Monday, November 28, 2011

SE Asia Stocks-Mostly up on Europe recovery hopes

SINGAPORE (Nov 28): Major Southeast Asian markets gained on Monday in thin trade led by commodities as investors cautiously bought into risky assets on hopes euro zone leaders would unveil fresh measures to resolve their debt crisis.

However, analysts said most investors will be in a wait-and- see mood after the International Monetary Fund denied an Italian media report of it having talks with Italy about a bailout package worth up to 600 billion euro.

Shares in Singapore jumped 1.9 percent from a seven-week low, Thailand gained 1.8 percent to its highest close since Nov. 18 and Indonesia edged up 0.3 percent from a one-month low.

"The gain is mainly due to optimism over euro zone recovery, though the IMF statement slightly dented the sentiment," said Pichai Lertsupongkij, head of investment advisory for Bangkok brokerage Thanachart Securities.

Despite gains in Jakarta, led by market heavyweights and last-hour buying, it suffered a foreign outflow of $61.1 million on Monday and Philippines saw net foreign selling of $6.1 million with the overall market dropping 0.8 percent.

Bangkok also saw $24.6 million foreign outflow. MSCI's broadest index of Asia Pacific shares outside Japan jumped 2.7 percent on Monday. Commodities lifted the regional markets with Bangkok's top oil firm PTT and PTT Exploration rising 1.7 percent and 1.9 percent respectively.

Shares in Thailand's Charoen Pokphand Foods Pcl surged 8 percent to a record high, before closing 4.1 percent after the top maker of meat and feed agreed to buy Hong Kong-listed C.P. Pokphand Co Ltd for $2.12 billion.

In Jakarta the overall market was in red for the most of the day after early gain before ending 0.3 percent up with PT Astra International Tbk, Indonesia's main vehicle distributor and biggest listed company, gaining 1.5 percent.

"With rising downside risks from global market and lack of positive catalysts from the domestic side, foreign investors keep selling," said John Teja, director at broker Ciptadana Securities.

"(The) overall market just relieved somewhat as Dow futures turned positive and the European market strongly recovered."

In Singapore, property firms helped boost the market with property developers CapitaLand and City Developments rising 4.1 percent and 5.8 percent respectively. CapitaLand shares were boosted by a local newspaper report saying it may place its $5.3 billion projects in China into a real estate investment trust (REIT). - Reuters

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