Southeast Asian stocks: Philippines, Singapore recover

04 Oct, 2018

The Philippine index snapped a three-day losing streak on Wednesday and ended more than 1 percent higher as investors picked up battered shares while Singapore hit a near eight-week closing high, helped by gains in financials and consumer stocks. The Manila index rose 1.1 percent to 7210.87, led by gains in real estate and industrial stocks. Ayala Land rose 3.1 percent while JG Summit Holdings jumped 4 percent.
"Most likely, some investors are trying to find bargains as 7,100 is expected to be a technical support level. But, the rally is not driven by fundamentals," said April Lee-Tan, head of research at COL Financial INC. Meanwhile, investors are keenly awaiting Philippines annual inflation data due on Friday. The annual inflation rate likely continued to climb in September, a Reuters poll showed, keeping pressure on the country's central bank to raise interest rates further.
"The market has been anticipating a bad number." Among other markets in the region, the Singapore index rose 0.8 percent, led by lender DBS Holdings, up 1.3 percent, and Thai Beverage, up 6 percent. Indonesian shares finished 0.1 percent lower, dragged down by consumer staples and materials sectors, as caution set in after the country's central bank governor said interest rates must be increased before the Federal Reserve raises US rates to avoid "drastic capital reversals".
The index of the country's 45 most liquid stocks was down 0.4 percent. Thai shares slid 0.4 percent while the Vietnam index fell 0.2 percent.

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