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SE Asia Stocks-Indonesia sags on slowdown worries; most others up on trade hopes

Published 09/24/2019, 06:00 PM
Updated 09/24/2019, 06:10 PM
SE Asia Stocks-Indonesia sags on slowdown worries; most others up on trade hopes
STI
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JKSE
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SETI
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PSI
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ASII
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BBCA
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MEG
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SMPH
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* Indonesia falls for fourth session, hits 7-week low
* Philippines snaps five-session losing streak
* Thailand edges up ahead of central bank decision

By Anushka Trivedi
Sept 24 (Reuters) - Indonesian shares fell over 1% on
Tuesday, extending losses into a fourth session amid fears of an
economic slowdown, while most other Southeast Asian markets
inched higher after U.S. officials confirmed trade talks with
China would start next month.
The benchmark Jakarta stock index .JKSE has declined 2.2%
in the past four sessions after the central bank warned of its
economy taking a hit from the global economic slowdown, and said
it expected 2019 growth below the midpoint of 5%-5.4%.
DBS analysts said they expected growth in Southeast Asia's
second-biggest economy to soften in the second half, citing
recent decline in several key indicators such as cement sales,
manufacturing activity and credit growth.
Financial and consumer stocks accounted for most of the
losses, with Bank Central Asia Tbk PT BBCA.JK dropping 1.3%,
while infrastructure developer Astra International Tbk PT
ASII.JK slumped 2.3%.
Other markets in the region received a lift from an improved
Sino-U.S. trade tone, but gains were capped as downbeat business
activity figures from the euro zone, merely two weeks after the
European Central Bank announced stimulatory measures, dented
sentiment. "Trade issues are going head to head with central bank
stimulus and investors are once again left trying to figure out
which play will come out on top," said Nick Twidale, director &
co-founder at Xchainge.
Trade war developments are expected to become the
centrepiece over the next few sessions, he added.
Singapore stocks .STI , among the most exposed to trade
tensions, tacked on 0.4% on financials.
Thai .SETI and Philippine shares .PSI advanced on hopes
of rate cuts by their respective central banks this week.
The Thai central bank is set to meet for a policy review on
Wednesday, where chances of policy easing were solidified after
factory output data for August came in well below expectations,
according to analysts at ING. Meanwhile, Philippine shares snapped a five-day losing
streak, driven by property developers such as SM Prime Holdings
SMPH.PS and Megaworld Corp MEG.PS .
The market is pricing in a rate cut by Bangko Sentral ng
Pilipinas on Thursday and hence buying in interest
rate-sensitive stocks, said Jeffrey Lucero, an equity analyst at
RCBC Securities.


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SOUTHEAST ASIAN STOCK MARKETS

Market Current Previous close Pct Move
Singapore 3155.46 3143.24 0.39
Bangkok 1630.5 1622.79 0.48
Manila 7893.94 7867.51 0.34
Jakarta 6137.608 6206.199 -1.11
Kuala Lumpur 1592.33 1592.93 -0.04
Ho Chi Minh 988.13 985.75 0.24

Change so far in 2019
Market Current End 2018 Pct Move
Singapore 3155.46 3068.76 2.83
Bangkok 1630.5 1563.88 4.26
Manila 7893.94 7,466.02 5.73
Jakarta 6137.608 6,194.50 -0.92
Kuala Lumpur 1592.33 1690.58 -5.81
Ho Chi Minh 988.13 892.54 10.71

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