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Philippine index hits more than 14-month high, Singapore up nearly 2pc

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by June 30, 2016 General

A trader works on a computer during the first day of trading for 2014, inside the Philippine Stock Exchange at the Makati financial district of Manila January 2, 2014. — Reuters picA trader works on a computer during the first day of trading for 2014, inside the Philippine Stock Exchange at the Makati financial district of Manila January 2, 2014. — Reuters picSINGAPORE, June 30 — Most Southeast Asian stocks rose today, in line with Asian peers and tracking an overnight rally on Wall Street, as markets shrugged off the impact of Britain’s stunning vote to leave the European Union.

Expectations that major central banks will ease monetary policy in the wake of Brexit have buoyed risk assets globally.

The Dow Jones industrial average rose 1.64 per cent, while the S&P 500 gained 1.7 per cent and the Nasdaq Composite climbed 1.86 per cent.

Britain’s FTSE rallied for the second day, letting the London benchmark retrace all of its losses right after the Brexit vote.

Asian shares climbed, with the MSCI’s index of Asia-Pacific shares outside Japan up 1.5 per cent at 0432 GMT.

The Philippine index rose 2.3 per cent to hit its highest since April 2015, with sentiment boosted after Rodrigo Duterte’s inauguration as president today.

Financial stocks led the gainers, with SM Prime Holdings Inc and Ayala Land Inc up 4.1 per cent and 4.9 per cent, respectively.

“Local market is seen to extend its gains following the recovery from overnight markets amid post-Brexit sell-off,” SB Equities said in a note.

“Volume is expected to remain strong on window-dressing with the end of the 2nd quarter,” coupled with positive sentiments “on the success of inauguration of president-elect Rodrigo Duterte,” it added.

Singapore stocks rose 1.8 per cent, helped by consumer service providers. The index posted its biggest intra-day percentage gain since October 2011.

United Overseas Bank rose 2.3 per cent after the city-state’s number three lender suspended its loans programme for London properties in the wake of Brexit uncertainties.

Indonesian shares were up nearly one per cent, with consumer cyclicals and basic materials leading the gainers.

“Expect JCI (Jakarta Composite Index) to remain positive today on further tax amnesty excitement,” Jakarta-based Trimegah Securities said in a note.

“Short-term investors are likely to take profit ahead of Lebaran holiday.”

The Indonesian stock market will be closed from July 4 to July 8 for end-of-Ramadan celebrations.

Indonesia’s parliament approved an amnesty bill on Tuesday that would allow low payment rates for taxpayers who declared untaxed wealth.

Indonesia’s central bank governor on Tuesday said the tax amnesty programme will help boost the country’s economic growth rate to around 5.2-5.3 per cent this year.

Thai stocks however fell slightly, led by utilities and financials. — Reuters

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