SE Asia Stocks - Indonesia near 4-week high as election looms

Mon Jul 7, 2014 3:25am EDT

BANGKOK, July 7 (Reuters) - Indonesia's benchmark index hit
a near four-week high on Monday as foreign inflows lifted select
large-caps such as Bank Rakyat and Telkom Indonesia
, ahead of the presidential election on Wednesday.
 
    Investors are awaiting the outcome of the July 9 election,
with a clearer political outlook looked set to revive appetite
for Indonesian assets, brokers and fund managers said.
    Dhananjay Phadnis, portfolio manager of Fidelity's FF
Indonesia Fund, said the outcome of the election is not expected
to change or affect the fund's long-term positive view on
Indonesia.
    "Despite the close race between the two leading candidates,
it is important to note that both candidates (Joko Widodo and
Prabowo Subianto) have very similar agendas," Phadnis said.
    Jakarta's composite index rose 1.2 percent to its
highest since June 11, building on a 1.3 percent gain last week,
when the market marked its first weekly gain in four.
    The Indonesian rupiah hit a five-week high on
Monday. 
    Elsewhere, the Philippine benchmark hit an over
13-month high as property shares such as Megaworld Corp 
and Ayala Land extended gains amid strong foreign
demand for condominiums. 
    The Thai index hovered around a near one-year high as
investors sought stocks seen to benefit from infrastructure
spending such as Siam Cement while banks were mixed
ahead of quarterly earnings due next week.
    Kasikornbank gained almost 1 percent and Bangkok
Bank eased 0.3 percent.
    Bangkok Bank is expected to report a 14 percent drop in
April-June net profit from last year due to slow loan growth and
weak non-interst income, broker Maybank Kim Eng Securities said
in a report.
    "Weak earnings momentum may cap BBL's upside," said
Maybank's analyst Jesada Techahusdin, rating the stock a 'hold'.
    Stocks in Singapore and Malaysia were
range-bound while shares in Vietnam rose to their highest
in almost three months. 
    
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SOUTHEAST ASIAN STOCK MARKETS
 Change at 0640 GMT
 Market             Current     Prev Close    Pct Move
 TR SE Asia Index*   435.35        432.40       +0.68
 Singapore          3278.68       3272.25       +0.20
 Kuala Lumpur       1890.81       1884.91       +0.31
 Bangkok            1504.56       1495.83       +0.58
 Jakarta            4964.59       4905.83       +1.20
 Manila             7000.44       6962.28       +0.55
 Ho Chi Minh         594.45        589.35       +0.87
 * The Thomson Reuters South East Asia Index is a
highly representative indicator of stocks listed in Indonesia,
Malaysia, the Philippines, Singapore, Thailand and Vietnam.

 (Reporting by Kaweewit Kaewjinda and Viparat Jantraprap;
Editing by Sunil Nair)
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