BANGKOK, Nov 6 — Most major Southeast Asian stock markets rose today, with solid earnings from DBS, Thai Oil and others providing support in Singapore and Thailand, and blue chips elsewhere coming off recent lows.
Fewer jobless claims in the US and estimate-beating results prompted most markets in the region to rise over 1 per cent, with Thailand gaining 2.5 per cent and Singapore up 1.1 per cent, both hitting their highest levels of the week.
Financial stocks in the city-state led the rally after DBS Group, Southeast Asia’s biggest lender, rose over 3 per cent after beating market expectation with a 49 per cent rise in quarterly profit.
Number two lender United Overseas Bank and third-ranked Oversea-Chinese Banking Corp, which topped market estimates earlier, shot up about 2 per cent each. With global interest rates still at exceptionally low levels, analysts say investors still have reason to buy.
“We are on the verge of an earnings recovery that may not be fully discounted by investors yet,” Citigroup Global Equity Strategist said in a research note. By 0941 GMT, futures on the Dow Jones were up 0.09 per cent and the MSCI Asia Pacific index ex-Japan added 1.9 per cent.
Sentiment in Thailand picked up after Thai Oil posted stronger-than-expected profit thanks to the absence of inventory losses in the quarter. Its shares ended up 4.3 per cent at a one-week high. Advanced Info Service, Thailand’s top mobile phone operator, climbed 1.2 per cent after a better-than-expected 7.7 per cent drop in quarterly results.
In Kuala Lumpur, the index eked out a small gain of 0.5 per cent, with gaming group Genting up 1.4 per cent after a top executive said the company was on track to launch a new casino in Singapore by January next year. Shares in gaming-to-power group Tanjong surged as much as 5.7 per cent before closing 3.7 per cent higher as Citigroup said it could raise its dividend payout in the absence of new projects.
Indonesian banks led gainers in Jakarta and left the index up 1.2 per cent after touching a more-than-one-week high. Number two lender Bank Rakyat Indo was up 3.5 per cent, PT Bank Mandiri, the largest, was off 1.7 per cent and Bank Negara Indonesia rose 3.9 per cent.
The Philippines’ index lost 0.4 per cent, falling back from Thursday’s 1.3 per cent rise, weighed down by Manila Electric Co (Meralco) and First Philippine Holdings, which tumbled 12.2 and 3.5 per cent respectively. Meralco stocks slid to a one-week low after First Philippine Holdings forged a US$471 million (RM1.6 billion) deal to sell a 6.7 per cent stake in the Philippine power retailer.
In Hanoi, the main index fell 0.12 per cent on profit-taking, with Sonadezi Long Thanh Co down 5 per cent. IDICO Urban and House Development Co and Investment Commerce Fisheries Co each fell about 4.9 per cent. — Reuters
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