SE Asia Stocks - Malaysia set for best gains in 2 yrs after Fitch rating
BANGKOK, July 1 (Reuters) - The Malaysian index headed for its best gain in over two years on Wednesday after Fitch upgraded its credit rating outlook, while most others in Southeast Asia staged a technical rebound with investors keeping a wary eye on the Greek debt crisis. The Kuala Lumpur composite index rose as much as 1.8 percent, its biggest since May 2013, with 28 out of 30 large-caps measured by the index advancing. Fitch maintained Malaysia's long-term foreign currency issuer default rating at A- and local currency at A, with the outlook revised to stable from negative. The ratings agency also revised its outlook for Telekom Malaysia to stable from negative, sending the stock almost 3 percent higher. Near-term outlook for Malaysian stocks, however, remained weak, said broker Affin Hwang Capital. "Technically, local market is anticipated to be trapped in a two-month downtrend channel influenced by volatile currency and commodity markets," said Affin in a report. Singapore's key Straits Times Index rose 0.3 percent and Jakarta composite index was a tad higher, both continuing to recover from recent losses amid the Greek crisis. Sentiment appeared cautiously optimistic that the Greek situation could have a contained effect. "As stock prices nurse their recent declines, traders will be keeping a wary eye on developments from Greece, especially the referendum vote this Sunday," said Singapore-based broker NRA Capital in a report. Stocks in the Philippines traded down 0.5 percent, after the falls on Monday and Tuesday, while Vietnam edged up 0.15 percent by the mid-day break after two straight gains this week. The Thai stock market was closed for the mid-year bank holiday, and will reopen on Thursday. It slipped to near a key 1,500 support level on Tuesday as investors trimmed risk holdings partly due to weak economic indicators in May. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS Change at 0521 GMT Market Current Prev Close Pct Move Singapore 3329.21 3317.33 +0.36 Kuala Lumpur 1737.20 1706.64 +1.79 Jakarta 4914.96 4910.66 +0.09 Manila 7530.08 7564.50 -0.46 Ho Chi Minh 593.92 593.05 +0.15 (Reporting by Viparat Jantraprap; Editing by Prateek Chatterjee)
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