Philippines extends rise; Indonesia gives up early gains

-A +A

(Aug 7): Philippine shares rose for a third straight session on Monday and outperformed other Southeast Asian markets, while Indonesian stocks reversed early gains to close lower following disappointing gross domestic product data.

Indonesia's GDP grew more slowly than expected in the second quarter as private consumption remained lethargic, adding to signs that Southeast Asia's largest economy is stuck in a low gear and may need more stimulus.

"Weaker-than-expected second-quarter growth in Indonesia increases expectation that Bank Indonesia (BI) may resume rate cut," UOB Group said in a note.

The Jakarta SE Composite Index rose as much as 0.6% before reversing its course to close 0.5% lower.

Consumer staples and telecom stocks were the biggest losers with Hanjaya Mandala Sampoerna Tbk PT declining 2% and XL Axiata Tbk PT shedding 1.2%.

Meanwhile, Philippine shares closed 0.8% higher, with consumer and telecom stocks leading the broad-based gains.

"There seems to be some buying interest on account of anticipation of better second-quarter corporate earnings for some blue chips," said Manny Cruz, an analyst with Manila-based Asiasec Equities Inc.

Conglomerate SM Investments Corp ended 1.7% higher, while telecom company PLDT Inc rose 0.6%.

Among other Southeast Asian markets, Vietnam shares rose as much as 0.9% to their highest since February 2008, on the back of gains in energy and material stocks.

Vietnam National Petroleum Group closed 5% higher as global oil prices held near nine-week highs.

Malaysian shares rose for a fifth consecutive session, supported by gains in industrial and telecom stocks, while Singapore and Thailand ended slightly lower.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.4%.

SOUTHEAST ASIAN STOCK MARKETS
Change on day

Market              Current       Previous close  % move
Singapore           3320.67       3326.52         -0.18
Bangkok             1573.67       1578.26         -0.29
Manila              7992.27       7932.82         0.75
Jakarta             5749.292      5777.482        -0.49
Kuala Lumpur        1777.91       1774.53         0.19
Ho Chi Minh         792.98        788.68          0.55

Change on year

Market              Current       End 2016        % move
Singapore           3320.67       2880.76         15.27
Bangkok             1573.67       1542.94         1.99
Manila              7992.27       6840.64         16.8
Jakarta             5749.292      5296.711        8.54
Kuala Lumpur        1777.91       1641.73         8.29
Ho Chi Minh         792.98        664.87          19.3