BANGKOK, Aug 27 Indonesian shares snapped three
sessions of falls on Wednesday as bargain hunting emerged in
large caps and banks while consumer-related stocks outperformed
in Thailand amid expectations of improving domestic economy and
more political stability.
Investors looked forward to a Wednesday meeting of president
elect Joko "Jokowi" Widodo and current president Susilo Bambang
Yudhoyono to discuss fuel price subsidy, which brokers said
could lead to a fuel price increase and higher
"Our sensitivity analysis shows that inflation is likely to
rise from 5 percent to 6.6 percent if fuel price is increased
from 6,500 rupiah to 8,000 rupiah a litre and markets may fall
by about 5 percent in near-term but more positive for
long-term," broker Trimegah Securities said in a report.
Jakarta's composite index was up 0.3 percent,
recovering from a 1.2 percent loss over the past three days.
Shares of Bank Rakyat Indonesia and Astra
International, among recent losers, led the rebound.
In Bangkok, shares of Bangkok Bank and retailer CP
All rose in strong volumes, bringing the benchmark
SET index to 1,569.25 at midday, the highest since May
Bank of Thailand governor Prasarn Trairatvorakul said early
on Wednesday that economic growth forecast of 1.5 percent for
this year is still "highly" possible.
The formation of a new government next month could pave the
way to government spending and domestic demand recovery, brokers
"The new cabinet should be formed by early September, on
time for the new fiscal year starting in October," broker KGI
Securities said in a report.
Other equities markets in Southeast Asia tracked Asia
higher, with Singapore rebounding from a fall on the
previous day, Malaysia rising from a flat close, the
Philippines eking out slim gains and Vietnam
hitting the highest since October 2009.
The euro came close to cracking on Wednesday as feverish
speculation of further policy stimulus in the euro zone drove
bond yields to all-time lows and lifted Asian stocks to peaks
not seen in almost seven years.
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SOUTHEAST ASIAN STOCK MARKETS
Change at 0622 GMT
Market Current Prev Close Pct Move
TR SE Asia Index* 447.27 444.82 +0.55
Singapore 3342.71 3323.02 +0.59
Kuala Lumpur 1867.67 1861.82 +0.31
Bangkok 1569.25 1560.17 +0.58
Jakarta 5163.31 5146.55 +0.33
Manila 7148.37 7146.35 +0.03
Ho Chi Minh 629.17 629.06 +0.02
* 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 Viparat Jantraprap; Additional reporting by
Fransiska Nangoy in JAKARTA; Editing by Anupama Dwivedi)