SINGAPORE, Feb 21 – Most Southeast Asian stock markets edged up today as a largely priced-in package to bail out Greece gave a small boost, but concerns that the deal may solve the crisis only in the short term kept riskier assets across the region subdued.
Euro zone finance ministers sealed a US$172 billion second bailout for debt-laden Greece today that will resolve its immediate financing needs.
“No one is really running for the exit door. So it is a case of muted reaction to the news that the Greeks get to live for another 2 or 3 months,” said Song Seng Wun, a Singapore-based regional economist at CIMB-GK Research.
Banks led Indonesia to gain 0.6 per cent to its highest close since Feb. 3, while Thailand and Malaysia posted modest gains of 0.4 per cent and 0.2 per cent respectively, also helped by financials.
Singapore edged up 0.1 per cent to an eight-month high, but the Philippines pulled back from a record high, losing 0.9 per cent and Vietnam closed 0.7 per cent weaker.
MSCI’s broadest index of Asia Pacific shares outside Japan was trading up 0.1 per cent by 0919 GMT while the MSCI index for Southeast Asia, made up of selected stocks, was also up 0.1 per cent.
Jakarta saw an US$8.8 million foreign inflow and Malaysia witnessed US$9 million net offshore buying today.
John Teja, director at Jakarta-based broker Ciptadana Securities, said optimism will only be temporary. The Jakarta index closed at 4002.95 and other analysts see the resistance for the overall index at 4,025.
Shares of the biggest bank by market value, PT Bank Central Asia Tbk gained 1.5 per cent while those of PT Bank Rakyat Indonesia rose 1.3 per cent.
Indonesia-based heavy equipment manufacturer PT United Tractors Tbk closed 0.8 per cent up at record high of 29,950 rupiah after it unveiled plans to buy two coal mines in Kalimantan.
In Bangkok, analysts said investors bought cautiously ahead of tomorrow’s Constitutional Court rulings on two financial executive decrees that could affect investment.
Teerada Charnyingyong, senior strategist at Bangkok-based broker Phillip Securities, said: “If the court rules out the financial executive decree, it may impact the government’s long-term flood protection projects. Investors may lose confidence for FDI (foreign direct investment),” she said.
In Singapore, a 2.3 per cent gain by property developer CapitaLand Ltd and 1.6 per cent rise for United Overseas Bank Ltd drove the overall index.
In Kuala Lumpur, Maxis Bhd jumped 2.9 per cent after it obtained the Securities Commission’s approval for the proposed issuance of a RM2.45 billion (US$811.06 million) sukuk. – Reuters
