SE Asia Stocks-Higher tracking Asia, Indonesia snaps losing streak
BANGKOK, Aug 27 (Reuters) - 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 inflation. "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 31, 2013. 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 said. "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. For Asian Companies click; For South East Asia Hot Stock reports, click; 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)
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