Malaysian shares rose on Tuesday, hovering near 2-1/2 year highs, as earnings optimism pushed up banks and heavyweight gaming group Genting while concerns over global growth plagued other Southeast Asian bourses. Malaysia's main share index ended up 0.6 percent.
The index, which outperformed Southeast Asian bourses last week, extended gains for a third session for a combined 2.15 percent rise ahead of second-quarter GDP on Wednesday. Financial firm AMMB Holdings Bhd rose 3.4 percent to a 2-year high after its quarterly earnings rose 43 percent, while top lender Maybank gained 0.4 percent to near a 2-1/2 year high on positive expectations for fourth-quarter results due on August 20.
Genting Malaysia, Malaysia's sole casino operator, rose 6 percent while gaming firm Genting Bhd was up 2.4 percent after strong profits from its Singapore operations. But overbought Singapore-listed Genting dropped 3.8 percent, reversing a 6.3 percent rise in morning trade. Its 14-day relative strength index (RSI) was at 76.65 at the close on Tuesday, breaching the 70-plus mark that indicates overbought.
Singapore's benchmark Straits Times Index extended losses for a second session, ending 0.35 percent lower. Others in the region ended mixed, with Thailand up 0.6 percent, after slipping to a 2-week closing low on Monday. The Philippines added 0.7 percent, while Vietnam edged down 0.3 percent. See for Vietnam's report. Foreign investors bought 46 million baht ($1.45 million) in Thai shares on Tuesday, adding to net purchases of $12.5 million on Monday. Net foreign outflows this year fell to 1.9 billion baht ($59.75 million), according to stock exchange data.
Recently beaten big-cap banks gained, with the biggest Bangkok Bank up 1.1 percent and third-ranked Kasikornbank climbing 2 percent. Dealers attributed the Thai market rebound to bargain hunting thanks to relatively attractive valuations of Thai stocks. The market traded at an average 11.3 times 2010 earnings, the second-cheapest in Southeast Asia, according to Thomson Reuters StarMine.
That compares with Philippines' 12.1, Singapore's 12.8, Malaysia's 13.5 and Indonesia's 13.8. Vietnam carries the cheapest valuation in Southeast Asia, with a forward price-to-earnings ratio of 9.2, the data showed. Indonesia, which was shut on Tuesday for a national holiday, is set to resume trading on Wednesday. Jakarta is Asia's second-best performing bourse this year with net foreign inflows of $1.4 billion, according to Thomson Reuters data.