Mon Aug 16, 2010 6:54am EDT
* Malaysia hovers around 2-½ year high; Genting rises
* Indonesia erases early loss; market shut on Tuesday
* Thai stocks edge down; banks under selling pressure
By Viparat Jantraprap
BANGKOK, Aug 16 (Reuters) - Malaysian stocks rose to their
highest in nearly 2-½ years on Monday on optimism over
domestic economic growth, while Southeast Asia's other big
stock markets retreated on concerns over the global economy.
Malaysia's main share index .KLSE ended up 0.8 percent at
the highest since February 2008, helped by expectations
second-quarter economic data on Aug. 18 will show the economy
grew about 8.1 percent from a year earlier. [ID:nSGE67A0A4]
While that's slower than the first quarter's 10.1 percent
growth, it still shows the economy in sturdy shape, drawing
investors into shares with good earnings prospects such as
gaming group Genting Bhd (GENT.KL) and top lender Maybank
(MBBM.KL).
Malaysia has been a regional stock market laggard with
gains for the year of 7.7 percent, Southeast Asia's third-worst
performer, followed by Singapore's 1.2 percent gain and
Vietnam's 6.1 percent loss.
"We expect the Malaysian market to be buoyant despite the
U.S. and European market turbulence because there aren't many
foreigners in the local market to cause a massive sell-down,"
said Lee Cheng Hooi, head of research for equity markets at
Maybank IB in Kuala Lumpur.
Outperforming Genting rose 6.6 percent, with foreigners
seen buying the stock, dealers said. It rose on Friday after
its Singapore operations posted a second-quarter profit.
[ID:nWNAS9131] Singapore-listed Genting (GENS.SI) surged 8.2
percent.
Maybank (MBBM.KL) rose 2.9 percent on expectations of
positive fourth-quarter results scheduled for Aug. 20.
Major stock markets, including Singapore .FTSTI,
Indonesia .JKSE and Thailand .SETI, were weaker as soft
U.S. economic figures and escalating risk aversion took a toll.
Meanwhile, U.S. stocks which pointed to a weaker start on
Monday helped to dampen sentiment across Asia. The MSCI Asia
ex-Japan index .MIAPJ0000PUS had fallen 0.4 percent by 1012
GMT and U.S. stock index futures .DJUO were down 0.26
percent.
Singapore edged down 0.2 percent, Indonesia .JKSE, Asia's
best performing bourse this year, recovered from early losses
to end almost unchanged. Jakarta will be shut on Tuesday for a
national holiday and trading will resume on Wednesday.
Thailand .SETI slid 0.2 percent upon resuming trade after
a four-day holiday. Big-cap banks fell, with top lender Bangkok
Bank BBL.BK and third-ranked Kasikornbank KBAN.BK each
falling more than 2 percent.
In Jakarta, coal miner Bumi Resources (BUMI.JK) fell 5.7
percent and its peer Adaro Energy (ADRO.JK) was down 1.2
percent.
In Singapore, Singapore Telecommunications (STEL.SI),
Southeast Asia's largest telecoms firm, fell 2.6 percent to
S$2.96, having hit S$2.95, the lowest since June 11.
Broker Citi Investment Research cut the stock's target
price to S$3 as it reduced its earnings forecast for 2011 and
2012 by 2-5 percent, in part due to lower contributions from
foreign affiliates.
Philippines .PSI edged up 0.3 percent, reversing its
early drop to a two-week low, led by a 4.3 percent rise in
Metropolitan Bank & Trust Co (MBT.PS), the country's
second-biggest bank in terms of assets.
Ayala Land Inc (ALI.PS), the country's biggest property
developer, was up 2 percent.
Vietnam .VNI, which fell to a 7-month intraday low on
Friday, gained 2.7 percent, as investors scooped up recently
beaten shares, with steel firm Hoa Phat Group HPG.HM and
Saigon Securities SSI.HM each gained about 5 percent.
Inflows to Southeast Asia were generally positive, with
Jakarta, Bangkok and Manila recording net foreign buying on the
day, according to Thomson Reuters data.
(Editing by Jason Szep)
From Reuters published on Mon Aug 16, 2010 6:54am EDT