Most Southeast Asian stock markets gained on Wednesday amid optimism about the regional economy, with Indonesia hitting a record high and Thailand around two-year highs following record export numbers for June. Investors were still cautious over results for European bank stress tests due out on Friday, one reason for late retreats by equities in the region, dealers said. Malaysia edged up 0.25 percent to 10-week highs and the Philippines gained 0.38 percent, ending a four-day fall.
Most SE Asian stocks up Singapore fell 0.8 percent after hitting an 11-week high while Vietnam ended 0.23 percent lower. Singapore's third-largest developer, Keppel Land, fell 0.7 percent after it reported a 20 percent rise in its second-quarter net profit, in line with expectations.
In Thailand, Bangkok Bank, the biggest lender, gained 2.6 percent while number two Krung Thai Bank rose 0.8 percent after they posted quarterly earnings that beat expectations. Number two mobile phone operator Total Access climbed 5.8 percent after it reported better-than-expected quarterly earnings due to strong data growth, prompting earnings upgrades, amid expectations it would benefit from upcoming 3G licence awards. Singapore-listed Total Access shares rose 3.3 percent.
Analysts are hopeful on the outlook for Thai bank earnings for the second half amid positive sentiment on the broad market after Thai exports rose 46 percent in June from a year earlier to a record value of $18.04 billion. "In the second half of 2010, given the strong outlook for domestic consumption and private investment, and also the gradual rise in interest rates, the earnings outlook for big banks should remain resilient," said KGI Securities strategist Rakpong Chaisuparakul.
In Kuala Lumpur, Public Bank, the country's third-largest lender by assets, eased 0.5 percent to 12.14 ringgit, retreating from gains early in the day and on Tuesday after it reported a 20 percent rise in second-quarter earnings. "While management continues to demonstrate strong ability to execute strategies and deliver good results, in our view share price performance will lag other banks due to a rich fiscal year 2010 estimated price to book of 3.4 times," Broker Citi said, cutting its price target slightly to 11.35 ringgit from 11.37.
In Jakarta, the index rose to 3,013.40, topping a previous record hit on May 4 this year, as investors bought banks and consumer firms, attracted by strong economic growth, increasing domestic demand and political stability. Among gainers, Bank Rakyat Indonesia, the second-biggest lender, rose 2 percent and Bank Danamon, the sixth-largest lender, was up 1.8 percent.