SE Asia Stocks-Indonesia near all-time high; Thailand retreats
Wed Aug 25, 2010 6:41am EDT
* Thai index heavyweight PTTEP falls on oil spill claim
* Malaysia snaps 8-day rising streak;
* Vietnam at 1-yr low on fears of further FX devaluation
By Viparat Jantraprap
BANGKOK, Aug 25 (Reuters) - Indonesia's main share index
climbed to a fresh all-time high on Wednesday as investors
sought bargains from resource-related shares just as regional
equities remained wary of a spate of worrying U.S. economic
data.
Cautious investors cut positions in overbought markets,
lopping 0.6 percent each off Thai stocks .SETI and Malaysian
shares .KLSE. Economic optimism had pushed the Thai index to
a 33-month high and Malaysia's index to a 2-½ year high.
Thailand's central bank raised interest rates by 25 basis
points for the second straight month on Wednesday, citing
growing inflation and faster-than-expected growth in Thailand,
Southeast Asia's second-biggest economy. [ID:nSGE65103A]
The Bank of Thailand said rates were still too low,
reinforcing market views of another rise at its next meeting in
October. [ID:nSGE65103A]
The Jakarta Composite Index .JKSE ended 0.8 percent
higher at 3,138.91, just shy of a record 3,145.11 the previous
session.
Asia's second-best performing bourse gained small inflows
of $8.9 million on the session, Thomson Reuters data showed.
Indonesia's economic outlook pointed to further market
gains, according to John Teja, director at Jakarta-based
Ciptadana Securities. He pegged a short-term target for
Indonesia's main index at 3,200.
"Good news is that Indonesia's foreign reserves in August
hit an all time high $80.4 billionn, an increase of $1.6
billion from July reserves, and that helps the rupiah IDR= to
remain stable. This should support sustainable economic growth
and a stable macro environment."
Coal miner PT Bumi Resources Tbk (BUMI.JK) surged 11.6
percent while integrated energy company PT Medco Energi
Internasional Tbk (MEDC.JK) gained 2.4 percent.
Broad Asian stocks eased as U.S. stock index futures
pointed to a weaker open. The MSCI Asia ex-Japan index
.MIAPJ0000PUS had fallen 1.1 percent by 1005 GMT and U.S.
stock index futures .DJUO were down 0.08 percent.
Singapore .FTSTI gained 0.1 percent, reversing its early
loss to a one-month low and ended its three-day loss. The
Philippines .PSI gained 0.7 percent while Vietnam .VNI
dropped 2.4 percent, extending losses for a third session and
hitting its lowest since July 23, 2009.
Vietnam's loss reflected in part concerns over a potential
further devaluation of local currency.
"The market factored in the fears of another devaluation of
local currency after the central bank recently devalued the
dong," said Bui Quy Thanh, head of Brokerage Department at Bao
Minh Securities.
In Bangkok, state-controlled PTT Exploration and Production
Plc (PTTE.BK) ended down 0.4 percent.
It fell as much as 1 percent at one point after Indonesia
said it planned to seek at least $2.2 billion in compensation
from the energy firm for damage caused by a 2009 oil spill in
the Timor Sea. [ID:nSGE67O096]
Among bright spots in the region, Southeast Asia's largest
telcom firm Singapore Telecommunications (STEL.SI) rose 1.3
percent as investors bought shares in companies whose earnings
are more resilient in an economic downturn.
"We are leaning towards the bearish side for the STI, as we
are seeing signs of risk aversion coming back, with a flight
from risky assets like equities across the U.S., Europe and
Asia," said Phua Ming Weii, a technical analyst at Phillip
Securities.
In Bangkok, the SET index's 14-day relative strength index
(RSI) closed at 68.08, falling from 74.5 Tuesday. Malaysia's
14-day RSI was at 71.69 at the close. An RSI level of 70 and
higher indicates the market is overbought.
Singapore's 14-day RSI was 46.2, Indonesia's was 66.09 and
Philippnes' was 59.56. Vietnam's 14-day RSI was 19.9 at the
close, indicating the market is oversold.
Wed Aug 25, 2010 6:41am EDT
* Thai index heavyweight PTTEP falls on oil spill claim
* Malaysia snaps 8-day rising streak;
* Vietnam at 1-yr low on fears of further FX devaluation
By Viparat Jantraprap
BANGKOK, Aug 25 (Reuters) - Indonesia's main share index
climbed to a fresh all-time high on Wednesday as investors
sought bargains from resource-related shares just as regional
equities remained wary of a spate of worrying U.S. economic
data.
Cautious investors cut positions in overbought markets,
lopping 0.6 percent each off Thai stocks .SETI and Malaysian
shares .KLSE. Economic optimism had pushed the Thai index to
a 33-month high and Malaysia's index to a 2-½ year high.
Thailand's central bank raised interest rates by 25 basis
points for the second straight month on Wednesday, citing
growing inflation and faster-than-expected growth in Thailand,
Southeast Asia's second-biggest economy. [ID:nSGE65103A]
The Bank of Thailand said rates were still too low,
reinforcing market views of another rise at its next meeting in
October. [ID:nSGE65103A]
The Jakarta Composite Index .JKSE ended 0.8 percent
higher at 3,138.91, just shy of a record 3,145.11 the previous
session.
Asia's second-best performing bourse gained small inflows
of $8.9 million on the session, Thomson Reuters data showed.
Indonesia's economic outlook pointed to further market
gains, according to John Teja, director at Jakarta-based
Ciptadana Securities. He pegged a short-term target for
Indonesia's main index at 3,200.
"Good news is that Indonesia's foreign reserves in August
hit an all time high $80.4 billionn, an increase of $1.6
billion from July reserves, and that helps the rupiah IDR= to
remain stable. This should support sustainable economic growth
and a stable macro environment."
Coal miner PT Bumi Resources Tbk (BUMI.JK) surged 11.6
percent while integrated energy company PT Medco Energi
Internasional Tbk (MEDC.JK) gained 2.4 percent.
Broad Asian stocks eased as U.S. stock index futures
pointed to a weaker open. The MSCI Asia ex-Japan index
.MIAPJ0000PUS had fallen 1.1 percent by 1005 GMT and U.S.
stock index futures .DJUO were down 0.08 percent.
Singapore .FTSTI gained 0.1 percent, reversing its early
loss to a one-month low and ended its three-day loss. The
Philippines .PSI gained 0.7 percent while Vietnam .VNI
dropped 2.4 percent, extending losses for a third session and
hitting its lowest since July 23, 2009.
Vietnam's loss reflected in part concerns over a potential
further devaluation of local currency.
"The market factored in the fears of another devaluation of
local currency after the central bank recently devalued the
dong," said Bui Quy Thanh, head of Brokerage Department at Bao
Minh Securities.
In Bangkok, state-controlled PTT Exploration and Production
Plc (PTTE.BK) ended down 0.4 percent.
It fell as much as 1 percent at one point after Indonesia
said it planned to seek at least $2.2 billion in compensation
from the energy firm for damage caused by a 2009 oil spill in
the Timor Sea. [ID:nSGE67O096]
Among bright spots in the region, Southeast Asia's largest
telcom firm Singapore Telecommunications (STEL.SI) rose 1.3
percent as investors bought shares in companies whose earnings
are more resilient in an economic downturn.
"We are leaning towards the bearish side for the STI, as we
are seeing signs of risk aversion coming back, with a flight
from risky assets like equities across the U.S., Europe and
Asia," said Phua Ming Weii, a technical analyst at Phillip
Securities.
In Bangkok, the SET index's 14-day relative strength index
(RSI) closed at 68.08, falling from 74.5 Tuesday. Malaysia's
14-day RSI was at 71.69 at the close. An RSI level of 70 and
higher indicates the market is overbought.
Singapore's 14-day RSI was 46.2, Indonesia's was 66.09 and
Philippnes' was 59.56. Vietnam's 14-day RSI was 19.9 at the
close, indicating the market is oversold.