Malaysian stocks rose to their highest in nearly 2-1/2 years on Monday on optimism over domestic economic growth, while Southeast Asia's other big stock markets retreated on concerns over the global economy. Malaysia's main share index ended up 0.8 percent at the highest since February 2008, helped by expectations second-quarter economic data on August 18 will show the economy grew about 8.1 percent from a year earlier.
While that's slower than the first quarter's 10.1 percent growth, it still shows the economy in sturdy shape, drawing investors into shares with good earnings prospects such as gaming group Genting Bhd and top lender Maybank. Malaysia has been a regional stock market laggard with gains for the year of 7.7 percent, Southeast Asia's third-worst performer, followed by Singapore's 1.2 percent gain and Vietnam's 6.1 percent loss.
"We expect the Malaysian market to be buoyant despite the US and European market turbulence because there aren't many foreigners in the local market to cause a massive sell-down," said Lee Cheng Hooi, head of research for equity markets at Maybank IB in Kuala Lumpur.
Outperforming Genting rose 6.6 percent, with foreigners seen buying the stock, dealers said. It rose on Friday after its Singapore operations posted a second-quarter profit. Singapore-listed Genting surged 8.2 percent.
Maybank rose 2.9 percent on expectations of positive fourth-quarter results scheduled for August 20. Major stock markets, including Singapore, Indonesia and Thailand, were weaker as soft US economic figures and escalating risk aversion took a toll. Singapore edged down 0.2 percent, Indonesia, Asia's best performing bourse this year, recovered from early losses to end almost unchanged. Jakarta will be shut on Tuesday for a national holiday and trading will resume on Wednesday.
Thailand slid 0.2 percent upon resuming trade after a four-day holiday. Big-cap banks fell, with top lender Bangkok Bank and third-ranked Kasikornbank each falling more than 2 percent.
In Jakarta, coal miner Bumi Resources fell 5.7 percent and its peer Adaro Energy was down 1.2 percent. In Singapore, Singapore Telecommunications, Southeast Asia's largest telecoms firm, fell 2.6 percent to S$2.96, having hit S$2.95, the lowest since June 11.
Broker Citi Investment Research cut the stock's target price to S$3 as it reduced its earnings forecast for 2011 and 2012 by 2-5 percent, in part due to lower contributions from foreign affiliates.
Philippines edged up 0.3 percent, reversing its early drop to a two-week low, led by a 4.3 percent rise in Metropolitan Bank & Trust Co, the country's second-biggest bank in terms of assets. Ayala Land Inc, the country's biggest property developer, was up 2 percent.
Vietnam, which fell to a 7-month intraday low on Friday, gained 2.7 percent, as investors scooped up recently beaten shares, with steel firm Hoa Phat Group and Saigon Securities each gained about 5 percent. Inflows to Southeast Asia were generally positive, with Jakarta, Bangkok and Manila recording net foreign buying on the day, according to Thomson Reuters data.