* China's exports unexpectedly rise in April
* Thailand falls to lowest in over one week
* Vietnam on track for 3rd straight session of gains
By Pranav A K
May 7 (Reuters) - Philippine shares fell on Thursday after
economic growth unexpectedly shrank in the first quarter, while
Thailand led losses in the region weighed down by heavyweight
financial shares.
The Manila bourse .PSI fell 0.6% after data showed that
gross domestic product (GDP) in the first quarter declined for
the first time since 1998 as the coronavirus pandemic shattered
domestic demand. The GDP contracted 0.2% in the quarter from the same period
last year, compared with the 3.1% expansion expected in a
Reuters poll.
While GDP contraction in the first quarter was much larger
than expected, an even steeper decline is possible in the second
quarter, said Stephen Innes, chief market strategist at AxiCorp.
The biggest drags on the Philippines index were Security
Bank SECB.PS , down 2.5%, and International Container Terminal
Services ICT.PS , which fell 3.6%, after net income
attributable fell 18% in the first quarter.
Markets seemed to shrug off positive data from China,
Southeast Asia's biggest trading partner.
China's exports came in better-than-expected in April for
the first time this year, an encouraging sign for global trade
after the COVID-19 pandemic battered demand and disrupted
manufacturing supply chains. "China trade data suggests industrial activity is coming
alive in China at a much better rate than expected," said Innes.
Leading losses in the region, Thai shares .SETI fell 0.9%
as investors returned from a market holiday.
Reinsurance services provider Thaire Life Assurance PCL
THREL.BK tumbled up to 8.8%, on tack for its worst day in more
than one month, while brokerage UOB Kay Hian Securities Thailand
UOBKH.BK gave up 5.6%.
Vietnam stocks .VNI rose 1.1%, their highest in more than
two weeks, boosted by financials and consumer staples companies.
Motor vehicles trader Saigon General Service Corp SVC.HM
and Hoa Binh Rubber HRC.HM jumped nearly 7% each and led gains
in the index.
Financial markets in Singapore, Malaysia and Indonesia were
closed on Thursday for the Buddhist holiday of Vesak day.
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SOUTHEAST ASIAN STOCK MARKETS As at 0406 GMT
Change on the day
Market Current Previous Pct Move
close
Bangkok 1266.55 1278.63 -0.94
Manila 5605.2 5639.27 -0.60
Ho Chi Minh 790.83 782.59 1.05
Change so far in
2020
Market Current End 2019 Pct Move
Singapore 2591.6 3222.83 -19.59
Bangkok 1266.55 1579.84 -19.83
Manila 5605.2 7,815.26 -28.28
Jakarta 4608.79 6,299.54 -26.84
Kuala Lumpur 1376.93 1588.76 -13.33
Ho Chi Minh 790.83 960.99 -17.71