Philippines shares climb on ADB report
BANGKOK: Philippine shares climbed 2.1 per cent on Wednesday after an upbeat economic report, while Indonesian stocks extended gains from the previous session as favourable trade and inflation data further lifted sentiment.
The Philippine main index closed at its intraday high of 6,330 at mid-day, after ending nearly flat on Tuesday. The index fell three per cent on Monday due to foreign-led selling.
The ADB report said the Philippines was the only country in East and Southeast Asia whose growth forecast was revised up. The country has kept pace with China to become one of the two fastest growing nations in the region this year.
Large caps with the prospect of earnings growth were among outperformers. Shares in SM Investments Corp jumped three per cent after a media report that it sought to develop a state-owned Manila Bay property for US$1.3 billion.
Jakarta’s Composite Index was up 1.4 per cent after Tuesday’s 0.7 per cent rise. Investors bought large caps, sending shares in PT Telekomunikasi Indonesia and Bank Mandiri to their highest in almost one week.
The lower-than-expected inflation data in September would be supportive for the central bank’s review of its policy next week, brokers said.
The September data was below estimates and should also help Bank Indonesia halt rate hikes for now, analysts at Bahana Securities wrote in a report.
Stocks in Thailand, Malaysia and Vietnam traded modestly higher, trimming earlier gains while Singapore drifted into negative territory after rising in early trading hours.
Trading volume was relatively thin across the region, with volume on stock exchanges of Malaysia, Thailand, Singapore and Indonesia sliding to 23-45 per cent of a full day average over the past 30 sessions.
Bangkok-based KGI Securities expected Thai stocks to take a breather after Tuesday’s 1.8 per cent gain.
"We expect foreign investors to remain sidelined as they are monitoring the length of the US shutdown and also the upcoming debt ceiling talks," the broker said in a report.-- Reuters