September 27, 2018 / 3:59 AM / 20 days ago

SE Asia Stocks-Most rise after "no-surprise" Fed rate hike

    * Singapore extends gains to seventh session
    * Philippines, Indonesia seen hiking rates
    * Philippines falls for third day

    By Devika Syamnath
    Sept 27 (Reuters) - Most Southeast Asian equities fared well
on Thursday after an anticipated U.S. Federal Reserve rate
increase shored up regional sentiment ahead of expected rate
hikes in Indonesia and the Philippines later in the day. 
    In a statement that marked the end of the era of
"accommodative" monetary policy, the Fed bumped up its policy
target by a quarter of a percentage point.
    "FOMC (Federal Open Market Committee) meeting was a
no-surprise event and investors are likely to reassess their
investment appetite in the emerging market space," said Taye
Shim, head of research at Mirae Asset Sekuritas.
    "With easing risks related to the FOMC and trade-related
issues, investors are likely to look at emerging markets from a
more optimistic perspective," added Shim.
    Indonesia's Jakarta Composite index added up to 0.9
percent, with consumer staples and energy stocks aiding the
rise. 
    Consumer goods company Unilever Indonesia Tbk PT
was the top boost, having risen 2.1 percent, while United
Tractors Tbk PT climbed 3.1 percent.
    Indonesia's central bank is widely expected to raise its
benchmark interest rate for the fifth time since mid-May to
support the rupiah, which has lost about 9 percent
against the dollar this year amid a sell-off of Indonesian
assets due to rising U.S. interest rates, contagion fear from
other emerging market crises and the Sino-U.S. trade
war.
    Bank stocks assisted Singapore shares advance as much
as 0.7 percent, for a seventh straight session in the black.
     Lender Oversea-Chinese Banking was the biggest
contributor to gains in the benchmark.
    "After yesterday's late afternoon unwind, there's some
bargain-hunting going on after that dip," said Stephen Innes,
Head of Trading, APAC at OANDA.
    The Philippine index, however, declined for its third
session and lost up to 0.6 percent.
    Telecom and utilities accounted for most of the fall with
top drag telecom service provider PLDT Inc falling as
much as 5.1 percent to its weakest level in over two months.
    Innes blamed the fall on a number of factors including twin
deficits, the prospect of rising inflation and an expected
hawkish rate hike.
    "The BSP is going to come out with interest rates, guns
blazing, but they have to tame inflation but also tame the
currency a little bit," said Innes. 
    Inflationary pressures in the Philippines have been steadily
rising since January due to higher taxes, a weak peso, and
rising food and fuel costs.
        
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SOUTHEAST ASIAN STOCK MARKETS
    
 Change on day                             
 Market          Current   Previous Close  Pct Move
 Singapore       3257.29   3239.1          0.56
 Bangkok         1747.12   1749.93         -0.16
 Manila          7251.24   7268.21         -0.23
 Jakarta         5923.772  5873.271        0.86
 Kuala Lumpur    1798.72   1798.72         0.00
 Ho Chi Minh     1012.93   1009.61         0.33
                                           
 Change on year                            
 Market          Current   End 2017        Pct Move
 Singapore       3257.29   3402.92         -4.28
 Bangkok         1747.12   1753.71         -0.38
 Manila          7251.24   8558.42         -15.27
 Jakarta         5923.772  6355.654        -6.80
 Kuala Lumpur    1798.72   1796.81         0.11
 Ho Chi Minh     1012.93   984.24          2.91
                                           
 

 (Reporting by Devika Syamnath in Bengaluru; Editing by Sunil
Nair)
  
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