SE Asia Stocks: Firmer; Spain’s debt woes cut volume

June 19, 2012

Brokers at the Jakarta Stock Exchange. - Reuters picSINGAPORE, June 19 – Southeast Asian stock markets gained today with Malaysia hitting a two-month high, but renewed concerns over the euro zone trimmed volumes.

Malaysia gained 0.8 per cent with a US$13.28 million (RM41.96 million) in foreign inflows, while Singapore and Thailand added 0.6 per cent and 0.8 per cent respectively, while the Philippines rose 0.6 per cent.

Optimism over a possible solution to Greece’s debt crisis eroded as concerns over Spain’s borrowing cost hit investor appetite for risky assets.

“Markets are still likely to remain choppy for a while,” said Chang Chiou Yi, a regional strategist at CIMB-GK Research.

Indonesia ended 0.5 per cent firmer despite US$5.2 million net in foreign selling.

“I think the policy risk concerns on Indonesia is overplayed,” she said. “The market is domestically driven with solid earnings growth and should hold up well. Even in global growth weakness, the Indonesian market has its own demand support.” – Reuters