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Indonesia bounces back on ratings upgrade, Philippines extends fall

by December 21, 2017 General

A moneychanger holds stacks of Indonesian rupiah notes in Jakarta, August 29, 2013. — Reuters picA moneychanger holds stacks of Indonesian rupiah notes in Jakarta, August 29, 2013. — Reuters picJAKARTA, Dec 21 — Indonesian shares rose nearly 1 per cent today, bouncing back from a drop in the previous session, after Fitch raised the country’s credit ratings by a notch to their second lowest investment grade.

The ratings agency said the direction of macroeconomic and monetary policies has made Southeast Asia’s largest economy resilient to external shocks.

The Jakarta SE Composite Index was headed for a seventh session of increases in eight with financials leading the gains.

Bank Negara Indonesia (Persero) Tbk PT gained 2.6 per cent and Bank Mandiri (Persero) Tbk PT climbed 2.4 per cent.

An index of the country’s 45 most liquid stocks rose 1.1 per cent.

Meanwhile, most other Southeast Asian stock markets were sluggish in lacklustre trade, in line with Asian peers as investors have already factored in the benefits to company bottom lines from US tax cuts.

The Republican-controlled US House of Representatives gave final approval on Wednesday to the biggest overhaul of the US tax code in 30 years, sending a sweeping US$1.5 trillion (RM6.11 trillion)tax bill to President Donald Trump for his signature.

Thai shares were slightly higher after six straight sessions of gains, on upbeat investor sentiment with customs-cleared annual exports rising for a ninth straight month in November.

Exports, a key driver of Thailand’s growth, increased 13.4 per cent in November from a year earlier, handily beating a Reuters median forecast of a 6.4 per cent rise. Philippine shares extended falls into a third session, weighed down by losses in financial and real estate stocks.

Ayala Land Inc fell 1.2 per cent, while BDO Unibank Inc dropped 0.7 per cent. Telecom company PLDT Inc declined 1.9 per cent as news of a third telecom provider to challenge the existing duopoly gains steam.

Singapore shares dropped for a sixth straight session, hitting a two-week low, dragged down by financial and real estate stocks.

Oversea-Chinese Banking Corp declined 0.9 per cent, while CapitaLand Commercial Trust dropped over 3 per cent. — Reuters