are not affiliated with the Bakrie group) were also also down today.

“We do not think its because of the fall in coal prices due to the drag in Bumi,” Mastono said. “So investors are scrambling to exit Bumi to cover their losses, and they have to take profit in other stocks, which happen to be in other sectors. Even though other stocks are not down as much as Bumi resources, the JCI is down by 0.3 percent.”  

Adaro Energy closed down .72 percent, while Borneo Lumbung Energi closed down 1 percent.


The peso strengthened further on Tuesday as the European Central Bank’s unveiling of a new stimulus plan for the eurozone boosted appetite for emerging-market assets.

The local currency closed at 41.905 against the US dollar, up by 7.5 centavos from the previous day’s finish of 41.98:$1.

Intraday high hit 41.84:$1, while intraday low settled at 41.92:$1. Volume of trade amounted to $735.3 million from $861.7 million previously.

The European Central Bank has said it intends to buy short-term bonds issued by European governments, a move seen to help stimulate lackluster European economies.

Traders said the announcement over the weekend by the US Federal Reserve that it might implement another stimulus measure for the US economy as well as the latest news over the ECB’s bond-buying plan somewhat improved the outlook of investors on the global economy.

As a result, traders said, appetite for emerging market assets improved, thereby lifting the Asian currencies including the peso.

Yesterday in Asia

Tokyo slipped 0.10 percent, or 8.38 points, to 8,775.51, Sydney fell 0.61 percent, or 26.2 points, to 4,303.5 and Seoul lost 0.29 percent, or 5.58 points to 1,907.13.

Hong Kong ended 0.66 percent lower, shedding 129.30 points to 19,429,91 and Shanghai fell 0.75 percent, or 15.50 points, to 2,043.65.

– Taipei closed flat, edging up just 0.82 points to 7,451.35.

Taiwan Semiconductor Manufacturing Co. was 0.12 percent higher at Tw$84.0 while leading smartphone maker HTC lost 2.10 percent to Tw$256.0.

– Manila closed 0.83 percent, or 43.21 points, down at 5,175.87.

Philippine Long Distance Telephone led the retreat, dropping 1.09 percent to 2,730 pesos, while Ayala Land fell 1.97 percent to 22.45 pesos.

– Wellington gained 0.19 percent, or 6.99 points, to 3,676.02.

Contact Energy rose 1.0 percent to NZ$4.95 and Fletcher Building slipped 1.2 percent to NZ$6.52.

– Singapore closed down 0.19 percent, or 5.67 points, to 3,011.55.

Singapore Telecommunications gained 0.60 percent to Sg$3.38 while DBS Group fell 0.69 percent to Sg$14.30.

– Jakarta closed 12.70 points, or 0.31 percent lower, to 4,105.25.

Coal company Bukit Asam fell 2.7 percent to 14,250 rupiah while rival Bumi Resources slid 12 percent to 650 rupiah.

– Kuala Lumpur ended flat, inching up 0.01 percent, to 1,654.11.

AirAsia gained 0.9 percent to 3.50 ringgit, and Kuala Lumpur Kepong added 0.3 percent to 23.46. Tenaga Nasional shed 0.6 percent to 6.80 ringgit.

– Bangkok rose 0.07 percent or 0.83 points to 1,236.31.

Energy provider BANPU lost 1.33 percent to 444.00 baht, while cement producer SCCC gained 1.46 percent to 347.00 baht.

– Mumbai rose 0.32 percent, or 56.47 points, to 17,440.87.

Jindal Steel rose 2.44 percent to 352.85 rupees and the largest private firm Reliance Industries rose 1.87 percent to 778.55.


Shayne Heffernan Ph.D.  

Linda Johnson, Business Development Director - Private Client Group, Heffernan Capital Management
3 Raffles Place #07-01
Bharat Building Singapore 048617
Tel: +65 6329 6408 Fax: +65 6329 9699
Email :
Suite 53 Athenee Tower
63 Wireless Road, Lumpini, Pathumwan, Bangkok 10330
New York 347 5th Avenue, Suite 1402-508 NY, NY 10016


Comment on this Article. Send them to
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below 




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    6 September 2012  Subsribe Now !
 • SE Asia health ministers agree on better ...   Subcribe: Asean Affairs Global Magazine
• Asian 'peace council' takes form in Bangkok 
Asean Affairs Premium

• Philippines praises Clinton's remarks on south ...

Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Malaysia, Brunei agreement to boost trade
• Philippine approves US$9b infrastructure projects
• Bank of Thailand expected to keep policy rate ...
• Economy is top priority for Vietnam government  
 • Myanmar to appoint new defense minister  
Asean Analysis              6 September 2012
Advertise Your Brand
• Asean Analysis- September 6, 2012  
• Asean Weekly- August 17, 2012 Sponsor Our Events

Asean Stock Watch     6 September 2012 

• Asean Stock Watch- September 6, 2012 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand