"Real estate, financial shares drag Philippine market" BANGKOK, February 19 -- Philippine stocks fell the most on Tuesday dragged by losses in the real estate and financial stocks, as most of the Southeast Asian equity markets ended lower, while Malaysia gained as investors took positions amid the earnings season. The Philippine index dropped about 1% to its lowest level since Jan 8, dragged by losses in real estate and financial stocks. "The Philippine market right now is in search of a new catalyst and with none in sight, some investors are already choosing to take profit," said Rachelle Cruz, an analyst with AP Securities. BDO Unibank Inc shed 3.2%, while Ayala Land Inc dropped 3.7% to close at its lowest level since Jan 3. "Ayala Corp has $293 million worth of bonds that are exchangeable to shares of ALI and that will mature by that time (in May). Some investors may look to cash in, exerting a downward pressure on ALI's share price," a note from RCBC securities said. Meanwhile, the Malaysian index gained 0.8% to a three-month closing high on the back of materials and utilities. Petronas Chemicals Group Bhd rose 3.9% ahead of its fourth quarter result announcement. Shares of Kuala Lumpur Kepong Bhd strengthened more than 1%, after posting a jump in quarterly net profit. Real estate stocks drove the Vietnam index marginally higher, with Vinhomes JSC and Vingroup JSC rising 6.1% and 2%, respectively. Singapore and Indonesia indexes traded relatively lower.
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"SET drops, other Asean stock markets rise" BANGKOK, February 14 -- The Stock Exchange of Thailand index ended lower, while other Southeast Asian stock markets closed higher on Thursday as a surprise jump in monthly Chinese trade data brought slight relief amid continued focus on Sino-US talks. The SET index eased 3.09 points or 0.19% to 1,652.64, in turnover of 45.88 billion baht, despite gains in shares of telecom operators. True Corporation jumped 25 satang or 4.81% to 5.45 baht, Advanced Info Service added 2.50 baht or 1.37% to 184.50 and Jasmine International ended 25 satang or 4.24% higher to 6.15 baht. PTT shares however dropped 75 satang or 1.53% to 48.25 baht. The region's biggest trading partner, China, reported better-than-expected trade figures for January, easing some fears of an imminent slowdown in the economic powerhouse. High-level talks between the country and the United States have been a major focal point for markets this week. US President Donald Trump is considering a 60-day extension of the Mar 1 deadline for higher tariffs on Chinese imports, Bloomberg reported on Thursday, citing unnamed sources. The Philippine benchmark firmed 0.9% to snap four consecutive sessions of losses and led the gains among its regional peers. Financial stocks were the biggest boost to the index, with BDO Unibank Inc rising 2.3% to post its best close in nearly 11-months. Asian fast-food giant Jollibee Foods Corp jumped 1.7% and was also among the top gainers on the Philippine benchmark after reporting a rise in fourth-quarter net income. Philippine markets had seen large outflows over the past four sessions as foreign investors rebalanced their portfolios. Meanwhile, the Vietnam stock exchange continued to gain for the fourth straight day, closing 0.8% up, supported by a persisting rally in the country's real estate sector. Property developers Vingroup JSC and Vincom Retail JSC gained 3.6% each. "(The) Vietnamese market has been moving in a positive direction on Wall Street cues. Investor sentiment has also been supported by a possibly positive outcome of the Trump – Kim summit slated for Hanoi later this month," said a stock broker with SSI Securities Corp. "Traditionally, cashflows into the market in Vietnam are often strong in the first quarter of the year as several corporate investors have abundant cash at hands." The Malaysian index ticked up 0.2%, after data showed on Thursday that the country's economy expanded 4.7% in the October-December quarter from a year earlier, in line with expectations, ending four quarters of slowing growth. Singapore's index ended 0.3% higher ahead of a fourth-quarter GDP report due on Friday. The country's economy likely grew at a slower pace than initially estimated as growth in the city-state's manufacturing and services sectors came under strain from slowing demand, a Reuters poll showed. "Energy stocks lead SET gains, Philippine shares continue slide" BANGKOK, Februari 13 -- Thai shares rose on Wednesday, with energy stocks leading broad-based gains, while the Philippine index declined for a fourth consecutive session. Singapore stocks closed at a more than 4-month high, leading the gains in Southeast Asia after US President Donald Trump said he could relax the China trade deal deadline. Trump said on Tuesday that he could let the March 1 deadline to reach a trade agreement "slide for a little while," although he added he was not inclined to do so. However, his remarks spurred a rally in Wall Street overnight, as well as a number of Asian players. The Stock Exchange of Thailand index advanced 13.24 points or 0.81% to 1,655.73, in turnover worth 45 billion baht. Shares of energy stocks were among the largest boosts to the index. PTT Plc added 50 satang or 1.03% to 49 baht. PTT Global Chemical Plc gained 1.75 baht or 2.59% to 69.25 baht and PTT Exploration and Production Plc advanced 2.50 baht or 2.06% to 124 baht. The Philippine index, which has outperformed its peers this year so far, declined for a fourth consecutive session to end 1.1% lower, pressured by industrial and financial stocks. Industrial conglomerate JG Summit Holdings Inc dropped 3.9% and was the top loser on the benchmark, whereas BDO Unibank Inc fell 1.1%. Philippine's latest downturn appears to be a flow driven correction due to international investors reallocating their funds, said Rachelle C Cruz, an analyst with AP Securities. The Singapore index, which has a high trade exposure with China, outpaced its peers for the day with a 1.4% rise, posting its highest close since Oct 3, 2018. Financials bolstered the benchmark with lender United Overseas Bank Ltd jumping 2.5%. The Vietnam benchmark rose for the third day, closing about 0.8% higher, driven by financial and consumer stocks. Malaysian shares ended 0.1% lower ahead of the country's fourth-quarter GDP figures released on Thursday. BANGKOK, February 12 -- Thailand's stock market saw the largest slump in Southeast Asia as recent shockwaves in domestic politics and another possible US government shutdown riled investor confidence. The Stock Exchange of Thailand (SET) index closed on Monday at 1,638 points, down 13.68 points or - 0.83%, in turnover worth 40.7 billion baht. Institutional were net sellers of 2.3 billion baht, while foreign investors unloaded 1.6 billion worth of shares. Monday's decline was the steepest in Asean, higher than the 0.41% slump in the Jakarta Composite index. Domestic political risks have returned to the fore as the Election Commission will consider a complaint seeking to ban the pro-Thaksin Thai Raksa Chart party after its controversial bid last Friday to make Princess Ubolratana its prime minister candidate for the March 24 general election, said investment analyst Prakit Siriwattanaket. Princess Ubolratana is still a royal family member and is not allowed to take political positions, although she has stepped down to be a commoner, according to His Majesty the King's announcement late on Friday. The royal announcement published in the was nationally televised. If the Thai Raksa Chart party is dissolved, the other pro-Thaksin party Pheu Thai could lose more seats to opposition parties, said Mr Prakit. Thai Raksa Chart is viewed as an offshoot of Pheu Thai and was established about a decade ago before rebranding and relaunching late last year. Nuttachart Mekmasin, executive director at Trinity Securities, said institutional and foreign investors have offloaded local equities to reduce their risk exposure on the back of heightening domestic political risk. Shares associated with, or with a legacy tied to, the Shinawatra family tumbled from Thursday's surge. Shares of SC Asset Corporation Plc (SC) plummeted by 5.7% from Friday's close to end the day at 2.98 baht per share. Shares of Advanced Info Service Plc (ADVANC), InTouch Holdings Plc (INTUCH) and Thaicom Plc (THCOM), all of which have a legacy tied to Thaksin, stumbled by 3.72%, 4.82% and 9.83%, respectively. Domestic political sentiments will only affect these equities on a short-term basis as the stock fundamentals remain unchanged, said Mr Prakit. Besides developments on US-China trade talks, another possible US government shutdown if lawmakers fail to negotiate a compromise on border security before a Feb 15 deadline also keeps a lid on investor confidence, he said. Payment compliance The Securities and Exchange Commission (SEC) on Monday announced that billionaire Prasert Prasarttong-osoth and two other offenders agreed to comply with the SEC's civil sanction ruling by paying a combined sum of 499.45 million baht. From Nov 13, 2015 to Jan 12 2016, Dr Prasert, Poramaporn Prasarttong-osoth and Narumon Chainaknan colluded to sell and purchase Bangkok Airways Public Company Limited (BA) shares with each other continuously in a way of concealment to mislead the public on the price or volume of BA shares. HONG KONG, February 11 -- As high-level and high-stakes U.S.-China trade talks get underway in Beijing this week, global markets are responding positively, with Asian stocks closing mostly higher on Monday. The Shanghai Composite Index rose 1.36 percent to close at 2,653. Hong Kong's Hang Seng gained 0.6 percent to 28,123. And Taiwan's TSEC 50 Index grew 0.72 percent to 10,004. Australia's ASX lost .12 percent to close at 6,128. European markets were rallying early in the day, with France's CAC 40 up more than 1 percent around mid-morning. "Markets anticipate a trade deal is coming and the truce will be extended," David Kotok Chairman and Chief Investment Officer of Cumberland Advisors, told NPR in an email. "All sides want a settlement so we believe it will be achieved." With the trade war on pause, Treasury Secretary Steven Mnuchin and trade representative Robert Lighthizer are part of a U.S. delegation working to climb down from an escalating trade war put in motion by the Trump administration. Mnuchin and Lighthizer are set to meet their Beijing counterparts on Thursday with the goal of hashing out a deal ahead of a March 1 deadline when U.S. tariffs against China are set to increase to 25 percent from 10 percent on $200 billion worth of Chinese goods. On Monday, lower level negotiations began in Beijing with Deputy Trade Representative Jeffrey Gerrish leading the U.S. side. President Trump and President Xi Jinping agreed to a truce in December while meeting at the sidelines of the Group of 20 summit in Argentina. Before the leaders decided on a trade detente, the tariff hike had been set to go into effect in January. Late last month, the White House reiterated that March 1 marks a hard deadline and unless its demands are met, the new tariffs will go into effect. It said in a statement that "while progress has been made, much work remains to be done." In an interview with Mary Louise Kelly, Lighthizer synthesized the U.S. goals for the talks. "We need an open market or a more open market, more access by American companies," he said. "We need protection of intellectual property. We need to stop cybertheft." "To do that properly would require significant changes in how China manages its economy, changes that would put the Chinese government and its state-owned enterprises in a vulnerable position," Schmitz said. The price of failed talks and the resumption of tariffs, he added, would include consumers on both sides losing out, with the price of imported goods going up. U.S.-China negotiations have been ongoing at varying levels for months. "I'm never confident," Lighthizer said. China has "had a system that's worked very well for them for a long time. ... But the reality is this is a major, major issue, and it's one that has to be sorted out." Kotok said that he anticipates markets this week will continue to reflect optimism for a deal: "Gradual removal of existing tariffs and more openness with less protectionism." "SET falls most in Asean region on political uncertainty" BANGKOK, February 11 -- Thai stocks closed lower on Monday, falling most in the Southeast Asia region amid political uncertainty in the country, while Vietnam markets surged as trade resumed after a week-long holiday. The Stock Exchange of Thailand index ended 13.68 points or 0.83% lower to 1,638.00, in turnover worth 40 billion baht. Mobile services provider Advanced Info Service Plc fell seven baht or 3.72% to 181 baht, InTouch Holdings Plc also plunged 2.75 baht or 4.82% to 54.25 baht, SC Asset Corporation Plc dipped 18 satang or 5.70% to 2.98 baht and Thai Com Plc ended 85 satang or 9.83% lower to 7.80 baht. The Election Commission did not approve the nomination of Princess Ubolratana for prime minister by the Thak Raksa Chart Party on Monday, putting an end to the controversial, short-lived candidacy by echoing His Majesty the King's royal command that royalty should be "above politics". His Majesty's royal command came after market hours on Friday. Shares of listed companies associated with, or with a legacy tied to, the Shinawatra clan surged considerably last week before TRC announced its prime ministerial candidate. On the other hand, Vietnam benchmark ended about 1.9% higher as trade resumed after a week-long Lunar New Year holiday. Gains on the benchmark were largely broad-based, with real estate and financial stocks in the lead. The index clocked its best session since early-December, and was at a near 8-week high. Shares of property developer Vingroup gained about 4.3%, while those of Joint Stock Commercial Bank for Foreign Trade of Vietnam ended 2.8% higher. Other Southeast Asian markets traded in a flat-to-low range as markets adopted a wait and see approach with trade negotiations between the United States and China recommencing from Monday. Singapore stocks pared early losses to end largely flat. Liu Jinshu, head of research at Tayrona Financial said there was some resistance emerging above the 3,200 level, particularly due to the market being unable to make significant progress above that level on Friday. Worries over the Chinese economy have cast a shadow over Singapore's prospects, owing to the island nation's large electronic exports to the country. A US delegation arrived in Beijing on Monday to recommence talks, ahead of the March 1 deadline to reach a trade deal. China is Southeast Asia's largest trading partner, and its trade tiff with the US has exacted a heavy toll on the region. "SET ends flat, Malaysia stocks lead losses in Asean" BANGKOK, February 8 -- Thai shares lost slightly on Friday, while Malaysia stocks led losses, as investors were rattled after the United States dismissed the likelihood of a quick resolution to the long drawn Sino-US trade war. US President Donald Trump on Thursday said he would not be meeting China's Xi Jinping before the March 1 deadline, sparking fears that two economies would not be able to clinch a pivotal trade deal. The negative sentiment dampened regional markets and pushed broader Asian shares lower, though trading remained thin as China was closed for Lunar New Year holidays. The Stock Exchange of Thailand index eased 1.43 points or 0.09% to 1,651.68, in turnover worth 56.86 billion baht. The SET index dropped 16 points shortly after the open before it rebounded to end flat. The Malaysian index ended 0.4% lower, falling the most across the region. Index heavyweight Axiata Group Bhd fell 4.4% to an over two-month low, dragging the benchmark. According to local media reports Axiata Group and its unit Ncell are to foot a tax bill of 61 billion Nepalese rupees (US$536.03 million), excluding late fees and fines for the capital gains tax on Ncell buyout deal following a Supreme Court ruling. Philippine stocks fell 0.4%, hurt by losses in financial and telecom stocks. For the week the Manila benchmark index dropped 0.9%, marking its first weekly loss in 2019. PLDT Inc dropped 3.4%, while shares of Bank of the Philippine Islands slid 1.4%. The Indonesian benchmark closed down 0.2%, with material and energy stocks leading declines. The index marked its first weekly loss in the new year, snapping a rally of six weeks. Charoen Pokphand Indonesia Tbk PT dropped 1.9%, while United Tractors Tbk PT slipped 2.9%. Vietnam's financial markets remained closed this week for Lunar New Year holidays. "SET drops 5.60 points, Malaysia shares lead Asean peers" BANGKOK, February 7 -- The Stock Exchange of Thailand index dipped on Thursday, while Malaysia shares led the gains, as optimism over a trade deal between the United States and China were renewed following indications of further official talks in Beijing next week. US Treasury Secretary Steven Mnuchin said on Wednesday that he and other US officials would travel to Beijing to continue trade talks, eyeing a deal before the March 2 deadline. China is the biggest trading partner of the region. With easing trade frictions, a dovish Fed and prospects of increased infrastructure spending, foreign investors are now returning to Southeast Asian markets, propelling these markets to record an upward trend for the most part. So far this year, foreign investors have been net buyers of stocks in markets such as Indonesia, the Philippines, Thailand and Vietnam. The SET index eased 5.60 points or 0.34% to 1,653.11, in turnover of 50 billion baht. The index was dragged by consumer and health care stocks. Shares of Bangkok Dusit Medical Services Plc lost 30 satang or 1.27% to 23.30 baht and Siam Makro Plc dropped 1.25 baht or 3.29% to 36.75 baht. The Malaysian benchmark rose 0.6%, leading gains in the region after thin trading in the region this week due to a two-day closure on account of the Chinese New Year. Utilities and consumer cyclicals boosted the Malaysian benchmark index, with Tenaga Nasional Bhd and Maxis Bhd climbing 3.7% and 2.5%, respectively. The Singapore index gained 0.5% to its highest level since Jan 25, helped by telecom and industrial stocks. "Singapore equities has some catching up to do as the US markets have done well over the last two trading sessions. At the same time, traders are also placing bets ahead of the budget on February 18, 2019," said Liu Jinshu, head of research at Tayrona Financial Pte Ltd. Shares of Singapore Telecommunications Ltd gained 1% while those of Jardine Matheson Holdings Ltd firmed 1.3%. The Philippine stock index climbed 0.5%, with gains concentrated in industrial stocks. SM Investments Corp and JG Summit Holdings Inc gained over 2% each. The Philippine central bank kept its benchmark interest rate steady for a second straight meeting on Thursday, saying inflation risk had fallen on lower crude oil and food prices. Indonesian stocks also ended the session slightly lower, hurt by consumer and financial stocks. Charoen Pokphand Indonesia Tbk PT slipped 2.8%, while Bank Central Asia Tbk PT slid 0.5%. Vietnam financial markets remained closed for Chinese New Year holidays. "Indonesia stocks end at 11-month high, SET adds 5 points" BANGKOK, February 6 -- Indonesian stocks surged more than 1% to close at an 11-month high on Wednesday, after the country posted a faster-than- expected GDP growth in the fourth quarter of 2018, while Thai shares added 5.62 points to close above the 1,6500 mark. Indonesia's gross domestic product (GDP) in the final quarter of 2018 expanded 5.18% from a year earlier, compared with 5.11% forecast in a Reuters poll, while for the year the economy grew 5.17%, marking its best in five years. The country's benchmark index ended 1.02% higher, its highest level since March 5, 2018. Telecom and material stocks were the biggest boost to the index, with Telekomunikasi Indonesia (Persero) Tbk Perusahaan Perseroan PT and Unilever Indonesia Tbk PT rising 2.1% and 2%, respectively. The Stock Exchange of Thailand index gained 5.62 points or 0.34% to 1,658.71, in turnover of 38.5 billion baht. The index was driven by financial and material stocks and the Bank of Thailand's decision to hold benchmark interest rates steady. Kasikornbank Plc added 2 baht or 1% to 202 baht and Siam Commercial Bank Plc gained 2.50 baht or 1.89% to 135 baht. Shares of Siam Cement Group Plc firmed 6 baht or 1.29% to 470 baht. Philippine index reversed course and slipped from 10-and-a-half-month high hit earlier in the session to close marginally lower. Industrial stocks dragged the index, with SM Investment Corp and JG Summit Holdings Inc slipping 1.7% and 3.7%, respectively. "I would say it (the reason for the fall) is profit taking for the lack of any news to suggest otherwise," said Charles William Ang, associate analyst at COL financial. He added that good inflation rates had pushed the index earlier in the day. The country's inflation had eased in the month of January, supporting views that the central bank would leave interest rates on hold on at its meeting on Thursday. Malaysia, Vietnam and Singapore stock markets were closed for Lunar New Year holidays. MOSCOW, February 5 -- The Moscow stock exchange (MOEX) index reached a new all-time high on Tuesday as global oil prices continue to climb. Russian stocks have also been surging since the US lifted sanctions against Russian aluminum giant Rusal. The MOEX index hit two records in a row as trading opened this week. It rose to 2537.47 points on Monday and closed at 2523.52 points, a historic high for the end of the trading day. On Tuesday, the index continued to surge, hitting a record 2548.78 points as of 12:39 Moscow time (09:39am GMT). MOEX is the main ruble-denominated index of the Russian stock market, comprised of the shares from more than 40 major Russian companies, including Sberbank, Gazprom, Rosneft, UC Rusal, Novatek and other blue chip firms. The number of investors on the Moscow Exchange recently reached two million, with more than 700,000 people joining trading in 2018. Banks were most active in opening retail investment accounts last year. Total trading volume across the Moscow Exchange markets increased by 1.5% to 58.9 trillion rubles (nearly $900 billion) in January 2019, compared to the same period last year. The growth of the MOEX index was supported by rising oil prices. On Monday, global benchmarks West Texas Intermediate (WTI) and Brent crude reached their highest price level since last November. On Tuesday morning, crude prices rolled back slightly, with Brent trading at $62.23 a barrel and US WTI crude standing at $54.41. Russian markets were also boosted after Washington lifted its punitive measures against aluminum giant Rusal and two other companies linked to businessman Oleg Deripaska. The companies significantly diminished Deripaska’s ownership and severed his control. Now Rusal as well as its parent, En+ Group, may hope for inclusion in the global MSCI index. "SET rises on strong oil prices, other Asean stock markets drop" BANGKOK, February 4 -- Thai stocks bucked the regional trend rising marginally, while other Southeast Asian markets ended lower in lacklustre trading on Monday, with Philippine and Indonesia indexes falling the most. The Stock Exchange of Thailand index added 2.22 points or 0.13% to 1,653,62, in trade of 31.74 billion baht. The market was supported by strong oil prices. PTT Exploration and Production Plc gained 1.50 baht or 1.2% to 125.50 baht, while IRPC Plc gained 10 satang or 1.7% to 5.90 baht. The Philippine index was the biggest loser in the region falling nearly 1%, with markets in Malaysia and Singapore closing early on account of Chinese New Year. "What we're seeing is traders taking potential risks off the board because the quality of the markets will be lower than normal with the Chinese New Year," said Jeffrey Halley, a senior market analyst at OANDA based in Singapore. "People like portfolio managers are really going to lighten up risks due to everybody else being away because without all of those major players around the liquidity will be lot lower in markets." Industrial and financial stocks dominated the losses in the Philippines, with SM Investments Corp and SM Prime Holdings Inc falling 1.8% each. "The volume seems to be minimal so I think the market is just correcting since it rallied in the past two trading days," said Miguel Ong, a research analyst at AP Securities in Manila. Philippines has had the strongest beginning to 2019 in Southeast Asia, having gained 8.08% so far. Indonesian stocks dropped 0.9% snapping three sessions of gains, hurt by financials and consumer discretionaries. Bank Central Asia Tbk PT dipped 2.4%, while Astra International Tbk PT sank 3%. Malaysian stocks erased early gains to close the session unchanged, while Singapore stocks ended the session slightly lower. Vietnam markets were closed for a holiday. "Manila leads Asean bourses, SET ends higher" BANGKOK, February 1 -- Philippine shares rose 1.7%, helped by foreign investor buying and as the latest round of Sino-US trade talks kept hopes of a comprehensive trade deal alive, while Thai stocks closed 0.59% higher on Friday. The latest round of Sino-US trade talks ended on a positive note, with US President Donald Trump saying he was optimistic that the two nations could reach "the biggest deal ever made." The benchmark Philippine stock index was the biggest gainer in the region, boosted by financials and industrials. BDO Unibank climbed 3.7% and SM Investment Corp added 2.5%. Philippine shares advanced 1.1% this week in their fifth consecutive weekly gain. "Foreign buying in the Philippines has been consistent over the last few weeks, and for today the biggest driver would be foreign inflows towards emerging markets," said Charles William Ang, an analyst with COL Financial Group. Foreign investors bought net 1.02 billion pesos (US$19.54 million) worth shares on Friday and 5.75 billion pesos this week, according to Refinitiv data. Investors now await January inflation data and the central bank's monetary policy review due next week. Inflation had cooled more than expected in December, reinforcing views that the central bank is done raising interest rates. The Stock Exchange of Thailand index rose 9.67 points or 0.6% to 1,651.40, after data showed January's headline inflation rate was below the Bank of Thailand's target range of 1-4% for a third straight month. The BoT will review borrowing rates next week. The central bank governor had said in January that the country's accommodative monetary policy is still needed to support the economy. PTT Plc gained 1 baht or 2% to 49.50 baht, while Airports of Thailand Plc climbed 75 satang or 1.09% to 69.75 baht. Indonesian shares closed 0.1% higher after rising as much as 0.8% earlier, as losses in telecom stocks offset gains in financials. Indonesian shares gained 0.9% for the week, marking their sixth straight weekly rise. Bank Rakyat Indonesia (Persero) rose 1.8% to close at a record high, while Charoen Pokphand Indonesia jumped 4.4%. Indonesia's annual consumer inflation in January slowed more than expected, data from the statistics bureau showed. The Malaysian stock market was closed for a holiday. SHANGHAI, January 31 -- Foreign investors are piling into Chinese stocks after a dismal 2018 for the country’s equity market. They’ve bought 52 billion yuan ($7.8 billion) of A shares via trading connects in Shanghai and Shenzhen this January, putting it on course to be the biggest month for inflows since the second exchange link with Hong Kong opened in late 2016, Bloomberg calculations based on trading turnover show. “Funds are flowing back to emerging markets after the U.S. Fed slowed the pace of rate hikes. A shares are showing cheap valuations and a possible fundamentals recovery on the back of government stimulus,” said Vincent Hsu, a Taipei-based fund manager at Fuh-Hwa Securities Investment Trust Co. Growing Interest Foreign buying of China's A shares hit record in January More than $2.3 trillion was wiped from China’s stock markets last year, as the Shanghai Composite Index plunged 25 percent and the Shenzhen Composite Index tumbled 33 percent, their worst performances since the financial meltdown a decade earlier. Even then, foreign investors weren’t dissuaded: they bought net 294 billion yuan of A shares in 2018.
Enthusiasm for Chinese equities is picking up further now that the general mood is improving -- the Shanghai and Shenzhen benchmarks have advanced 3.3 percent and 1.3 percent in January, respectively. Along with Beijing’s plans to loosen lending and boost the economy, occasional signs of progress in U.S.-China trade talks have helped. "Gains in financial, energy stocks help SET index rise" BANGKOK, January 31 -- Thai shares rose to a near eight-week closing high on Thursday after gains in the energy and financial sectors. Vietnam and Malaysia shares dropped but other Southeast Asian markets were in the green on the Federal Reserve's dovish outlook. The Fed kept rates at 2.25 % to 2.5 % on Wednesday as widely expected, which are well below historical averages. The US central bank also discarded its promises of "further gradual increases" in interest rates, and said it would be "patient" before making any further moves amid signs of global economic slowdown and a damaging trade war with China. Rising US borrowing costs in 2018 had led to massive capital flight from emerging markets, prompting regional central banks to hike rates to reduce the rate differential and combat a stronger US dollar. "Markets clearly like the newly dovish Fed, which had exceeded expectations for dovishness in the midst of a positive output gap and tight labour market," Mizuho Bank said in a client note. The Stock Exchange of Thailand index added 9.13 points or 0.56% to 1,641.72, in turnover worth 57 billion baht. Kasikornbank topped the most active stock. KBANK jumped 7 baht or 3.63% to 200 baht, Bangkok Bank gained 4 baht or 1.90% to 215 baht and Siam Commercial Bank closed at 133 baht, up 2 baht or 1.53%. PTT Plc added 25 satang or 0.52% to 48.50 baht and PTT Global Chemical ended 50 satang or 0.74% higher to 68 baht. Indonesian shares jumped 1.1%, boosted by financial and industrial stocks. The index rose 5.5% in January in its third straight monthly gain. Bank Central Asia and Unilever Indonesia gained about 2% and 1.9%, respectively. An index of the country's top 45 liquid stocks climbed 1.5% to its highest since April 2018. Philippine shares closed 0.3% higher after gaining as much as 1.5% earlier in the session. The benchmark stock index pared its gains after the central bank said January annual inflation is likely to settle within a range of 4.3% to 5.1%, above its target of 2-4% for 2019. Surging inflation had dented consumption and put pressure on the peso in 2018, prompting Bangko Sentral ng Pilipinas to hike its benchmark rate five times. The Philippine stock index added 7.3% in January, in its sharpest monthly gain since March 2016. Vietnam shares ended 0.6% lower, while Malaysian shares retreated from early gains to close flat. "SET index ends above 1,630 mark, leads SE Asian peers" BANGKOK, January 30 -- Thai shares lead the stock markets in Southeast Asia on Wednesday, with PTT Exploration and Production Plc emerging as the top boost to the index. The Stock Exchange of Thailand index recovered from early weakness to close at 1,632.60, up 8.55 points or 0.53%, in turnover worth 48 billion baht. PTTEP topped the most active stock after the company posted an 88.6% rise in full-year profit. PTTEP gained 2.50 baht or 2.11% to 121 baht, while Airports of Thailand Plc gained 1 baht or 1.5% to 69.75 baht. Philippine shares recorded their worst fall in two weeks, as investors awaited a US Federal Reserve rates review and key Sino-US trade talks. The Fed is widely expected to leave rates unchanged on Wednesday, as policymakers had made it clear that they plan a "patient" pause in rate hikes. The central bank is taking a wait-and-see approach to further tightening in the face of a global economic slowdown, US federal government shutdown, trade tensions and waning business and consumer confidence. Adding to investor caution is the start of a crucial round of Sino-US trade talks on Wednesday and Thursday. Philippine shares fell as much as 1.7% on profit-taking before recovering partially to close 0.9% lower. "We are seeing sales of shares of companies with large institutional following, investors are now being cautious about what will happen in the US Fed meeting," said Rachelle Cruz, a research analyst at AP Securities in Manila. Cruz said a lot of funds from the profit-taking were invested in "third-liner stocks", with Premiere Entertainment emerging as one of the most actively traded stocks after a funding deal worth 15 billion pesos (US$286.67 million) with a Qatar-based investment management firm. Index heavyweights BDO Unibank Inc and SM Prime Holdings lost 2.4% and 1.5%, respectively, while Premiere Entertainment closed at its highest level since November 1997. Malaysian shares fell 0.4%, dragged by utility and basic material stocks. Effects of the Sino-US trade war were seen with data showing Malaysia's exports to China, a major trading partner, contracted 0.5% annually in December, while shipments to the United States surged 13.5%. Singapore shares closed 0.4% lower, with DBS Group Holdings and Singapore Press Holdings falling 1.2% and 2.4%, respectively. |
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