SE Asia Stocks-Buoyed by BoE stimulus; Jakarta hits 15-month high

viernes 5 de agosto de 2016 06:25 GYT

By Shashwat Pradhan
    Aug 5 (Reuters) - Southeast Asian stock markets inched up on
Friday, in line with Asian peers, after the Bank of England cut
interest rates on Thursday, and announced billions of pounds of
stimulus to soften the economic shock from the Brexit vote. 
    Acting on its chief economist's wish to use "a sledgehammer
to crack a nut", the BoE reduced interest rates by 25 basis
points to a record-low 0.25 percent.  
    BoE's first cut since 2009 was accompanied by a pledge to
buy 60 billion pounds ($79 billion) of government bonds with
newly created money over the next six months, and two new
stimulus schemes.
    "I do not think we will hit any new highs. Rallies (in
Southeast Asian markets) are not big. Most of the rate cut was
really priced in. I think if they did not cut the rates, it
would be down much, much more," said Joseph Roxas, an analyst
with Manila-based Eagle Equities.
    An overnight rally in crude oil prices also sharpened risk
appetite, while sterling nursed deep losses after sliding on
news of the BoE stimulus plan.  
    The Jakarta Composite Index rose 0.86 percent to its
highest since April 24, 2015, as data showed Indonesia's annual
economic growth accelerated more than expected to 5.18 percent
in the second quarter. 
    In April-June, Indonesia went on to post its strongest
growth in 10 quarters, prompting some economists to predict that
the country will outperform most Southeast Asian nations this
    Thai shares closed up to mark their third straight
session of gains, aided by financial and telecom stocks.
    Advanced Info Service, Thailand's largest mobile
phone operator, on Thursday forecast 2016 revenue would be
slightly better than in 2015, saying service revenue growth in
the second half was expected to improve from the first
    Malaysia extended gains to close higher, driven by
gains in financial and consumer stocks.
    Malaysia's exports rose unexpectedly in June, driven by
higher demand for manufactured goods from the United States,
which offset the hit to the oil-producing country's commodities
    Vietnam closed lower, dragged down by financial
stocks, which accounted for more than three-fourths of the
losses on the index.
    Vingroup, Vietnam's top property firm, dipped 5.9
percent. Earlier in the session, it hit its lowest since April
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  STOCK MARKETS                                         
 Change on the day                                      
  Market            Current       previous     Pct Move
  Singapore         2828.17       2831.96      -0.13
  Bangkok           1518.69       1507.93      0.71
  Manila            7970.35       7978.57      -0.10
  Jakarta           5420.246      5373.863     0.86
  Kuala Lumpur      1664.04       1655.29      0.53
  Ho Chi Minh       627.39        631.94       -0.72
 Change so far                                 
 this year                                     
  Market            Current       End prev yr  Pct Move
  Singapore         2828.17       2882.73      -1.89
  Bangkok           1518.69       1288.02      17.91
  Manila            7970.35       6952.08      14.65
  Jakarta           5420.246      4593.008     18.01
  Kuala Lumpur      1664.04       1692.51      -1.68
  Ho Chi Minh       627.39        579.03       8.35
 (Reporting by Shashwat Pradhan; Editing by Sherry