Thursday 28 Mar 2024
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(April 7): Most Southeast Asian stock markets reversed course in the latter half of Friday to end higher after a US defense official said the missile strike on Syria was a "one-off", meaning it was expected to be a single attack with no current plans for escalation.

Most of the regional markets were trading lower earlier in the day after the United States fired cruise missiles at a Syrian air base.

"Geopolitical tension has put some selling pressure on the regional markets," said Manny Cruz, an analyst with Manila-based Asiasec Equities Inc.

The markets ended higher as investors took a breather after a US official played down the risks of an escalation.

However, Indonesia snapped four sessions of gains and ended 0.5% lower. Financials led the losses with PT Bank Mandiri (Persero) Tbk falling 1.8%. The index ended the week 1.5% higher, extending gains into a fourth week.

The markets are also keeping an eye on the meeting between Donald Trump and Chinese leader Xi Jinping.

"On the political front, Trump-Xi meeting is in focus. The main issue should be 1) North Korea, 2) Trades and 3) FX policies," J.P. Morgan said in a note, adding that as China has the "biggest trade imbalances with the US," the focus is now on how the US will address trade and FX policies.

Philippine stocks rose as much as 1.4% to their highest in over five months. Gains in real estate stocks helped push up the index, which ended the week 3.7% higher.

"There has been buying momentum (in the Philippines) from foreign investors which has pushed the index above the 7,700 barrier," Cruz said, adding that they have been selling relentlessly in the first quarter of the year due to a lot of political noise.

The sentiment turned positive after the Philippines economic planning minister said on Thursday that the economy is expected to expand between 6.5% and 7% in the first quarter or sooner.

Right now "we are looking forward to a GDP growth of near 7% as projected by the Philippines government", Cruz added.

Vietnam shares ended 0.7% higher at their highest since February 2008. Utilities accounted for nearly half of the gains with Petrovietnam Gas Joint Stock Corp gaining 4.4%.

Malaysia, Singapore and Thailand were up 0.1% each.

SOUTHEAST ASIAN STOCK MARKETS
Change on the day

Market              Current     Previous close   % move
Singapore           3177.27     3175.59    0.05
Bangkok             1583.53     1582.12    0.09
Manila              7583.75     7565.32    0.24
Jakarta             5653.486    5680.239   -0.47
Kuala Lumpur        1741.72     1739.56    0.12
Ho Chi Minh         727.95      723.22     0.65

Change on year

Market              Current     End 2016   % move
Singapore           3177.27     2880.76    10.29
Bangkok             1583.53     1542.94    2.63
Manila              7583.75     6840.64    10.9
Jakarta             5653.486    5296.711   6.74
Kuala Lumpur        1741.72     1641.73    6.09
Ho Chi Minh         727.95      664.87     9.5

 

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