SE Asia Stocks-Mild rebound, Thai bank stocks in favour | Reuters
SE Asia Stocks-Mild rebound, Thai bank stocks in favour | Reuters
* Thai Kasikornbank ends higher ahead of strong Q3 results
* Indonesia sees biggest outflows of the year
By Viparat Jantraprap
BANGKOK, Oct 19 (Reuters) - Most Southeast Asian stock
markets rose on Tuesday as investors bought into growing
sectors but the region saw some foreign money flow out despite
the prospect of further U.S. monetary easing.
With the results season for Southeast Asian firms
beginning, Thailand .SETI clawed back from a one-week low on
Monday thanks to buying in banks, while the indexes of
Singapore .FTSTI, Malaysia .KLSE and Indonesia .JKSE eked
out small gains.
Despite the gain, Jakarta recorded $147.7 million in
outflows on the day, the biggest this year, according to
Thomson Reuters data.
Thailand's benchmark SET index finished up 0.53 percent at
989.27, still having trouble moving through the 1,000 level
that was within sight last week for the first time since the
1997-98 Asian financial crisis.
"Sentiment lifted up a bit because of the earnings season
for banks. I think the earnings plays will be more active in
coming weeks," said Chaiyaporn Nompitakcharoen, head of
research at Bualuang Securities.
The Thai bank subindex .SETB rose 0.9 percent, led by a
1.7 percent rise in the third-largest bank Kasikornbank Pcl
(KBAN.BK). After the close, the bank reported
better-than-expected third quarter earnings of 5.09 billion
baht.
Turnover in Bangkok fell to a one-week low of 27.8 billion
baht ($931.6 million).
Investors were cautious ahead of a review of interest rates
by the Bank of Thailand on Wednesday, with expectations growing
it would keep the policy rate at 1.75 percent in a bid to slow
inflows and take some of the upward pressure off the baht.
The U.S. dollar was steady in Asia on Tuesday, supported by
a pledge from Washington not to devalue its way to recovery,
but weakness in the technology sector held Asian stock markets
back.
The MSCI index of Asia Pacific stocks outside Japan
.MIAPJ0000PUS was down 0.05 percent by 0933 GMT.
Bucking the trend in Southeast Asia, the Philippines .PSI
extended its losses to a near-one-week low while Vietnam .VNI
hit its lowest in two weeks.
Sentiment across the region dropped after Morgan Stanley
(MS.N) reduced its overweight rating on equities to 4 percent
from 6 percent and raised the cash weight on its Asia/Global
Emerging Market strategy, according to Bualuang's Chaiyaporn.
Valuations in the region now look a bit stretched after the
strong rise in the second half. Southeast Asian stock indexes
are trading at relatively high forward price-to-earnings
ratios, led by Indonesia's 15.6, according to Thomson Reuters
StarMine.
In Singapore, medium-caps led gainers, with casino operator
Genting Singapore Plc (GENS.SI) rising 2.4 percent, while in
Malaysia financial firm RHB Capital Bhd (RHBC.KL) jumped 2.3
percent.
In Jakarta, PT Bank Central Asia (BBCA.JK), Indonesia's
biggest lender by market value, rose 2.3 percent after falling
to a three-week low the day before.
In the Philippines, Manila Electric Co (Meralco) (MER.PS),
the country's largest power retailer, dropped 3.2 percent to a
three-week low.
* Thai Kasikornbank ends higher ahead of strong Q3 results
* Indonesia sees biggest outflows of the year
By Viparat Jantraprap
BANGKOK, Oct 19 (Reuters) - Most Southeast Asian stock
markets rose on Tuesday as investors bought into growing
sectors but the region saw some foreign money flow out despite
the prospect of further U.S. monetary easing.
With the results season for Southeast Asian firms
beginning, Thailand .SETI clawed back from a one-week low on
Monday thanks to buying in banks, while the indexes of
Singapore .FTSTI, Malaysia .KLSE and Indonesia .JKSE eked
out small gains.
Despite the gain, Jakarta recorded $147.7 million in
outflows on the day, the biggest this year, according to
Thomson Reuters data.
Thailand's benchmark SET index finished up 0.53 percent at
989.27, still having trouble moving through the 1,000 level
that was within sight last week for the first time since the
1997-98 Asian financial crisis.
"Sentiment lifted up a bit because of the earnings season
for banks. I think the earnings plays will be more active in
coming weeks," said Chaiyaporn Nompitakcharoen, head of
research at Bualuang Securities.
The Thai bank subindex .SETB rose 0.9 percent, led by a
1.7 percent rise in the third-largest bank Kasikornbank Pcl
(KBAN.BK). After the close, the bank reported
better-than-expected third quarter earnings of 5.09 billion
baht.
Turnover in Bangkok fell to a one-week low of 27.8 billion
baht ($931.6 million).
Investors were cautious ahead of a review of interest rates
by the Bank of Thailand on Wednesday, with expectations growing
it would keep the policy rate at 1.75 percent in a bid to slow
inflows and take some of the upward pressure off the baht.
The U.S. dollar was steady in Asia on Tuesday, supported by
a pledge from Washington not to devalue its way to recovery,
but weakness in the technology sector held Asian stock markets
back.
The MSCI index of Asia Pacific stocks outside Japan
.MIAPJ0000PUS was down 0.05 percent by 0933 GMT.
Bucking the trend in Southeast Asia, the Philippines .PSI
extended its losses to a near-one-week low while Vietnam .VNI
hit its lowest in two weeks.
Sentiment across the region dropped after Morgan Stanley
(MS.N) reduced its overweight rating on equities to 4 percent
from 6 percent and raised the cash weight on its Asia/Global
Emerging Market strategy, according to Bualuang's Chaiyaporn.
Valuations in the region now look a bit stretched after the
strong rise in the second half. Southeast Asian stock indexes
are trading at relatively high forward price-to-earnings
ratios, led by Indonesia's 15.6, according to Thomson Reuters
StarMine.
In Singapore, medium-caps led gainers, with casino operator
Genting Singapore Plc (GENS.SI) rising 2.4 percent, while in
Malaysia financial firm RHB Capital Bhd (RHBC.KL) jumped 2.3
percent.
In Jakarta, PT Bank Central Asia (BBCA.JK), Indonesia's
biggest lender by market value, rose 2.3 percent after falling
to a three-week low the day before.
In the Philippines, Manila Electric Co (Meralco) (MER.PS),
the country's largest power retailer, dropped 3.2 percent to a
three-week low.
