Thread: Indonesia shares dive to over 4-month low, SET loses again

Bangkok Post
25 Apr 2018
WRITER: BANGKOK POST AND REUTERS



A man sits inside the trading floor of the Indonesia Stock Exchange building in Jakarta on Jan 16, 2018. Indonesian shares on Wednesday plunged to the lowest level since mid-December. (Reuters file photo)

Indonesian shares plummeted to their lowest since mid-December on Wednesday, while the Stock Exchange of Thailand closed below 1,7800 points, as a rise in US bond yields to a multi-year high triggered a sell-off in riskier assets.

The Jakarta stock exchange, which ended down 2.4%, saw its steepest loss in a day since November 2011, dragged down by financials. Investors are slowly reducing US dollar-funded carry trades in emerging markets after a broad rally of the benchmark currency was fuelled by worries over inflation and bond supply in the United States and a subsequent spike in Treasury yields.

US benchmark 10-year Treasury yield rose to 3% for the first time in more than four years on Tuesday.
Foreign investors have been dumping riskier assets and the outflow in April was close to 7 trillion rupiah, said Taye Shim, head of research at Mirae Asset Sekuritas.

"I think primarily the key reason is that the central bank of Indonesia is maintaining a stubbornly low dovish stance in terms of their monetary policy," he said. Indonesia's index of 45 most liquid stocks fell 3.2%.

The SET main index shredded 8.68 points or 0.49% to close at 1,779.52, in trade worth 65 billion baht. Kasikornbank Plc was among the losers, falling 4.50 baht or 2.31% to end the day at 190 baht.

Philippine shares closed at their lowest in over a year as industrials weighed on the index. Index heavyweight SM Investments Corp, which was the biggest drag with a 1.4% fall.

Industrials and financials dragged the Singapore stock exchange 0.5% lower. The city-state's biggest lender DBS Group Holdings shed 0.7%, while Keppel Corporation slipped as much as 3.2%.

Malaysian shares fell 0.7% to close at their lowest in over two weeks as financials faltered. Public Bank Bhd fell as much as 1.2%.

The Vietnam markets were closed for a holiday.

Southeast Asian stock markets
	Current	Previous	% change
Thailand	1,790.52	1,788.20	-0.49
Indonesia	6,079.85	6,229.63	-2.40
Malaysia	1,851.93	1,865.37	-0.72
Philippines	7,557.91	7,600.36	-0.56
Singapore	3,568.01	3,584.56	-0.46
Vietnam			Closed for holiday

https://www.bangkokpost.com/business...et-loses-again

Indonesia stocks still plummet, SET ends lower

Bangkok post
26 Apr 2018
WRITER: BANGKOK POST AND REUTERS



The Stock Exchange of Thailand index eases 0.36% to close at 1,773.20 on Thursday. (Bangkok Post file photo)

Indonesian and Vietnam stock markets plunged, while the Stock Exchange of Thailand slid on Thursday, as rising US treasury yields and a stronger dollar prompted foreign investors to trim holdings in emerging market equities.

Benchmark US Treasury 10-year yield edged above 3% on Wednesday and may likely reach levels last seen in mid-2011.Indonesian stocks slumped 2.8% in their fifth straight session of losses, bringing their year-to-date losses to 7%. The country's index of 45 most liquid stocks dropped 3.6% in the session.

Bank Central Asia fell 1.8%, while Telekomunikasi Indonesia (Persero) Tbk Perusahaan Perseroan slid 3.4%. The rupiah has depreciated nearly 5% against the US dollar since late January as a broad rally in the greenback triggered capital outflows. The country's central bank intervened by buying sovereign bonds and selling foreign currency to arrest the rupiah's fall.

The Indonesian rupiah yield curve's sharp flattening suggests a build-up of rate-hike expectations, Standard Chartered said in a note. The Indonesian central bank has kept key interest rates unchanged for the past seven months.

"It's a tricky situation for the government and the central bank as they have to contemplate whether to focus on growth or stability," said Taye Shim, head of research at Mirae Asset Sekuritas.

The SET main index shredded 6.32 points or 0.36% to close at 1,773.20, in trade worth 48.64 billion baht. PTT Plc closed at 56.50 baht, down 1 baht or 1.74% and Siam Cement Plc plunged 6 baht or 1.27% to 468 baht.

Vietnam stocks also plummeted 3.3% to their lowest close in more than two months as financials and utilities weighed on the benchmark.Petrovietnam Gas Joint Stock Corp was the biggest drag on the index, falling as much as 7%, its biggest intraday drop in over two years.

Philippine shares reversed earlier losses in the session to close 0.8% higher, buoyed by real estate stocks. Index heavyweight Ayala Land Inc rose 3%, while JG Summit Holdings Inc gained 3.8%.

Southeast Asian stock markets
	Current	Previous	% change
Thailand	1,773.20	1,779.52	-0.36
Indonesia	5,909.19	6,079.85	-2.81
Malaysia	1,852.27	1,851.93	+0.02
Philippines	7,617.42	7,557.91	+0.79
Singapore	3,570.02	3,568.01	+0.06
Vietnam	1,044.86	1,080.74	-3.32

https://www.bangkokpost.com/business...set-ends-lower

Some countries need to accept their position in life, otherwise bad things can be arranged.