BANGKOK, Feb 8 – Southeast Asian stock indexes rose today as strong oil and metal prices bolstered commodities-related shares, and on hopes the Greece would agree to a reform deal that would open the way for a new international rescue package.
Indexes in Singapore, Malaysia and Thailand all reached to six-month highs. Singapore rose 0.8 per cent, Malaysia gained 0.9 per cent and Thailand climbed 1.4 per cent.
The Philippines index ended up 1.1 per cent, still hovering below an all-time high set early in the week.
Indonesia’s index was up 0.8 per cent while Vietnam’s index jumped 2.1 per cent.
Throughout the region, investors bought commodities-related stocks such as Singapore’s Golden Agri Resources Ltd, Malaysia’s Sime Darby Bhd, Thailand’s Indorama Ventures Pcl as US crude futures gained US$1 today.
Brokers in the region said easing risk aversion spurred funds to buy risky assets. Energy-related stocks were among the most actively traded and outperformed most other sectors.
“Global funds that have been underinvested pulled money in again. It’s more a rotational play today and energy was picked as it was a laggard,” said Bangkok-based Viwat Techapoonphol, strategist at Tisco Securities.
Shares of Golden Agri climbed 2.6 per cent to their highest in more than one year, Sime Darby rose 2.3 per cent to the highest in almost three years, Indorama surged 10.07 per cent to five-month highs.
Among bright spots, Philippine Energy Development Corp was up 0.4 per cent and Indonesia’s PT Indo Tambangraya Megah gained 4.6 per cent.
Emerging Southeast Asian stock market – many of which have posted solid gains this year – have become attractive thanks to the resilience of regional economies and as optimism about global recovery has lured funds into risk assets again.
The global emerging economies are still resilient compared to most western countries, according to Aberdeen Asset Management.
Policy flexibility and the downtrend of inflationary pressures in emerging regions were making companies and equity valuations in these countries increasingly attractive, said Adithep Vanabriksha, Aberdeen’s chief investment officer in Thailand.
The US$9.8 billion Aberdeen Global-Emerging Markets Equity Fund has added financial equities to its portfolio, with some recently acquired shares including Thailand’s Siam Commercial Bank Pcl.
By 1022 GMT, MSCI’s broadest index of Asia Pacific shares outside Japan was trading up 1.37 per cent while the MSCI index for Southeast Asia, made up of selected stocks, was trading up 1.36 per cent. – Reuters
