COLOMBO, July 19 – Expectations of strong bank results and foreign buying drove Thailand’s stock market up in high volume, but other markets in Southeast Asia were mixed today as investors worried about sovereign debt problems in the United States and Europe.
Bangkok enjoyed a net foreign inflow of US$96.7 million, the highest since July 5, Reuters data showed, as foreign investors bought into Thai stocks and helped push up the baht.
Thailand jumped 1.2 per cent to a five-week high, led by banks after the country’s third-largest lender, Kasikornbank, reported a 42 per cent rise in quarterly profit yesterday due to strong loan growth.
“That signalled a quite positive outlook for other banks’ loan growth as well,” said Teerada Charnyingyong, senior strategist at broker Phillip Securities in Bangkok.
Kasikornbank shares jumped 6.7 per cent to their highest close since April 4, while Thailand’s fourth-largest lender, Siam Commercial Bank , closed 4.3 per cent up before posting a better-than-expected 53 per cent rise in profit.
Bangkok Bank , Thailand’s largest lender, gained 3.1 per cent and Bank of Ayudhya rose 3.6 per cent.
Other markets closed mixed but the Philippines hit another record high, closing up 0.2 per cent, helped by US$11.8 million in foreign inflows. Singapore added 0.6 per cent.
Volumes were higher than the 30-day average in all the markets except the region’s smallest, Vietnam.
A foreign outflow of US$27.1 million and a correction in heavyweight stocks and banks drove Jakarta down 0.2 per cent from a record high close yesterday.
The country’s biggest listed firm and top vehicle distributor, Astra International, fell 1.5 per cent, while the biggest lender by market value, Bank Central Asia, closed 2.6 per cent weaker.
“I will still expect positive market momentum to continue due to strong second quarterly earnings amid healthy corrections,” said John Teja, director at Ciptadana Securities in Jakarta.
At 0952 GMT, both the MSCI index of Asia excluding Japan and the MSCI index of Southeast Asia stocks were up 0.4 per cent.
Malaysia closed 0.4 per cent weaker as financials fell, led by a 1.4 per cent loss in CIMB Group. – Reuters
