SE Asia Stocks -Most gain; Indonesia up on election outcome hopes

Mon Jul 21, 2014 4:26am EDT

July 21 (Reuters) - Most Southeast Asian stock markets
gained on Monday on hopes of better earnings after upbeat U.S.
corporate results helped boost sentiment in the region, while
Indonesian shares traded near a 13-month high ahead of the final
election results.
    Of the 82 companies in the S&P 500 that had reported
earnings through Friday morning, 68 percent beat Wall Street's
expectations, Thomson Reuters data showed. 
    The Jakarta Composite Index was up 0.8 percent by
0705 GMT, hovering around a more than 13-month high, led by
banks.
    Analysts said the market sees Jakarta governor Joko "Jokowi"
Widodo, who is likely to be the next Indonesian president, as a
reform-minded candidate who would reduce red tape, leading to
better productivity and an improved business environment.
    By law, the Elections Commission (KPU) must announce the
result by July 22. One commissioner told Reuters there was no
need to delay the result announcement.
    "This is positive, as further delays would imply more
uncertainties for Indonesian politics and hence, the equity
market," Trimegah Securities said in a investor note.
    "Foreign investors have been buying on expectation of
Jokowi's win while local investors have been taking profit and
probably switching to deposits," with the deposit special rate
at 11 percent, Trimegah Securities said in a investor note. 
    On Sunday, a top aide of Jokowi's rival and the Indonesian
ex-general widely thought to have narrowly lost in the bitterly
contested presidential election said he will not accept the
official result until allegations of cheating are investigated.
    Trimegah Securities, however, said the possibility of the
country's constitutional court overturning the election result
is very slim and investors will instead focus on the
presidential cabinet, which the new president should announce by
October.
    The Thai index was up 0.5 percent, trading at its
highest in more than 13 months on positive outlook based on
foreign inflows though political concern over an interim
constitution and economic concerns on reforms remained, analysts
said.
    Thailand's second-largest lender Krung Thai Bank Pcl
 reported a 15.7 percent rise in second-quarter net
profit, falling short of forecasts despite increasing its loans
business and non-interest income. The shares were down 1.3 pct.
    Kitpon Praipaisarnkit, an equity strategist at Kasikorn
Securities said expectations over economic growth, better-than
-expected earnings in banks, and hopes of a temporary
constitution before end July 2014 have helped boost sentiment.
    In Manila, Philippine's snacks and beverage manufacturer
Universal Robina Corp said it was buying New Zealand
rival Griffin's Foods Ltd from Australia's Pacific Equity
Partners (PEP) for NZ$700 million ($609 million), continuing a
global rush to buy Australasian food companies. 
    Bucking the trend, Malaysia was down 0.2 percent. 
    
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SOUTHEAST ASIAN STOCK MARKETS
 Change at 0740 GMT
 Market             Current     Prev Close    Pct Move
 TR SE Asia Index*   443.37        440.81       +0.58
 Singapore          3312.74       3310.53       +0.07
 Kuala Lumpur       1869.77       1872.97       -0.17
 Bangkok            1540.43       1533.41       +0.52
 Jakarta            5125.50       5087.01       +0.76
 Manila             6874.88       6853.07       +0.32
 Ho Chi Minh         600.82        596.26       +0.76
 * The Thomson Reuters South East Asia Index is a
highly representative indicator of stocks listed in Indonesia,
Malaysia, the Philippines, Singapore, Thailand and Vietnam.    

 (Fransiska Nangoy in Jakarta and Aviel Tan in Singapore;
Editing by Anupama Dwivedi)