The Philippine stock market hit another record high on Tuesday, led by demand for telecom shares due to optimism about their earnings, while Thailand rose 1.5 percent, helped by continued foreign buying. Asian stock markets overall were subdued ahead of a US Federal Reserve interest rate review later in the day but with a firmer bias after a positive lead from Wall Street overnight.
The MSCI index of Asia-Pacific shares outside Japan was up 0.6 percent at 1016 GMT. Foreign investors bought $117 million of Thai shares, the highest net inflow since March 2 and more than double the $54 million recorded on Monday, stock exchange data showed.
The Philippines, the region's best-performing market this year, saw $1.6 million in net foreign buying on the day after $44 million on Monday, while Indonesia received $12.7 million after $7.4 million in the previous session.
The Philippine index gained 0.9 percent to a record closing record high of 4,087.96. It touched a record intraday peak of 4,125.50 in the first hour of trade before profit-taking set in, analysts said. "The market correction is deserved," said Jose Mari, an analyst at Manila-based Campos, Lanuza & Company Inc.
"In terms of foreign buying it's a bullish market, but right now prices suggest that buying is not the best strategy with a price-to-earnings ratio of around 15 times. There should be a correction before re-entering." The bourse has gone into overbought territory, with the 14-day relative strength index (RSI) above 70 since September 3, Thomson Reuters data showed. The country's biggest firm, Philippine Long Distance Telephone (PLDT), gained 1.9 percent in heavy trade, while second-largest phone firm Globe Telecom, which is owned by Singapore Telecom, rose 1.2 percent. Analysts attributed the demand to hopes of better profits.
Thailand gained over 1.5 percent, led by energy and utility shares and helped by comments from the Bank of Thailand governor, who said there were no plans for special controls on foreign inflows into the bond market. The stock market has also been worried about controls to cap the baht. The index is hovering around a 14-year high but is not in an overbought zone, Thomson Reuters data showed. Market turnover improved to 26.5 billion baht ($862 million) after hitting a three-month low on Monday.
Top energy firm PTT gained 1.1 percent, while shares in Siam Cement rose 2.9 percent. Malaysia gained 0.4 percent, while Singapore's Straits Times Index gained 0.5 percent to hit a 27-month high. Shares in commodities firm Noble Group rose 8.4 percent after it agreed to acquire a US-based energy retailer for $317 million.
Shipbuilder JES International surged 56.5 percent to a 26-month high after DBS Vickers initiated coverage of the firm with a "buy" rating. Bucking the trend, Jakarta closed down for a second day, losing 0.2 percent, led by a 2.7 percent fall in index heavyweight Telekom Indonesia and a 4 percent loss in the fourth biggest lender, Bank Negara.
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