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SE Asia Stocks-Mixed as grim warnings for global economy offsets Chinese rate cut

Published 04/15/2020, 05:56 PM
Updated 04/15/2020, 06:00 PM
© Reuters.

* Indonesia top loser, down 1.7%
* Philippines hits highest close in over a month, up nearly
3%
* Drop in oil prices pressuring Thai energy sector - analyst

By Arundhati Dutta
April 15 (Reuters) - Southeast Asian stocks ended mixed on
Wednesday, with losses led by Indonesia and Thailand, as
warnings of a global recession and a sharp decline in oil prices
offset a key interest rate cut by the Chinese central bank.
The global economy is expected to shrink by 3.0% this year
in a stunning coronavirus-driven collapse of activity that will
mark the steepest downturn since the Great Depression, the
International Monetary Fund said on Tuesday. However, a cut to medium-term lending rates by the People's
Bank of China and reports that several states in the U.S. are
planning to reopen for business pushed benchmark indices in
Malaysia, Vietnam and the Philippines
higher. The Indonesian benchmark .JKSE tumbled 1.7%, with
communication services and financials the top losers. PT
Telekomunikasi Indonesia Tbk TLKM.JK shed 4%.
Late on Tuesday, Indonesia's central bank announced a cut in
the amount of cash banks must hold in reserve to boost liquidity
in its virus-stricken economy, but opted to keep interest rates
steady as it awaits more stability in the rupiah. "The central bank surprised the market by maintaining its
benchmark rate. I think the decision not to cut the benchmark
rate is a worrying move amidst weakening domestic economy due to
coronavirus," said Hariyanto Wijaya, head of research at Mirae
Asset Sekuritas.
Thai shares .SETI lost 1.6%, dragged by energy stocks. PTT
Pcl PTT.BK and PTT Exploration and Production Pcl PTTEP.BK
lost 1.4% and 3.4%, respectively.
"I think it is due to profit-taking as investors shift focus
to the upcoming Q1 2020 earnings this week from the banking
sector," said Kasikorn Securities strategist Sunthorn Thongthip.
He added that a drop in oil prices was also pressuring the
energy sector.
Oil fell 5% to around $28 a barrel on Wednesday, owing to
persistent oversupply concerns. O/R
Singaporean stocks .STI closed 1.1% lower, with losses in
heavyweight financials such as the United Overseas Bank
UOBH.SI and DBS Group Holdings DBSM.SI weighing on the
index.
On the upside, Philippine equities .PSI added 2.9% and hit
their highest close in over a month. The index was boosted by
gains in big cap conglomerates such as Ayala Land ALI.PS and
Ayala Corp AC.PS .
Shares in Vietnam .VNI closed up 1.3%, with gains
underpinned by financials.
The Malaysian index .KLSE ended 1.2% higher.

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SOUTHEAST ASIAN STOCK MARKETS

STOCK MARKETS
Change on the
day
Market Current Previous Pct Move
close
Singapore 2605.56 2634.57 -1.10
Bangkok 1236.1 1256.35 -1.61
Manila 5946.05 5780.88 2.86
Jakarta 4625.905 4706.491 -1.71
Kuala Lumpur 1387.79 1371.66 1.18
Ho Chi Minh 777.22 767.41 1.28

Change so far
in 2020
Market Current End 2019 Pct Move
Singapore 2605.56 3222.83 -19.15
Bangkok 1236.1 1579.84 -21.76
Manila 5946.05 7,815.26 -23.92
Jakarta 4625.905 6,299.54 -26.57
Kuala Lumpur 1387.79 1588.76 -12.65
Ho Chi Minh 777.22 960.99 -19.12



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