Southeast Asian markets: Thailand rises most in five years

Thai shares rose 4.6 percent on Friday, the sharpest in five years, as markets stayed calm after the death of King Bhumibol Adulyadej on Thursday. The king had been unwell for much of the past year and the announcement by the palace of his passing away followed two announcements made over the past week about his deteriorating health. The Thai stock index started recovering towards the end of Thursday's trading after four sessions of falls.
"The fast money tends to sell first and then when the news is out, they rebalance their positions. They (investors) may have been shorting into this and now that the news is out they are trying to buy back," said Khiem Do, head of Asian multi-asset investments, Baring Asset Management. "But I don't think this is the end of the fall, or the uncertainty about Thailand. We have to wait and see."
Sentiment is likely to be subdued due to the demise of the revered king, said Kum Soek Ching, head of Southeast Asia research at Credit Suisse Private Banking. But she said she did not expect any significant downside from here on. "Consumer, retail and F&B are expected to underperform with more restrained spending in at least the next 30 days, but the earnings impact shouldn't be lasting," she added. For the week, the stock index declined 1.78 percent, its biggest since the week ended September 9.
Most other Southeast Asian markets gained, tracking Asian peers, as better-than-expected Chinese inflation data eased concerns about the world's second-largest economy. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.6 percent after dropping 1.1 percent on Thursday. The Manila market rose 1 percent, snapping a seven-session losing streak, but posted a weekly decline of 2.5 percent. Energy and financials led the gains, with Semirara Mining Corp gaining over 3 percent and BDO Unibank Inc rising more than 1 percent. Indonesian stocks rose over 1 percent, while Singapore and Vietnam closed slightly higher. For the week, Singapore fell 2.1 percent while Vietnam gained 0.5 percent.