SE Asian Stocks - Mostly higher on week but Singapore falls

Saturday, May 10, 2008
Most Southeast Asian stock markets gained this week as surging oil prices lifted commodity plays such as Malaysia's Sime Darby, but Singapore fell as financials such as Singapore Exchange floundered.

The region's markets closed on Friday mostly flat. Malaysia .KLSE and the Philippines .PSI edged up 0.38 and 0.68% on Friday to bring the week's gains to 1.08 and 2.07% respectively.

Singapore eased 0.31% on Friday and Indonesia .JKSE closed 0.01% down, but the Jakarta index gained 1.4% for the week, while Singapore's Straits Times slid 2.3%. Its losses were outdone only by Viet Nam, which fell a further 4.2% this week.

Thai shares .SETI closed 0.41% lower despite expectations that energy shares would rise on record oil prices CLc1, but top energy firm PTT closed flat.

Analysts said global share markets were generally softer over the last week due to to high oil prices.

"We expect a renewed bout of weakness over the next few months as credit markets remain difficult," said Shane Oliver, Head of Investment Strategy and Economist at AMP Capital Investors.

He said deteriorating global economic conditions will lead to profit downgrades.

In Singapore, bourse operator SGX led losses, falling 3% to end the week 6.2% lower.

The exchange also had to deal with complaints over technical glitches. Traders said on Friday they could not see buy and sell orders entered by other dealers for four hours.

SGX said it was due to "connectivity issues at the primary telecommunications provider".

Bucking the downtrend were commodities firm Noble Group, which rose by as much as 10.6% before paring those gains to close up 1.2%. The firm said on Thursday its first-quarter earnings nearly quadrupled on strong demand for food, energy and raw materials.

Palm oil producer Wilmar International also rose 1.7%, while Malaysian plantation giant Sime Darby gained half a% or 2.2% for the week.

Banks in Kuala Lumpur also rose after a 25% stake in the country's fourth largest lender RHB Capital was sold to Abu Dhabi Commercial Bank ADCB.AD. RHB gained half a% intraday but closed 1% down, while top lender Maybank gained 1.3% and third ranked Public Bank climbed 1.7%.

In Ho Chi Minh City, Vietnamese stocks .VNI slid 1.5% to close at 500.33 points on Friday, bringing its losses this year to 46%, but analysts said it could have
been worse.

"The index remains above 500 points thanks to foreign investors who saved the market from plunging by pumping in more than 4 trillion dong in ... April," said Bui Ngoc Long, Marketing Director at International Royal Securities.

"Investors are expecting room for expansion by foreign investors." (Reuters)