By Arundhati Dutta
June 10 (Reuters) - Philippine stocks sank more than 3% on
Wednesday as investors worried a proposed $26 billion stimulus
package was running into political trouble, while Indonesian
markets plunged after a surge in the number of new coronavirus
cases.
The Philippines main index .PSI fell to its lowest in
nearly a decade in March, as it joined dozens of countries in
imposing a strict lockdown. It has gained back about 60% since
as the measures were eased and markets globally recovered.
The latest signs on the domestic economy showed imports and
exports both sinking by more than 50% in April, an indication of
the scale of the collapse in output under the lockdowns.
Local media https://news.mb.com.ph/2020/06/09/dof-house-approved-%E2%82%B11-3-trillion-stimulus-package-unconstitutional
also reported that the Department of Finance (DOF) had judged a
proposed 1.3 trillion peso ($26.09 billion) stimulus package
which has already been passed by the House of Representatives
was "unconstitutional".
"This (selling) is healthy. Everyone is waiting for the
correction. We need a breather," said Luis Limlingan of Regina
Capital, referring to Philippine markets.
Financial stocks such as Security Bank Corp SECB.PS and
BDO Unibank Inc BDO.PS were among the top losers on the index.
In Indonesia, the daily coronavirus case count breached the
1,000 mark for the first time, sending the benchmark .JKSE
down more than 2.4%, with financials accounting for over half
the losses. PT Bank Central Asia Tbk BBCA.JK fell
2%.
"There are some concern that Indonesia could face a second
wave in number of cases, " said Andry E. Taneli, a portfolio
manager at Ciptadana Asset Management in Jakarta.
"Indonesian stocks have gained around 13% in the past two
weeks, so I expect to see some correction."
Singapore .STI , Thai .SETI and Vietnamese .VNI markets
all tracked bigger global markets to trade in positive territory
for the day, up by between 0.2% and 0.7%.
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SOUTHEAST ASIAN STOCK MARKETS AS T 0605 GMT
STOCK MARKETS
Change on the
day
Market Current Previous Pct Move
close
Singapore 2799.52 2794.17 0.19
Bangkok 1417.84 1408.37 0.67
Manila 6439.37 6583.84 -2.19
Jakarta 4912.748 5035.055 -2.43
Kuala Lumpur 1573.38 1575.16 -0.11
Ho Chi Minh 901.09 899.43 0.18
Change so far
in 2020
Market Current End 2019 Pct Move
Singapore 2799.52 3222.83 -13.13
Bangkok 1417.84 1579.84 -10.25
Manila 6439.37 7,815.26 -17.61
Jakarta 4912.748 6,299.54 -22.01
Kuala Lumpur 1573.38 1588.76 -0.97
Ho Chi Minh 901.09 960.99 -6.23