Asean stocks rise as Brexit worries ease
BENGALUru: Most Southeast Asian stock markets rose on Monday, in line with their Asian peers on easing Brexit concerns after several opinion polls indicated an increasing possibility of Britain opting to remain in the European Union in
a referendum later this week.
Three opinion polls ahead of Thursday’s vote showed the ‘Remain’ camp recovering some momentum, although the overall picture remained one of an evenly split electorate.
“Perception is that the British public is likely to vote in favour of remaining in the EU. If that is the case, it would remove the overhang of risk in the markets,” said Nirgunan Tiruchelvam, an analyst with Religare Capital Markets, in Singapore.
There were fears that a “no” vote would be disruptive to the markets and that seems to have dissipated, he added.
Sentiment was also boosted as oil prices rose due to a weaker dollar and easing worries over Britain’s possible exit from the EU.
Singapore shares outperformed other markets in Southeast Asia, with oil and gas stocks leading the gains. The Straits Times Index rose over 1 percent to a more than one-week high. Keppel Corp rose 1.7 percent, while Sembcorp
Marine Ltd gained 2.6 percent.
Philippine shares were headed for their fourth session of gains, driven by consumer cyclicals. Jollibee Foods Corp and SM Investments Corp were among the top performers.
“We are nearing our presidential inauguration. Things are looking more positive for the Philippines. There is a lot of hope in the incoming president,” said Joseph Roxas, an analyst with Eagle Equities.
Philippines President-elect Rodrigo Duterte, who swept to victory in a May 9 election, would take over officially on June 30.
Vietnam shares traded in positive territory, as energy stocks such as Petrovietnam Gas Joint Stock Corp rose, while Indonesia traded slightly lower.
Asian stocks rose in early trade, with MSCI’s broadest index of Asia-Pacific shares outside Japan rising 1 percent. – Reuters