Singapore stocks jumped 1.9 percent on Tuesday but other Southeast Asian stock markets fell due to worries over the eurozone's debt problems and the implications for the global economic recovery. However, Indonesia picked up from a seven-week low, and Malaysia and Thailand also recovered from sharp losses early in the day, which analysts described as a technical rebound.
"The market is very much concerned about the eurozone debt," said a Singapore-based analyst. "But there were some technical rebounds after stocks fell, as investors believe the European Central Bank should be able find some solution to contain the crisis." Concern about the eurozone's sovereign debt troubles have rattled global markets over the past two weeks, curbing the appetite for riskier assets.
Singapore's Straits Times Index hit its highest close since January 29, led by a 2.7 percent rise in the biggest telephone firm, Singapore Telecom, and a 3 percent rise in United Overseas Bank Singapore Telecom posted an 18 percent increase in underlying third-quarter net profit, in line with analysts' forecasts.
Malaysia, which fell 0.9 percent in early trade, recovered to close just 0.1 percent down, with Public Bank leading the fall, losing 1.8 percent. The Thai index closed 0.3 percent weaker, recovering from a 1.25 percent fall early in the session amid political concerns, with a fall of 1.1 percent in PTT Exploration and Production and 1.4 percent in Siam Cement. "We will continue to see a market correction and the short-term trend is still to the downside," Kosin Sripaiboon, head of research at UOB KayHian Securities, said. "Domestic political unrest will still add to the market gloom and keep trade subdued."
The Thai government is bracing for a new round of protests in Bangkok by supporters of former premier Thaksin Shinawatra ahead of a February 26 Supreme Court verdict on whether to confiscate $2.3 billion of his family's assets. The Philippines slid 1.7 percent to its lowest since September 1, with both Bank of the Philippine Islands and property firm Ayala Land falling 4.8 percent.
"We're still having some lacklustre trading on the market as we continue to track the US," said Paul Balaoing, an analyst at PCCI Securities. Indonesia gained 0.6 percent after an early loss of 1.4 percent, pulled up by banking shares, with a 1.7 percent gain in the country's second largest lender, PT Bank Central Asia Tbk, and 1.2 percent in Bank Mandiri. Vietnam lost 1.69 percent to extend its losses to 4.2 percent in three sessions ahead of a long holiday next week, led by a 4.7 percent fall in the country's biggest firm, Vinamilk, and 2.5 percent in Vietcombank.
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