SE Asia Stocks - Indonesia hits 13-month peak; vote outcome watched

Thu Jul 10, 2014 6:58am EDT

BANGKOK, July 10 (Reuters) - Indonesia's benchmark hit an
over 13-month closing high on Thursday as foreign inflows sent
large-caps soaring, but caution remained over the outcome of
Wednesday's presidential election.
    Jakarta's composite index ended up 1.5 percent,
erasing some of its earlier 2.8 percent intra-day gain, as both
Jakarta Governor Joko "Jokowi" Widodo and ex-general Prabowo
Subianto declared themselves the election winner.
 
    Despite the uncertainty, investors appeared to be preparing
for the probability of a win for Widodo, who is perceived to be
more market-friendly.
    "We do not wait until the official outcome is out to confirm
the Jokowi victory as normally margin of error from quick count
results are 0.5-1 percent," broker Ciptadana Securities said in
a report.
    The market saw net foreign inflows worth 4.2 trillion rupiah
($363 million), the biggest daily inflow in almost four months,
while the rupiah hit a seven-week high. 
    Foreign investors bought large-caps such as Bank Mandiri
 and Semen Indonesia while shares linked to
Prabowo, such as coal miner Bumi Resources  and media
arm Visi Media Asia fell. 
    Other Southeast Asian markets mostly rose after the Federal
Reserve indicated it was in no rush to begin raising interest
rates. 
    The Thai SET index extended its gain for an eleventh
day to its highest close in thirteen months. Banking shares such
as Siam Commercial Bank were among those actively
traded ahead of April-June earnings results due from next week.
    The benchmark ended the week up 1.5 percent, notching up a
fourth week of gains. 
    HSBC raised Thailand to 'overweight' from 'underweight',
saying that political risk has subsided as the military-led 
government restores confidence, including spending powers and
setting up an economic committee to prioritise development.
    "We think consensus has been too pessimistic in cutting
corporate earnings," HSBC Global Research said in its equity
strategy third quarter 2014 report.
    The Thai stock market will be closed on Friday for a public
holiday and will resume on Monday.
        
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SOUTHEAST ASIAN STOCK MARKETS
 Change on day
 Market             Current     Prev Close    Pct Move
 TR SE Asia Index*   439.69        437.74       +0.45
 Singapore          3269.50       3275.46       -0.18
 Kuala Lumpur       1892.62       1891.16       +0.08
 Bangkok            1518.01       1507.92       +0.67
 Jakarta            5098.01       5024.71       +1.46
 Manila             6937.21       6903.79       +0.48
 Ho Chi Minh         584.88        591.60       -1.14
 
 Change on year
 Market             Current       End 2013    Pct Move
 TR SE Asia Index*   439.65        388.37      +13.20
 Singapore          3269.50       3167.43       +3.22
 Kuala Lumpur       1892.62       1866.96       +1.37
 Bangkok            1518.01       1298.71      +16.89
 Jakarta            5098.01       4274.18      +19.27
 Manila             6937.21       5889.83      +17.78
 Ho Chi Minh         584.88        504.63      +15.90
 
* The Thomson Reuters South East Asia Index is a
highly representative indicator of stocks listed in Indonesia,
Malaysia, the Philippines, Singapore, Thailand and Vietnam.
($1 = 11570.0000 rupiah)

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