SE Asia Stocks: Indonesia up for 2nd day, region edges up
BANGKOK, June 6 – Indonesian shares jumped 3.3 per cent today, helping them post their biggest daily gains since September, while Thai shares snapped their two-session losing streak as banking shares rose after losses.
Jakarta’s Composite Index ended at 3,841.33, gaining for a second straight day as the technically oversold market lured bargain hunters.
Buying momentum has picked up, with Indonesia’s index climbing above the “oversold” mark. Its 14-day relative strength index (RSI) closed at 40.5, compared with 28.9 yesterday and 17.95 on Monday. A level of 30 or lower indicates the market is oversold.
Among advancers, shares of the world’s biggest microlender PT Bank Rakyat Indonesia surged 11.2 per cent thanks to its strong loan growth, a broker said.
The Thai SET index rose 1.7 per cent to 1,117.95, partly lifted by gains in banking shares. But dealers said the market still faced headwinds.
“This was very much a short term relief rally. I do not think we have seen the bottom of this move and I think foreign funds remain nervous both of a global slowdown and domestic political concerns,” said Andrew Yates, head of international equity sales at broker Asia Plus Securities.
Singapore’s main index was up 1.8 per cent. Stocks in Malaysia, the Philippines and Vietnam rose 0.6 per cent, 0.8 per cent and 1.3 per cent, respectively. – Reuters