Most Southeast Asian stock markets gained on Thursday, with Indonesian shares recouping losses as inflows returned and as investors bought battered commodities across the region, including palm plantation stocks. Indonesia's main stock index reversed a two-day losing streak to end more than 1 percent higher, with more than 8.5 billion shares changing hands on the Jakarta stock exchange, almost two times average volume over 90 days.
Jakarta saw an inflow of nearly $20 million on the day, erasing some of the more than $80 million combined outflows over the past two sessions, Thomson Reuters data showed. Singapore and Malaysia extended gains for a second day, adding 0.7 percent and 0.5 percent respectively, while Vietnam climbed 1.2 percent to its highest in more than a week.
Sentiment in the region improved, with Asian stocks rising from 1-1/2-month lows, with buying focused in the tech and retail sectors on hopes for a busy US shopping season. Bucking the trend, Philippine shares fell for a fourth session, down 0.7 percent, and Thailand dropped nearly 1 percent, hovering below a key 1,000-mark, due to losses by top energy firm PTT amid concerns about ratings outlooks.
Bangkok had an outflow of $6.30 million, adding to the more than $120 million net outflows over the previous two sessions, Thomson Reuters data showed, amid risk aversion triggered by Korean tension. "Investors are worried about the PTT group's potential returns and the market was dragged down by its losses," said Pichai Lertsupongkij, head of sales at Thanachart Securities.
"The Thai market should trade in a range in coming sessions. I think the region has absorbed the positives and negatives at this stage like the liquidity-driven story of US quantitative easing and euro zone debt problems," he said. PTT fell 2.6 percent to a four-week low, in turnover of 3.3 billion baht, the largest turnover in the market on the day.
The selling followed a report by Moody's Investors Service which said it had placed on review for possible downgrade the A3 issuer and senior unsecured bond ratings of PTT Exploration and Production Pcl and its parent PTT. PTTEP shares fell 1.75 percent to a one-month low.
Shares in palm plantation stocks attracted interest across the region as Malaysian palm oil futures advanced for a second day on Thursday as export data signalled a strong recovery in demand at a time when heavy rain may curb production. Malaysia's second largest palm oil conglomerate, IOI Corporation, was up 0.9 percent, Singapore-listed palm oil firm Golden Agri-Resources climbed 4.2 percent and Indonesia's top palm oil firm PT Astra Agro Lestari rose 1.2 percent.