BANGKOK, June 10 Thai shares rose on Tuesday as
a rally in consumer stocks outweighed falls in telecoms shares
as True Corporation's deal with China Mobile
led to concerns of increased competition in the industry, though
some analysts said these were misplaced.
Others Southeast Asia indexes were mixed, with the
Philippines weaker after disappointing exports in April
while Indonesia rebounded from Monday's one-month
Bangkok saw sell-offs in telecoms shares, sending top mobile
phone operator Advanced Info Service as much as 3.8
percent lower and No. 2 player Total Access Communication
falling as much as 13.7 percent.
At midday, AIS was down 2.5 percent and DTAC shares dropped
5.1 percent. Broker Citi said the entry of China Mobile into
True would not in itself translate into expansion of telecoms
True Corp shares lost almost 5 percent earlier amid worries
over stock dilution after a rights issue and a private placement
to China Mobile. It rose 2.7 percent at midday as the market
weighed in the benefit of fresh funds on its financial strength.
The benchmark SET index was up 0.5 percent at
midday, led by Kasikornbank Pcl and mall operator
Strategists now expect limited market upside after a rally
since May 26, reflecting improving prospects for the Thai
economy due to the military government's policy to revive
consumption and investment.
"It seems the market needs some rest (and is) waiting for
more information on Thai macro factors," strategists at broker
KGI Securities said in a report.
Losses in Manila were led by large-caps such as SM
Investment which fell 1.7 percent after three straight
days of gains. Data showed the Philippines' April exports
fell to a three-month low.
In Jakarta, banking shares such as Bank Rakyat Indonesia
and Bank Mandiri recovered from recent
losses as investors awaited Bank Indonesia's monetary policy
The central bank is expected to keep its benchmark policy
rate unchanged on Thursday to maintain economic growth amid
growing pressure on its exports, a Reuters poll showed.
Vietnam's benchmark VN Index rose as shares of
PetroVietNam Gas gained on market talk of a likely
stake sale to foreign investors.
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SOUTHEAST ASIAN STOCK MARKETS
Change at 0711 GMT
Market Current Prev Close Pct Move
TR SE Asia Index* 427.01 426.91 +0.02
Singapore 3294.40 3305.20 -0.33
Kuala Lumpur 1865.46 1863.69 +0.09
Bangkok 1463.79 1457.30 +0.45
Jakarta 4925.28 4885.08 +0.82
Manila 6767.53 6802.73 -0.52
Ho Chi Minh 567.54 565.61 +0.34
* 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 HANOI
bureau; Editing by Sunil Nair)