BANGKOK, Oct 8: Indonesian shares gained today due to broad-based buying in large caps ahead of an interest rate decision by the central bank, while Thai stocks rebounded from two sessions of losses as investors hunted for bargains among mid- and small-cap shares.
Jakarta’s Composite Index was up 1.1 percent at midday in moderate trading volume that was around half of its full-day average over the past 30 sessions. Banking shares were among those actively traded, led by Bank Rakyat Indonesia .
Most analysts expect Bank Indonesia (BI) to keep its benchmark reference rate at 7.25 percent at a policy rate review later in the day, partly on the back of subdued inflationary pressures.
‘The foreign reserve data was supportive and also along with market expectations that BI will not increase its benchmark rate today, which should be positive for banking sector,’ said John Teja, director of broker Ciptadana Securities in Jakarta.
Indonesian foreign exchange reserves were at $95.68 billion at end of September, $2.68 billion higher than a month earlier, supported by a recent global sukuk issuance, the central bank said on Monday.
The key Thai SET index was up 1.3 percent at midday amid active speculative buying in shares such as Tipco Foods Pcl . Investors also bought shares of large caps such as Kasikornbank Pcl that had led recent market slides.
‘Local players were active in the morning session. I think, broadly, investors expect that the issue about U.S. Budget and debt ceiling will be resolved in time,’ said strategist Teerawut Kanniphakul at broker CIMB Securities.
Other Southeast Asian stocks markets were rangebound with Asian shares reversing early losses as data showed China’s services industry continued to expand, soothing to some extent nerves jarred by fears of a U.S. Debt default as the U.S. government shutdown entered a second week.
Among the gainers in the region, Singapore’s Straits Times Index edged up 0.4 percent to 3,147, recouping early losses after Monday’s slip to near a three-week low.
Shares in Singapore-listed mid-cap Blumont Group Ltd jumped 54 percent after the company named a new chairman. The stock had tumbled 85 percent after the Singapore Exchange lifted a trading suspension on Monday.
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SOUTHEAST ASIAN STOCK MARKETS
Change at 0547 GMT
Market Current Prev Close Pct Move
TR SE Asia Index* 409.09 407.14 +0.48
Singapore 3147.61 3136.59 +0.35
Kuala Lumpur 1775.60 1776.82 -0.07
Bangkok 1433.07 1414.62 +1.30
Jakarta 4420.80 4374.96 +1.05
Manila 6434.77 6443.21 -0.13
Ho Chi Minh 499.75 500.47 -0.14
(AGENCIES)
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