SE Asia Stocks-Cautious as risk appetite seen recovering after Brexit shock

viernes 1 de julio de 2016 01:44 GYT

By Krishna V Kurup
    July 1 (Reuters) - Most Southeast Asian stocks were cautious
on Friday as the Bank of England raised more hopes of monetary
easing that is expected to further improve risk appetite which
had slumped following Britain's shock exit from the European
Union last week. 
    Gains on Wall Street overnight were propelled in part after
BOE Governor Mark Carney said the central bank would probably
need to pump more stimulus into Britain's economy over the
summer in wake of the Brexit shock. 
    The impact on the United States of Britain's vote to leave
the European Union was "statistically in the neighbourhood of
zero" although there was uncertainty around the outcome, said 
St. Louis Federal Reserve Bank President James Bullard on
Thursday, sticking to his view of a single increase to interest
rates by the U.S. central bank this year. 
    Central banks in Southeast Asia are also on wait and watch
mode after the Brexit vote, with Indonesia's central bank saying
earlier this week that it has room to loosen monetary policy
again as inflation is within its range. 
    Malaysia's central bank said on Thursday that markets have
been resilient after the Brexit referendum as key domestic
markets continue to have ample liquidity, adding that it would
monitor developments to address further volatility. 
    A combination of greater policy easing and lower DM
(developed markets) growth expectations is favourable for ASEAN
countries, said Nomura in a note. In a post-Brexit environment
with greater policy accommodation, ASEAN should continue to
outperform, it said.
    "...effects of the Brexit have mostly waned in the Asian
markets," said Grace Aller, an analyst with AP Securities in
    The Philippine index rose nearly 1 percent as 
sentiment was boosted after the inauguration of Rodrigo Duterte
as president on Thursday.
    Financial and consumer cyclical stocks led the gainers, with
BDO Unibank Inc rising 2.2 percent and SM Investments
Corp gaining 3.3 percent.
    The index hit a more than 14-month high on Thursday and
gained 7.4 percent in the April-June quarter.
   "Investors are bullish about Duterte's incoming
administration as he had a lot of changes in mind, and
anticipate that he will be able to fast-track all of his plans,"
Aller said.
    Indonesian shares fell 0.6 percent, with the index
touching its highest since June 2015 in early trade. Kalbe Farma
Tbk PT was down nearly 2 percent.
    "We expect JCI to trend lower today from profit-taking,
however downside is limited as reinforced investor confidence
post the approval of tax amnesty should keep fund flows
positive," said Taye Shim, an analyst with Jakarta-based Daewoo
    The Jakarta Composite Index gained 3.5 percent in the
April-June quarter.
    Malaysian shares fell marginally, with consumer
cyclicals dragging the index down. Genting Bhd lost
1.6 percent.
    The Thai market was closed on Friday for the
mid-year closing day.
    For Asian Companies click;  

  STOCK MARKETS                                             
  Change at 0437 GMT                                        
  Market                Current       Prev close   Pct Move
  Singapore             2840.49       2840.93      -0.02
  Bangkok               1444.99       1442.66      0.16
  Manila                7873.26       7796.25      0.99
  Jakarta               4988.332      5016.647     -0.56
  Kuala Lumpur          1649.16       1654.08      -0.30
  Ho Chi Minh           638.37        632.26       0.97
  Change on year                                   
  Market                Current       End 2015     Pct Move
  Singapore             2840.49       2882.73      -1.47
  Bangkok               1444.99       1288.02      12.19
  Manila                7873.26       6952.08      13.25
  Jakarta               4988.332      4593.008     8.61
  Kuala Lumpur          1649.16       1692.51      -2.56
  Ho Chi Minh           638.37        579.03       10.25
 (Reporting by Krishna V Kurup in Bengaluru; Editing by Biju