This will lead to another day of gains in ASEAN markets, if you have been following the advice, today will be a great day for you.

Positive economic data favoured commodities stocks in Singapore, with Noble Group up 2.9% at S$1.61, Golden Agri-Resources 3.8% higher at S$0.58 and Olam International up 3.4% at S$2.76.

Gaming group Genting Singapore, which owns one of two licensed casino resorts in Singapore, led the STI higher, rising 6.5% to S$1.80. The stock has been bolstered in recent weeks by continued upgrades in analyst ratings on improved earnings forecasts.

Property developer City Developments rose 1.5% to S$11.10, clawing back some of its losses incurred on the government’s recent measures to curb property speculation. Hong Kong Land rose 1.7% to US$5.46.

Singapore Telecommunications was flat at S$3.08 as investors mulled increased competition in the broadband space after the launch of the country’s high-speed national broadband network. Rival telco StarHub rose 2.0% to S$2.51.

Singapore share prices ended 1.1 percent higher on Wednesday, in line with the broader rise in Asian stocks as upbeat economic data from China and Australia revived shaky equity markets and gave a boost to risk sentiment.

The key Straits Times Index gained 32.50 points to end at 2,982.83. Overall volume traded was 1.66 billion shares worth S$1.60 billion. In the broader market, gainers outnumbered losers 323 to 134.

Data out on Wednesday showed Australia’s economy grew at the fastest pace in three years in the June quarter as households spent far more than expected while exports enjoyed an Asian-driven boom.

Other data showed Chinese manufacturing staged a moderate rebound in August, easing concerns about the pace of global growth that are based on weakness in the United States.
Singapore’s economy will likely expand at a record pace this year as a surge in demand for the city-state’s exports fuels manufacturing, according to a central bank survey of analysts.
The city-state’s gross domestic product will likely grow 14.9 percent this year, according to the median forecast of 20 economists in the quarterly survey, the Monetary Authority of Singapore said Wednesday.

In the previous survey in June, analysts had expected the economy would grow 9 percent this year.

Singapore’s economy – which relies on trade, finance and tourism – will likely be led this year by a 29 percent expansion of the manufacturing sector as non-oil exports soar 20 percent, according to the analysts.

The government boosted its 2010 growth forecast in July to a range of 13 percent to 15 percent after the economy expanded 18 percent in the first half from a year earlier.

The JCI rose 53.43 points, or 1.7 percent, to close at 3,135.37.

About 5.2 billion shares worth Rp 4.8 trillion changed hands. Gainers outnumbered decliners 139 to 59.

“The lower-than-expected inflation triggered investors to buy up interest-sensitive stocks like banking stocks and consumer goods stocks,” said Janson Nasrial, an analyst of Amcapital Indonesia.

“I am confident the JCI will hit 3,300 by the end of this year because inflation is still considered manageable, and our economic fundamentals are strong.”

The Central Statistics Agency reported that year-over-year inflation was 6.4 percent in August, below economists’ expectations of 6.7 percent.

Meanwhile, China’s manufacturing expanded at a faster pace in August and Australia’s economy grew faster than expected.

“Faster growth in Australia’s economy and China’s manufacturing are likely to support risk-taking sentiment,” said Yuji Saito, director of the foreign exchange department at Credit Agricole Corporate and Investment Bank in Tokyo.

On the Jakarta bourse, finance stocks rose. Bank Mandiri, the country’s biggest lender by assets, increased 1.7 percent.

Mortgage provider Bank Tabungan Negara climbed 2.2 percent.

Its finance director, Saut Pardede, said the company planned to sell Rp 1.5 trillion to Rp 2 trillion of bonds in the second quarter of next year to expand and improve the funding structure. He said lending could grow 27 percent in 2011.

Indofood Sukses Makmur, the nation’s biggest maker of instant noodles, slid 1.1 percent, while Unilever Indonesia advanced 0.9 percent.

Telekomunikasi Indonesia, the country’s biggest telecommunications provider, jumped 4.1 percent, its first gain in four days.

The rise followed a report by the Boston Consulting Group that the number of Internet users in Brazil, Russia, India, China and Indonesia would double to 1.2 billion by 2015, fueling growth at media companies and phone carriers.

Semen Gresik, the nation’s biggest cement-maker, increased 1.2 percent to Rp 8,800, the steepest climb since Aug. 19.

The stock was rated “buy” by BNP Paribas analyst Helmy Kristanto, who said the company would likely be the “main beneficiary” of growing development on Indonesia’s outer islands. Kristanto has a 12-month share-price estimate of Rp 10,150 for the stock.

The rupiah advanced the most in nearly three weeks on speculation the central bank will tolerate appreciation to curb the cost of imported goods, and on optimism overseas investors will buy more of the nation’s assets as trade with the rest of the world grows.

The rupiah climbed 0.4 percent to 9,000 per dollar. The currency strengthened as much as 0.6 percent, the most since Aug. 13.

The rupiah has risen 4.2 percent this year, the third-best performance among Asia’s most-traded currencies, excluding the yen.

The IPO by PT Indofood CBP Sukses Makmur, Indofood’s instant noodle and seasonings division, would be Indonesia’s largest in two years after Adaro Energy (ADRO.JK) raised $1.3 billion in 2008.

Indofood CBP set the price range for bookbuilding at 4,300 rupiah to 5,500 rupiah per share, said Harry Zen, a director at Credit Suisse Indonesia, one of the underwriters, giving a prospective 2011 price-earnings multiple of 15-19 times and a market cap of between $2.8 billion to $3.5 billion.

Indofood CBP will sell up to 1.166 billion new shares in the IPO, representing 20 percent of the enlarged share capital. It said 70-80 percent of the funds raised from the IPO would be used to repay debt and the rest for capital expenditure.

Indofood CBP will be competing with several other firms for investor funds, including IPOs by state-owned national carrier Garuda Indonesia and steel giant Krakatau Steel, which between them hope to raise a combined $800 million, while Bank Mandiri’s (BMRI.JK) rights issue could raise as much as $1.55 billion.

Coal miner Bumi Resources (BUMI.JK) plans to spin off its non-coal mining assets, while U.S. miner Newmont Corp (NEM.N) is considering listing its local unit.

Southeast Asia’s biggest economy has seen a steady pick up in investor interest over the past 18 months, thanks to a combination of political stability and improving economic growth.
Strong domestic consumption and demand for the country’s abundant commodities, ranging from coal to palm oil has also boosted foreign direct investment and appetite for Indonesian bills and bonds, lifting the rupiah.

The G20 member is expected to win an investment grade credit rating in the next year or two and is increasingly talked about as the up-and-coming emerging market, set to join the elite BRIC club consisting of Brazil, Russia, India and China.

SET index closed at 919.34, up 6.15 or 0.67% in trade worth 49.07 billion baht on Wednesday.

Top energy firm PTT (PTT.BK) gained 1.1 percent and rose to 269 baht amid hopes the national environment board would announce the list of hazardous projects later in the day, which may enable several key industrial projects, including PTT’s suspended sixth gas separation plant, to start up later this year, analysts said.

The country’s largest olefins maker, PTT Chemical PTTC.BK, was up 0.9 percent at 107.5 baht on expectations its ethylene product volume would rise along with more feedstock from its parent PTT’s sixth gas separation plant, they said. Other operators of halted projects were also expected to benefit from the approval of the list, including industrial conglomerate Siam Cement SCC.BK, which was up 2.2 percent at 274 baht.

Thai Union TUF the world’s largest canned tuna maker rose 7.5 percent to 61.25 baht, at one point climbing to an all-time high of 61.5 baht, as its plan to buy French-based MW Brands Holding SAS boosted earnings outlook and share price target.

Stocks with most active value were as follows:

PTT increased to 271.00 baht, up 6.00 baht.
KTB increased to 14.60 baht, up 0.20 baht.
TMB decreased to 2.66 baht, down 0.04 baht.
SCC increased to 305.00 baht, up 9.00 baht.
BANPU increased to 618.00 baht, up 6.00 baht

Bursa Malaysia Kuala Lumpur Composite Index closed at 1431.96 points on Wednesday, added 9.47 points or 0.67%.

DiGi dropped 8 sen to RM24.66; CIMB closed unchanged at RM7.80; IOI rose 5 sen to RM5.30 and Maybank jumped 10 sen to RM8.49 The ringgit was quoted at 3.1302 to the US dollar.

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) has chalked up gains of more than 3% in the past two weeks compared with Japan’s Nikkei 225 which lost 3.55%, Hong Kong’s Hang Seng which shed 2.7% and China’s Shanghai Composite Index which is down 0.87%. — Shayne Heffernan www.livetradingnews.com

At the close, the Bursa Malaysia benchmark index rose 11.44 points, or 0.8% to 1,422.49 points – the highest since February 2008.
In total, 17 out of the top 30 stocks that made up the FBM KLCI advanced, while 13 counters declined.

Overall market breadth was also mixed, with 377 losing stocks leading 334 gainers.

The broader FBM Emas index rose 0.7% to 9,482 points, but the FBM SmallCap index declined 0.3% to 11,141 points.

Shares in Genting jumped 41 sen, or 4.5% to RM9.45 on volume of 16.68 million shares.

Genting attracted strong attention from foreign investors following the stellar performance of its Singapore unit, and it is likely that the counter will breach the RM10.00 mark soon.

Genting closed 41 sen higher at RM9.45.

Maybank, the country’s largest lender, continued to surge as investors reacted positively to its financial results. It ended 1.57 per cent or 13 sen higher at RM8.39.

Sime Darby added 25 sen, or 3% to RM8.35 with 12.66 million shares transacted as the stock extended its unbeaten run to third day in a row.

Meanwhile, the ringgit snapped out of two-day losing streak to close 0.2% higher at 3.1379 against the US dollar.

In the commodity market, crude plam oil (CPO) futures rose RM18, or 0.7% to RM2,560 a tonne ahead of teh closing bell, while crude oil in New York was little change at US$74.78 a barrel in Asian trading.

The local market will be closed tomorrow for National Day holiday.

The Stock Exchange of Thailand (SET) composite index on Monday gained 9.28 points or 1.03 per cent to close at 909.65 points. The market value was 40.12 billion baht, with 10.70 billion shares traded.

Top five most active values were as follows;

TMB closed at 2.62 baht, up by 0.06 or 2.34 per cent.
KTB closed at 13.20 baht, up by 0.30 or 2.33% per cent.
DTAC closed at 48.75 baht, down by 0.75 or 1.52 per cent.
SSI closed at 2.00 baht, down by 0.06 or 2.91 per cent.
BTS closed at 0.90 baht, up by 0.01 or 1.12 per cent.

Exchange News

The Stock Exchange of Thailand (SET) announces that the selection criteria for SET50 and SET100 indices is amended in terms of the size screening rule from using their past 12 months record to 3 months of average daily market capitalization.

To ensure that the SET50 Index and SET100 Index mostly reflect the market value, SET revises the selection criteria for stocks in SET50 and SET100 with the main issues regarding to the size selection. From the previous rule, the size of eligible stocks is screened from the last 12 months of market capitalization; however, the new rule will draw only last 3-month record to represent the most recent and reasonable market size of the constituents, Ms. Kesara Manchusree, SET Group Head, Markets Division, said .

Due to the volatility of stock market, the 12-month historical period of data has not represented the current market size of the securities. The criteria is only adjusted the period of historical market capitalization data while others remain unchanged. The amendment will help reduce the gap between data variation and the most updated status of the company. Moreover, the shorter historical period of market capitalization is applied in accordance with other international index providers as well as some market comments. Besides, the SET50 and SET100 indices will be more attractive and efficient to use as benchmarks. The revision will be effective on the first half of 2011 periodic review onward. The SET will announce the list of components selected under the new criteria in December 2010, and every six months thereafter.

Thai Fund

The Thai Capital Fund, Inc. (the “Fund”)  , a closed-end management investment company seeking long-term capital appreciation through investment primarily in equity securities of Thai companies, today announced its results for the quarter ended June 30, 2010 and commented on the economic outlook for Thailand.

The Fund’s investments in Thailand are made through a wholly owned investment plan (the “Investment Plan”) established under an agreement between SCB Asset Management Co., Limited (”SCBAM”), the Fund’s investment manager, and the Fund. The Fund’s investments through the Investment Plan are managed by SCBAM, located in Bangkok, Thailand. Daiwa SB Investments (Singapore) Limited, the Fund’s investment adviser, provides SCBAM with advice regarding investments through the Investment Plan and manages the Fund’s assets held outside the Investment Plan.

Second Quarter Earnings Results

For the quarter ended June 30, 2010, the Fund earned net investment income of U.S. $506,000 (equivalent to income of U.S. $0.16 per share), resulting in net investment income for the six months ended June 30, 2010 of approximately U.S. $628,000 (equivalent to income of U.S. $0.20 per share). Net realized and unrealized gains from investment activities and foreign currency transactions for the quarter ended June 30, 2010 were approximately U.S. $506,000 (equivalent to a gain of U.S. $0.16 per share). As a result, the net realized and unrealized gains for the six months ended June 30, 2010 were approximately U.S. $4,241,000 (equivalent to a gain of U.S. $1.34 per share).

In comparison, for the quarter ended June 30, 2008, the Fund earned net investment income of U.S. $326,000 (equivalent to income of U.S. $0.10 per share), resulting in net investment income for the six months ended June 30, 2009 of approximately U.S. $392,000 (equivalent to income of U.S. $0.12 per share). Net realized and unrealized gains from investment activities and foreign currency transactions for the quarter ended June 30, 2009 were approximately U.S. $8,444,000 (equivalent to a gain of U.S. $2.67 per share). As a result, the net realized and unrealized gains for the six months ended June 30, 2009 were approximately U.S. $7,469,000 (equivalent to a gain of U.S. $2.36 per share).

On June 30, 2010, the total net assets of the Fund were approximately U.S. $41.7 million. The net asset value (”NAV”) per share on that date was U.S. $13.16, based on 3,172,313 shares outstanding. In comparison, on June 30, 2009, total net assets were approximately U.S. $31.1 million. The NAV per share on that date was U.S. $9.80, based on 3,167,316 shares outstanding. The Fund generated an investment return of 13.25% for the six months ended June 30, 2010, when measured against the NAV per share of U.S. $11.62 calculated on December 31, 2009. In comparison, the Stock Exchange of Thailand (”SET”) Index increased 11.64% during the same period, in U.S. dollar terms.

As of June 30, 2010, the Fund had 96.34% of its net assets invested in Thai equities and 5.81% in Thai cash instruments. The remaining assets were made up of 0.69% in short-term U.S. dollar time deposits and liabilities in excess of other assets of (2.84)%.
As of August 26, 2010, the Fund had total net assets of approximately U.S. $48.9 million, equivalent to a NAV per share of U.S. $15.42. On that same date, the Fund’s shares on the NYSE Amex closed at U.S. $12.90, representing a trading discount of 16.34% to its NAV per share.

The key Straits Times Index gained 18.32 points to close at 2,957.06. Overall volume traded was 1.38 billion shares. In the broader market, gainers outnumbered losers 255 to 188.

But weakness in domestic property stocks tempered gains in the broader market, after Singapore government’s new curbs on property market speculation weighed on local property developers.

Among the property stocks, Allgreen Properties tumbled 7.0% to S$1.06, CapitaLand gave up 0.5% to end at S$3.98 and City Developments shed 4.2% to S$11.46.

The JCI slid 5.2 points, or 0.2 percent, to close at 3,099.57, the second day of losses. About 5.3 billion shares worth Rp 3.2 trillion ($355 million) changing hands. Decliners outnumbered gainers by 97 to 87.

Finance stocks took a hit, with Bank Mandiri, the country’s biggest lender by assets, falling 1.7 percent, and Bank Bukopin down 2.8 percent. Telekomunikasi Indonesia, the nation’s largest telecommunications company, dropped 0.6 percent.

The rupiah posted its biggest gain in two weeks on optimism that global funds would lift buying of Indonesian assets after the Fed indicated it was willing to do more to lift the US economy.

Energy stocks gained as crude oil prices rose. Medco Energi Internasional, the country’s biggest listed oil company, gained 1.6 percent. Energi Mega Persada advanced 1.1 percent.

Crude oil for October delivery rose 2.5 percent to $75.17 a barrel on Friday, posting its best weekly gain since July 23. The contract was at $74.70 in after-hours trading in New York.

Bumi Resources, Asia’s largest exporter of power-station coal, rose 1.2 percent. Director Dileep Srivastava said the miner planned to cut debt by $800 million in the fourth quarter and refinance “immediate maturities.”

Indofood Sukses Makmur, the nation’s biggest maker of instant noodles, jumped 5.5 percent to Rp 4,825, a record close, after it was raised to “overweight” by Morgan Stanley, which cited a shift in profitability at its consumer-branded products business.

Purbaya Yudhi Sadewa, an analyst at Danareksa Research Institute, said the upcoming holiday season had prompted some investors to bank gains.

“The drop is short-term. There’s no need to be concerned about Indonesian stocks because the economy has strong fundamentals,” he said.

The rupiah climbed 0.3 percent, the most since Aug. 13, to 9,016 per dollar as of the stock market’s close.

US Federal Reserve chairman Ben Bernanke said on Friday that the central bank “will do all that it can” to ensure a continuation of the US economic recovery.”

The US bought more than 10 percent of all goods shipped out of Indonesia in the first half of the year, according to central bank data.

“The sentiment on equities is buoyant after Bernanke’s comments downplayed concerns of an economic recovery,” said Joanna Tan, a regional economist at Forecast Singapore. “The rupiah is consolidating very well.”

The MSCI Asia-Pacific Index of regional shares rose 1.2 percent, the highest gain in four weeks, on the Fed’s announcement.

“The US will very likely introduce additional stimulus measures to prevent a double-dip for its economy,” said Wei Wei, an analyst at West China Securities. “To some extent, that will alleviate lingering concern about a faltering global economic recovery.”

According to economists’ estimates, annualized inflation in Indonesia rose to 6.7 percent in August from a year earlier, after gaining 6.22 percent the month before.

The inflation report is due today. Bank Indonesia is expected to keep its key rate at 6.5 percent when it meets of Friday, a separate survey said.

“We are seeing consumer prices under pressure in the month of Ramadan,” Tan said. “The central bank may hike the benchmark interest rate by 25 basis points before the end of the year.”

The Muslim fasting month of Ramadan will end next week. — Shayne Heffernan www.livetradingnews.com

Malaysia, the week’s best performer, ended the week 1.15 percent higher, against last week’s gain of 2.56 percent. The FBM KLCI rose 0.22% to close at 1411.05 points on selected buying of SIME and Public Bank.

The strong buy from Shayne Heffernan on Genting Bhd has managed to provide investors with fast returns as the company posted a whopping 244.6% jump in net profit for its second quarter ended June 30 to RM739.2mil compared with RM214.5mil in the same quarter a year ago.

Revenue stood at RM4.1bil compared with RM2.1bil previously.

Genting said in a statement that the increase came mainly from its leisure and hospitality division following the commencement of Resorts World Sentosa (RWS) in Singapore.

It said the improved revenue from RWS was largely due to better luck in the premium players business, which also contributed to improved profit.

Genting said its casino in Britain benefited from an increase in business volume but the weaker pound sterling translated into lower casino revenue in ringgit terms.

It said revenue and profit from Genting Plantations Bhd was higher in the quarter as a result of better palm product prices and improved fresh fruit bunches production.

However, its power energy division Genting Energy Ltd recorded a lower revenue due to lesser generation of electricity by its Meizhou Wan plant in China.

Genting’s oil and gas division also posted a drop in revenue and profit due to lower share of entitlement in China.

The company said, overall, its better performance in the quarter was due to share of results in jointly controlled entities and associates.
For the six months ended June 30, Genting posted a 124% increase in net profit to RM971.6mil compared with RM427.6mil in the corresponding period a year ago.

Revenue jumped 71.4% to RM7.2bil from RM4.2bil before.

The company said it was cautiously optimistic about its prospects as regional competition continues.

“While business has been resilient, the management will continue to closely monitor the competitive environment and intensify its plans to meet growing competition.”

Genting also said that with the opening of Marina Bay Sands, RWS’s business had showed resilience and its business model had displayed impressive strength.

“RWS continues to be optimistic with its business model for the rest of the year,” it said.

It added that the resort hosted a series of high-profile entertainment events and promotions and would continue to fill the rest of its year-long calendar with activities to encourage fresh and repeat visitations.

It said RWS would continue to improve its attractions, facilities and infrastructure to meet guest expectations. Construction of the West Zone has started and it is expected to commence operations next year.

Genting also said the performance of its power division was expected to be impacted by the Meizhou Wan plant, which was experiencing lower-than-expected tariff increases and reduced generation hours.

The performance of its plantation division remains satisfactory.

Genting has declared a gross interim dividend of 3.3 sen per ordinary share of 10 sen each, less 25% tax, for the first half of 2010.
This represents a 10% increase compared with 3 sen per ordinary share of 10 sen each, less 25% tax, in the first half of last year.
The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) ended the morning session higher today, as the market recouped early losses.

The benchmark index was mostly in red in the morning trading session before advancing marginally higher.

At 12.30pm, the FBM KLCI added 0.99 points to 1,408.99 after opening 3.63 points lower at 1,404.37 points.

Losers led gainers 364 to 204 while 220 counters were unchanged. Turnover stood at 360.2 million shares worth RM657.8mil.

On Bursa Malaysia, British American Tobacco (M) Bhd topped the gainers’ list, appreciating 26 sen to RM45.10.

Other gainers included Lay Hong Bhd, Padini Holdings Bhd and Sime Darby Bhd.

Among banks, CIMB Group fell 1 sen to RM7.72, Public Bank Bhd added 12 sen to RM12.14 while and Maybank were 5 sen higher at RM8.27.

Leading the list of heavily-traded counters was Time DotCom Bhd, which fell 1.5 sen to 49.5 sen on a volume of 31.9 million shares done.
Dealers said market was expected to see downside pressure after the overnight slide on Wall Street.

Overnight, the Dow Jones Industrial Average fell 74.25 points to 9,985.81, below the psychological 10,000 level as investors shrugged off better US jobs data and braced for a sharp revision of US economic growth to be announced tonight.

F&N Subsidiary To Buy 23.1% Stake In Cocoaland For RM54.6m

Singapore closed up 0.44 percent, or 12.87 points, at 2,938.74.

Singapore Airlines fell 1.55 percent to 15.20, while Olam International rose 6.77 percent to 2.68.

Fraser and Neave (F&N)’s Bursa-listed subsidiary is buying a 23.1% stake in Cocoaland Holdings Berhad (CHB) for RM54.6m ($23.6m), in a bid to strengthen its food products portfolio. CHB, a Bursa-listed investment holding company whose units manufacture and distribute processed and preserved foods, fruit juices and other foodstuff, is Malaysia’s sole coco pie producer. A leading gummies manufacturer in the Asean region, CHB also exports to 50 countries. ‘Along with our investments in soft drinks, beer and dairies, this will give us a solid platform to realise our growth ambitions,’ said F&N Food and Beverage chief executive Koh Poh Tiong.

Ying Li Acquires Chongqing Site For Rmb697m

Ying Li International Real Estate has acquired a commercial development site in China’s Chongqing city for Rmb697m ($139.5m). It added in a separate announcement that it has obtained credit facilities of up to US$200m from Standard Chartered Bank (China). The money will be used to make site acquisitions and develop projects, it said. The 102,483 square feet commercial site it bought will be developed into 968,752 sq ft of grade A office space and 430,556 sq ft of high-end retail space. The gross floor area will be about 1.7m sq ft. The site is in the Jiefangbei central business district and is part of the Chongqing municipal government’s Rmb600b plan to redevelop the city centre to make Chongqing CBD a financial hub. The project is expected to be completed by end-2013.

Eu Yan Sang’s Earnings Jump 47%; Proposes 1-For-5 Bonus Issue

Eu Yan Sang International posted a 47% yoy increase in its FY10 net profit to $19.2m, boosted in part by a $1.17m fair value gain on investment properties and a $331,000 revaluation gain on property, plant and equipment. Revenue increased 10%, mainly attributable to the increase in retail sales in all 3 core markets. Segmentally, traditional Chinese medicine (TCM) retail segment saw revenue rise 13% to $197.6m, while the TCM wholesale segment saw revenue fall 5% to $31m because of lower exports to China due to a license renewal issue. Revenue from clinics was flat at $14.3m. At the end of FY10, Eu Yan Sang had a retail presence of 165 stores and 21 clinics, having recently launched a medical centre in Hong Kong. Meanwhile, the company has declared a dividend of 2.5 cents – comprising a final dividend of one cent and a special dividend of 1.5 cents. It has also proposed a 1-for-5 bonus issue.

Singapore-based Olam International’s takeover play for dairy farm developer NZ Farming Systems Uruguay got a boost yesterday as a rival overseas bidder pulled out.

Olam this week raised its bid from 55c to 70c a share, valuing the NZX-listed company at $171 million.

The increased offer is too hot for Uruguay-based Union Agriculture Group which – before Olam raised its bid – had given notice it intended to make a 60c-a-share offer.

Union Agriculture had intended to launch its formal offer next week but decided against making a bid higher than Olam’s offer.

Philippine Stock Exchange index lost 36.91 points or about one percent to 3,558.67.

Dealers said the correction was expected as the index had risen sharply last week, halted only by jitters over a bloody hostage-taking incident in Manila this week.

Week on week, the index has also fallen by nearly one percent, a turnaround from the five-day run-up that allowed it to climb 3.58 percent last week.

The holding firms, property and industrial sectors took the worst beating as their respective counters fell 2.72 percent, 1.78 percent and 1.24 percent.

The mining/oil sector was the only counter that defied the downtrend, rising 1.83 percent as investors loaded up on stocks of Philex, whose share price surged 7.4 percent to P10.74.

The market was dragged down by profit-taking on PLDT, DMCI Holdings, PNB, EDC, Megaworld, BPI, SM Investments and JG Summit.
Aside from Philex, local banking giant Banco de Oro closed in positive territory, its share price rising 1.76 percent to P52.10.
There was only one gainer for every three decliners. Value turnover amounted to P4.6 billion.

Overnight, the Dow shed 74.25 points or 0.74 percent to 9,985.81, falling below the 10,000-mark for the first time since July 6.
Traders in Jakarta caused a late sell off on the exchange expecting the USA GDP to come in under 1.4%, the number beat estimates coming in at 1.6% which will lift Jkarta stocks Monday.

The Jakarta Composite Index suffered its steepest loss since Aug. 3, tumbling 40.4 points, or 1.3 percent, to 3,104.73. About 6.1 billion shares worth Rp 4.3 trillion ($477 million) changed hands. Decliners outnumbered gainers 147 to 52.

In local stocks, rallying big-cap stocks retreated, with state-owned Telekomunikasi Indonesia and Bank Rakyat Indonesia each sliding more than 2 percent.

The Indonesia Stock Exchange (IDX) recorded outflows of $31 million on the session, erasing $27.4 million of combined inflows over the four past days, according to Reuters data.

Among other decliners, Bumi Resources dropped 5.1 percent, while Bakrie Sumatera Plantation fell 3.5 percent.

Bank Mandiri, Indonesia’s biggest lender by assets, fell 1.7 percent, while Bank Rakyat Indonesia, the second-largest, declined 2.6 percent.

Domestic banks had their recommendation lowered to “underweight” from “neutral” by JPMorgan Chase, citing a decline in profitability.
Indofood Sukses Makmur, the country’s top instant noodle maker, advanced 1.7 percent to Rp 4,575. The company’s instant noodle unit said its parent planned to sell a 20 percent stake in the subsidiary through an initial public offering next month.

Holcim Indonesia, the country’s third-biggest cement maker, fell 4.3 percent after Citigroup rated the company a “sell” in new coverage, saying a lot of the good news on potential market share gains may be already priced into the stock.

The rupiah declined the most in two weeks as economists predicted the central bank would leave borrowing costs unchanged amid accelerating inflation.

The rupiah fell 0.3 percent, the most since Aug. 12, to 9,018 against the dollar as of 4:04 p.m. in Jakarta, according to Bloomberg. The currency dropped 0.4 percent on the week.

According to economists’s estimates, the nation’s inflation rose to an annualized 6.7 percent in August from a year earlier, after surging to 6.22 percent the month before. The inflation report is due on Wednesday.

A separate survey forecast that Bank Indonesia would keep its key rate at 6.5 percent later next week, despite central bank Deputy Governor Hartadi Sarwono warning of persistently high inflation.

Apratim Chakravarty, the Jakarta-based head of global markets at HSBC, said the situation would keep the rupiah in check. “From Bank Indonesia’s perspective, they don’t want volatility in the currency, so they won’t want any untoward strength.”

SET index closed at 900.37, up 14.27 or 1.61% in trade worth 43.60 billion baht on Friday.

Stocks with most active value were as follows:

PTTEP decreased to 141.00 baht, down 1.00 baht.
TMB increased to 2.56 baht, up 0.14 baht.
JAS increased to 1.60 baht, up 0.06 baht.
CPF increased to 26.00 baht, up 0.75 baht.
PTT was unchanged at 258.00 baht.

Ford Motor Company and Mazda Motor Corporation are investing US$350 million in their 50:50 joint venture in Thailand to support the production of the next generation of pickup trucks.

The investment in the plant of AutoAlliance Thailand (AAT) in Rayong will enable production of the new Mazda and Ford compact pickups to start in mid-2011.

The companies said the investment would support facility upgrades and supplier tooling. It would lift Ford and Mazda’s total joint investment in AAT to $1.85 billion since it began in 1995.

“The new investment marks another important step forward in AAT’s development as a manufacturing hub,” said Toshinori Kusuhashi, the president of AutoAlliance Thailand.

The government will oversee the value of baht to prevent it fluctuating too much, Prime Minister Abhisit Vejjajiva said on Friday afternoon.

“Relevant state agencies will introduce needed measures to stabilise the value of the Thai currency, but will not act against the money market’s mechanism. We have already experienced an expensive lesson from doing so in the past,” said Mr Abhisit.

The prime minister said the Bank of Thailand must oversee the baht’s value and interest rates to ensure they stay at appropriate levels and in line with the changing situation. Any decision to adjust the policy rate must be made carefully as the central bank is also duty-bound to curb inflation.

He had discussed the economic situation with the Office of the National Economic and Social Development Board and believed the current inflation rate is controllable. Inflation is unlikely to be higher than the current level.

Mr Abhisit said even though the economy would grow at a slower pace in the second half of the year, the growth rate could be higher than seven per cent this year. He projected economic expansion would slow down to four to five per cent next year.

“Thailand is still very under held by international investors,” Korn told investors in Singapore today. “By most measurements, Thailand remains one of the cheapest stock markets in the region so the only reason why investors were shying away from Thailand must be because of their concerns related to the political instability.”

The Thai equities rally, which surpassed the 20 percent threshold for a bull market in early August, has accelerated as tension eased since deadly street protests claimed 89 lives in April and May, and the Cabinet lifted emergency rule in 17 provinces. Southeast Asia’s largest economy after Indonesia grew 9.1 percent in the second quarter as exports countered the impact of the political unrest.

Shayne Heffernan www.livetradingnews.com

In Malaysia the Index rose 0.8 percent to its highest since Feb. 21, 2008

Supermax Corp Bhd recorded a 77.8% jump in net profit to RM45.9mil for the second quarter ended June 30 versus RM25.8mil in the same quarter last year due to strong global demand for rubber gloves, higher selling prices and cost savings.

Revenue rose 24.6% to RM234.8mil for the period as compared with RM188.5mil last year.

For the six months ended June 30 net profit surged 114% to RM97.3mil as against RM45.5mil in the same period of 2009.

Revenue rose 19.6% to RM455.5mil in the first six months of the year versus RM380.9mil in the previous year.

Supermax declared a dividend of 2.5 sen per share for the second quarter.

Fraser and Neave Holdings Bhd (F&N) has announced that it is proposing to acquire 39.6 million shares or a 23.08% stake in Cocoaland Holdings Bhd for RM54.6mil or RM1.38 per share cash.

F&N chief executive officer Datuk Ng Jui Sia said in a statement that the stake in Cocoaland – the group’s first in a food manufacturer – provides it with a strategic and synergistic foothold to advance its aspirations to create a regional, world-class food and beverage enterprise.

“We are excited with the creation of a new food platform via this agreement and will work in tandem with our partners to leverage our various marketing and distribution strengths and capabilities to mutually develop our equity in the growing and exciting food and beverage sector.

“Our investments in soft drinks and dairies to-date have given us a solid platform to realise our regional ambitions, and the combination of the capabilities within the Cocoaland Group will complement and significantly boost our food and beverage credentials and maximise shareholder value,” he added.

Both F&N and Cocoaland shares have been suspended today pending the announcement.

Cocoaland added 11 sen to RM2.87 while F&N fell eight sen to RM14.46 yesterday.

Listed plantation companies which released their quarterly results yesterday generally posted stronger performances buoyed by higher average selling prices of crude palm oil (CPO) and palm kernel (PK) as well as higher sales volume.

Genting Bhd unit Genting Plantations Bhd saw net profit increasing to RM71.4mil for its second quarter ended June 30 from RM59mil in the previous quarter.
Revenue for the quarter under review firmed RM231.2mil on the back of RM95.6mil in pre-tax profit.

The group attributed the stronger performance to higher prices of palm products, an increase in fresh fruit bunches (FFB) production and gain on dilution of shareholdings in a subsidiary.

The Stock Exchange of Thailand (SET) composite index went up 1.59 points or 0.18% to close at 886.10 points at the end of trading session on Thursday afternoon. The trade value was 32.40 billion baht.

Top five most active values were as follows;

TMB closed at 2.42 baht, up 0.04 baht (1.68%)
JAS closed at 1.54 baht, down 0.10 baht (6.10%)
ITD closed at 3.42 baht, up 0.22 baht (6.88%)
PTT closed at 258.00 baht, up 1.00 baht (0.39%)
THCOM closed at 8.45 baht, up 0.55 baht (6.96%)

The increase in the repurchasing rate by another 0.25 percentage points would not have much impact on the export sector, Finance Minister Korn Chatikavanij said on Thursday afternoon.

The Bank of Thailand’s Monetary Policy Committee yesterday decided to increase the key policy rate from 1.50 per cent to 1.75 per cent.

Mr Korn admitted that the increase in the key policy rate would result in the baht’s further appreciation, but said the Thai currency’s current value is in line with foreign currencies of other Asian countries.

The minister was confident that a stronger baht would not hurt the trade competitiveness of Thai manufacturers.

The Thailand Exhibition and Convention Bureau (TCEB) has launched its Believe in Thailand campaign to rebuild confidence in the country as a business events destination.
“With the launch of this new campaign, we want to inform potential business travellers to Thailand and reassure all MICE players, organisations and businesses,” said Akapol Sorasuchart, president, TCEB. “Bangkok and Thailand are back to normal. There has never been a better time to hold a business event in Thailand.”

TCEB has also hosted a number of familiarisation trips since the end of the domestic conflict in May in an effort to show meeting and event planners first-hand the resumption of business.

“The objective of this road show and global campaign is to reignite the interest and confidence in Thailand,” added Sorasuchart. “Thailand is a country that has developed a thriving business travel industry through the superior service, professionalism and friendliness of the Thai people.

“This has not changed and we are positive that Thailand will continue to be an attractive destination for MICE events.” Phuket is the first destination to show signs of recovery, hosting a steady stream of events during the past three months.

However, the continued State of Emergency has kept in place automatic travel advisory warnings in several countries, meaning many delegations cannot be covered by insurance when travelling to Thailand, despite attractive rates, financial incentives and their willingness to do so.

Philippine Stock Exchange index gained 41.58 points, or 1.17 percent, to 3,595.58. Yesterday’s trading had been extended due to a glitch in the system that briefly interrupted the session.

The market closed at 12:40 p.m. instead of 12:10 p.m. Trading was halted at 9:44 a.m. and resumed at 10:33 a.m.

Trading volume was slightly lower at P3.8 billion compared to the previous day’s average of over P4 billion partly due to the interruption.

There were 101 advancers against 40 decliners, while 28 stocks were unchanged.

The upbeat local sentiment was also supported by a slim gain eked out by US stocks. The Dow Jones Industrial Index was up by 19.61 points, or 0.2 percent.

The mining/oil, property, holding firms and industrial counters benefited most from the run-up.

Investors snapped up shares of DMCI Holdings Inc., Universal Robina Corp., Alliance Global Group Inc., Philex Mining Corp., Energy Development Corp., Megaworld Corp., Metropolitan Bank & Trust Co., Ayala Land Inc., Semirara Mining Corp., Filinvest Land Inc., First Philippine Holdings Corp., Aboitiz Power Corp., Bank of the Philippine Islands

The JCI rose 6.2 points, or 0.2 percent, to close at 3,145.14. Volume was heavy, with 8.43 billion shares worth Rp 5.31 trillion ($589.4 million) changing hands. Gainers outnumbered decliners 114 to 81.

“While the global economic recovery is very slow, Indonesian growth has been robust and valuations are cheaper at around 13 times,” said one Jakarta-based analyst. “So there is strong foreign as well as domestic demand for Indonesian stocks.”

However, momentum in recent days has faded, and some analysts warned of profit-taking in the near term, especially in light of uncertainty over the global economic recovery.
“We should keep our eyes on the [market], because investors might want to do profit-taking simultaneously, which could lead to a big decline,” said Saiful Adrian, an analyst at Ciptadana Securities.

Indofood Sukses Makmur, the country’s biggest instant noodle maker, advanced 3.5 percent, its steepest gain since July.

State-owned coal producer Tambang Batubara Bukit Asam surged 7.5 percent. Bukit Asam allocated Rp 3.9 trillion to buy two coal mines in Kalimantan, Investor Daily reported on Thursday, citing its corporate secretary Achmad Sudarto. The company expects to complete the purchases this year, the news report said.

On Wednesday, Adani Global, the Indonesian unit of Indian conglomerate Adani Group, announced it would invest $1.6 billion in a railway project for a coal mine site in South Sumatra in cooperation with Bukit Asam.

Coal miner Bumi Resources, a unit of the Bakrie group, declined 2.7 percent.

State-owned construction company Wijaya Karya gained 1.7 percent after reporting that its first-half net income rose 51 percent from a year earlier to Rp 140.76 billion.
The rupiah has traded within a 0.2 percent range all of this week on speculation the central bank will hold the currency at current levels to support exporters and contain inflation. Bank Indonesia is “comfortable” with the rupiah’s present level as it is acceptable to exporters who compete on price terms in global markets, said Muhammad Fauzi Halim, a foreign-exchange trader at Bank Resona Perdania.

“Bank Indonesia thinks it is very safe for the rupiah to trade below 9,000,” he said.

The rupiah was at 8,990 per dollar as of the stock market’s close, compared with 8,983 on Wednesday. The currency reached 8,905 on Aug. 3, its strongest level since June 2007.
Benchmark government bonds fell, pushing yields up by the most in a week, before the government is set to report inflation data on Wednesday. According to economists in a Bloomberg survey, consumer prices rose 6.7 percent in August from a year earlier, after climbing to 6.2 percent in July.

Bond “investors are waiting for the inflation figures,” said Dino Nunuhitu, vice president at Indo Premier Securities in Jakarta. — Shayne Heffernan www.livetradingnews.com

When the Jakarta index approached 3000 Shayne Heffernan of Ebeling Heffernan predicted a rapid rally after the 3000 mark fell, “Jakarta Stock Exchange is on the 3000 pt barrier, once that falls the market may surge toward 3150 very fast” Shayne Heffernan said on July 20.

Today the JCI rose 24 points, or 0.8 percent, to close at 3,138.91. Volume was high, with 7.7 billion shares worth Rp 4.27 trillion ($474 million) traded. Gainers trounced decliners 125 to 47.

Foreign investors ignored a raft of gloomy economic data from across the globe and took the Jakarta Composite Index to a record high again on Wednesday, even as most Asian markets tumbled on concern that the global recovery was faltering.

The advance came despite a plunge in sales of existing homes in the United States, slowing exports in Japan and a drop in South Korean consumer confidence.

Frederik Daniel Tanggela, an analyst at Sucorinvest Central Gani, said overseas investors dominated buying as sentiment for the domestic stock market continues to improve.

Meanwhile, the rupiah gained the most in a week, trading at 8,983 against the dollar as of the stock market’s close, on speculation the central bank would allow the currency to appreciate to cap inflationary pressures caused by rising prices of imported goods.

Inflation has been ahead of and during the fasting month, with the Central Statistics Agency (BPS) forecasting year-on-year inflation of 6.5 percent for August, topping the 15-month high of 6.22 percent in July.

“The central bank wants the dollar-rupiah to trade below 9,000 to calm inflation,” said Aris Setiawan, a currency trader at Bank Chinatrust Indonesia.

“It is easy for the central bank to handle the currency and allow the rupiah to trade between 8,950 and 8,980 because of low volumes in the month of Ramadan.”

Central banks intervene in currency markets by arranging purchases or sales of foreign exchange. The rupiah has gained 4.6 percent this year as overseas investors have bought $1.7 billion more of Indonesian shares than they have sold.

In local stocks, Bakrie Group coal miner Bumi Resources surged 11.6 percent.

Bank Bukopin rose 2.8 percent to Rp 740, its highest close since its debut in July 2006, on news that Jaminan Sosial Tenaga Kerja (Jamsostek), the state pension fund, plans to buy a 20 percent to 25 percent stake in the lender.

Indopoly Swakarsa Industry, which manufactures flexible packaging products, jumped 17 percent, the biggest gain since its shares were listed in July. Indopoly was rated “buy” by OSK Nusadana Securities Indonesia, which said the company was “well-positioned” to benefit from “strong demand growth.”

Biscuit maker Mayora Indah rose 4.8 percent to Rp 8,800, its highest level in at least 19 years.

The Straits Times Index (STI) gained 3.70 points to end at 2,926.55 on a volume of 1.16 billion shares worth S$1.09 billion. Decliners outnumbered rising stocks 210 to 182, with 865 issues even.

Fraser and Neave rose 2.22 percent to S$5.52 while United Overseas Bank fell 1.60 percent to S$18.42.

The economy of Singapore, Asia’s second-smallest country after the Maldives, may be the world’s fastest-growing in 2010 after ballooning demand for goods and services prompted the government to raise forecasts three times since January. Gross domestic product increased 17.9 percent in the first half, ahead of the trade and industry ministry’s full-year prediction of between 13 percent and 15 percent and surpassing India’s expectations of 8.5 percent growth and China’s of 9.5 percent.

Companies added about 63,000 jobs in the six months to June 30, according to the Ministry of Manpower, a year after Singapore exited its worst recession since independence in 1965. Monthly tourist arrivals exceeded 1 million for the first time in July after Las Vegas Sands Corp. and Genting Singapore Plc opened the city’s first casino resorts.

Property developers, shopping mall operators and hoteliers accounted for about 25 percent of Singapore’s 112 bond issues this year, Bloomberg data show.

CapitaLand, Southeast Asia’s biggest developer, and its units sold S$1 billion ($735 million) of bonds this month in maturities ranging from four to 10 years. The company paid a 4.3 percent coupon when it sold S$350 million of 10-year bonds at par on Aug. 17 compared with 4.4 percent when it sold S$100 million of eight-year notes in 2003, the data show.

Temasek is Singapore’s most prolific borrower this year after it issued notes in British pounds and Singapore dollars with maturities of between 10 and 40 years, according to Bloomberg data. The state-owned investment company is paying a 4.2 percent coupon for its 40-year notes, 10 basis points less than the 4.3 percent it paid for 10-year money in 2009.

Temasek sells bonds “as public markers of our credit quality,” spokesman Jeffrey Fang said in an e-mailed response to questions. As well as improving capital efficiency and funding flexibility, they “foster the discipline of engaging with both international and Singapore bondholders,” he said.

The investment company’s 4.2 percent notes due 2050 are trading at 104.83 cents on the dollar to yield 3.958 percent, according to Standard Chartered prices. Sold at par, they traded as high as 109.9 cents on Aug. 18.

“With reasonable growth coming back into Asia, locking in a low coupon for the next 10 years is a pretty smart thing to do,” said Sean Henderson, Hong Kong-based head of Asia debt syndication for HSBC Holdings Plc, the No. 3 arranger of Singapore bond sales this year. “Singapore borrowers tend to be rare and very high quality names, so investors have been comfortable about extending durations in order to get a bit of extra yield.”

Olam International Ltd., the Singapore-based commodities trader, paid 7.5 percent this month when it sold $250 million of 10-year bonds, its longest-maturity notes. The bonds traded at 101.13 cents on the dollar to yield 7.338 percent today, according to Royal Bank of Scotland Group Plc prices. Olam declined to comment in an e-mailed response to questions.

While companies can typically borrow larger sums in the U.S. dollar bond market, according to HSBC’s Henderson, they pay slightly less to sell bonds in Singapore. Companies completed 35 U.S. dollar-denominated sales that raised $500 million or more in Asia excluding Japan this year compared to nine corporate sales of at least S$500 million.
Interbank Costs.

The Singapore interbank offered rate that banks charge each other to borrow U.S. dollars was last at 0.31328 percent, its lowest in at least 23 years. The rate rose to as much as 5.7775 percent during the global financial crisis as banks hoarded capital after the collapse of Lehman Brothers Holdings Inc.

Borrowers sold $2.5 billion of bonds in the city in 1999 and issuance ranged between about $5 billion and $7 billion a year for much of the last decade, Bloomberg data show.
“The regulators in Singapore have been working hard to make this market appealing to both investors and issuers,” said Clifford Lee, head of fixed-income for DBS Group Holdings Ltd., the top-ranked underwriter of Singapore dollar bond sales. “There’s no withholding tax and the approval process for foreigners to sell bonds is simple and quick if it’s just an offering to accredited investors,” he said.

VTB Group, Russia’s second-largest bank, raised S$400 million from two-year notes this month. It was the only Russian issuer to target Asian investors apart from Moscow-based gas company OAO Gazprom, which sold yen-denominated bonds in 2007.

Agricultural Bank of China Ltd., China’s biggest lender by customers, sold $50 million of floating-rate notes through its Singapore unit in April. The lender has offices in the city- state as well as in Hong Kong, London, Tokyo, Seoul, Frankfurt, Sydney and New York, according to its website.

“We are seeing an increased maturity and sophistication in the Singapore capital markets,” Standard Chartered’s Russell- Davison said. “2010 is set to be a big year, reflecting the confidence of both issuers and investors.”

The main-share Philippine Stock Exchange index gained 23.65 points or 0.67 percent to close at 3,554.15, ignoring an overnight bloodbath in Wall Street. This was on the back of a strong rebound by Ayala Land and Meralco, which were heavily dumped in the last minute of the previous session in what many dealers said could have been precipitated by a trading error.

Without the sharp rebound by ALI and Meralco, overall sentiment was still weak.

Although the market has yet to fully recover from Tuesday’s heavy profit-taking that pulled down the PSEi by 2.3 percent, bargain-hunters have started coming back.

Trading was mixed across sectors, with the property sector surging 5.5 percent on the back of ALI’s recovery. The industrial sector likewise firmed up.

The mining/oil and holding firms continued to take a beating as their respective indices fell 2.65 percent and 1.6 percent. The financial sector was also down 0.69 percent.

Despite the rebound, decliners overwhelmed advancers, 96 to 38, while 33 stocks were unchanged. About P4.4 billion worth of shares were traded.

Aside from ALI, investors picked up shares of PLDT, Banco de Oro, EDC and First Holdings, helping the market firm up after Tuesday’s staggering losses.

Overnight, the Dow Jones Industrial Index was down 133.96 points or 1.32 percent at 10,040.45. The broader S&P 500 index was flat while the tech-heavy Nasdaq lost 1.66 percent.

Risk aversion remains high in overseas markets as double-dip recession fears intensified following reports of weak US home sales in July.

The Stock Exchange of Thailand (SET) composite index on Monday dropped 5.94 points or 0.67 per cent to close at 884.51 points. The market value was 49.39 billion baht, with 22.63 billion shares traded.

Top five most active values were as follows;

JAS closed at 1.64 baht, down by 0.10 or 5.75 per cent.
TMB closed at 2.38 baht, up by 0.08 or 3.48 per cent.
BTS closed at 0.87 baht, up by 0.01 or 1.16 per cent.
SSI closed at 1.90 baht, up by 0.07 or 3.83 per cent.
TRUE closed at 7.30 baht, up by 0.50 or 7.35 per cent.

Union Frozen Products Group (UFP), one of Thailand’s leading frozen seafood manufacturers and exporters, has projected its annual sales will reach 15 billion baht within five years.
To achieve the goal, the company plans to foster its co-operation with international trading partners in the United States, Japan and Europe and penetrate new markets in the Middle East and Eastern Europe, said chief marketing officer Anurat Khokasai.

Next year, it will also add three to five new menu items for ready-to-eat seafood products, generating 500 million baht annually. Its new business of slicing fish for export to Japan will also help raise sales by 300-400 million baht a year.

Siam Cement Group (SCG), Thailand’s top industrial conglomerate, wants to establish a global presence for its SCG and COTTO brands of building materials starting in Asean.
Currently, Vietnam is considered the first strategic country for the move to establish the international recognition of its SCG brand for construction products and COTTO brand for sanitary ware including tiles and faucets.

Other countries in Indochina, including Burma and Cambodia, as well as the Philippines, are the next targets of Siam Cement’s Brand Management Office, which is tasked with increasing the awareness of the brands in the domestic and overseas markets.

“The move is expected to further strengthen our leadership in both the construction and sanitary ware markets,” said brand director Anuvat Chalermchai.

In Malaysia KLCI dipped below the 1,400-level to close 8.80 points lower at 1,396.97 as the local market went into negative territory after a eight-day rally as investors cut their positions on concerns that the global economic recovery could be derailed amid dismal economic data in the United States and Europe.

Major heavyweights except for Maybank and Genting slipped into the red as selling pressure persisted after the eight-day rally.

The Finance Index shed 75.16 points to 12,642.31 and the Plantation index declined 59.96 points to 6,500.27 while the Industrial Index lost 34.25 points to 2,658.85.

The FBM Emas Index slipped 69.64 points to 9,358.74, the FBM70 Index slid 97.521 points to 9,165.52 and the FBM ACE Index dwindled 48.14 points to 3,738.70.

Turnover was lower at 873.09 million shares worth RM1.73 billion from 894.451 million shares worth RM1.651 billion on Tuesday.

Decliners beat advancers 585 to 186 while 268 counters were unchanged, 327 untraded and 38 suspended.

Among actives, Time Dotcom shed two sen to 55 sen, Axiata Group dwindled eight sen to RM4.42, Tejari Technologies eased two sen to 25.5 sen and SIG Gases was flat at 88.5 sen.

For heavyweights, CIMB shed six sen to RM7.85, Maybank rose one sen to RM8.13, Proton slid 10 sen to RM4.63 and Genting improved nine sen to RM8.99.

The Main Market volume surged to 766.997 million shares worth RM1.711 billion from 736.642 million shares worth RM1.622 billion on Tuesday.

Warrants dropped to 44.912 million units valued at RM7.603 million from 53.562 million units worth RM8.191 million on Tuesday.

Turnover on the ACE market dwindled to 55.517 million units at RM10.867 million from 99.569 million units worth RM17.799 million on Tuesday.

Consumer products accounted for 52.5 million shares traded on the Main Market; industrial products 143.3 million; construction 82.6 million; trade and services 267.2 million;
technology 22.7 million; infrastructure 37.9 million; finance 70.4 million; hotels 1.3 million; properties 60.5 million; plantations 17.1 million; mining 2,000; REITs 10.8 million; and closed/fund 114,800. — Shayne Heffernan www.livetradingnews.com

Wall St is sitting at critical levels at the close and this may prompt speculative selling in ASEAN today.

Dow Jones 10,040.45  -133.96  (-1.32%)
S&P 500     1,051.87  -15.49  (-1.45%)
Nasdaq      2,123.76  -35.87  (-1.66%)

Singapore shares rose 0.61 percent on Tuesday, outperforming regional bourses like Hong Kong, as the benchmark index got a boost from Southeast Asia’s largest telcom firm Singapore Telecommunications (STEL).

By the midday break the Straits Times Index (STI) .FTSTI was up 17.91 points at 2,943.90. More than 129.3 million shares had changed hands.

SingTel’s shares rose 2 percent to S$3.00 as investors shrugged off previous concerns that a potential weakness in the Australian dollar resulting from Australia’s political stalemate will hit its bottom line.

SingTel’s Australian subsidiary, SingTel Optus, accounted for about 19 percent of its bottom line for the fiscal year ended March 31, although it made up 64 percent of its revenue.
Shipbuilders like Yangzijiang Shipbuilding (YAZG) and Cosco Corporation (COSC) outperformed the broader index, as Cosco secured new contracts and Yangzijiang said it would buy a site in China that can be used to expand its yard.

Cosco Pacific Ltd, Asia’s third- largest container-terminal operator, said profit in the first-half rose 82 per cent on recovering world trade and the sale of a stake in a logistics venture.
Net income rose to US$189.9 million (US$1 = RM3.14), or 7.96 cents a share, from US$104.5 million, or 4.66 cents, a year earlier, the terminal operator said in a statement to Hong Kong’s stock exchange yesterday.

The firm made an US$84.7 million gain from selling its stake in Cosco Logistics Co to its parent.

Shares of Yangzijiang rose as much as 2.6 percent on Tuesday to S$1.55, while Cosco rose 1.9 percent to S$1.58.

Kuala Lumpur Bursa malaysia KLCI reached a fresh 30-month high yesterday – after rising for the seventh consecutive day for a cumulative gain of 53.8-point or 4%.
There were 206 counters up, 585 down and 241 remained unchanged with total market volume of 894.4 million shares.

Among the top three gainers were LAYHONG that added 53 sen to RM1.72, FIMACOR gained 38 sen to RM4.83 and GENTING climbed by 18 sen to RM8.90.
For the heavyweights, Maybank shed 2 sen to RM8.12, CIMB shed 1 sen at RM7.9 and Sime Darby gained 4 sen to RM7.87.

Bank Negara’s recent foreign exchange (forex) liberalisation measures coupled with China allowing yuan-ringgit trade will gradually reduce the dependency on the US dollar and enhance trade financing efficiency, experts said.

AmBank Group treasury and markets managing director Teng Chean Choy said as China and Asean were now the country’s largest and second largest trading partners, the central bank’s move should prompt the pricing of exports and imports in Asian currencies, including the ringgit, and over time reduce dependence on the US dollar.

While analysts approve of AirAsia Bhd’s move to pay dividends, they expect the dividend payout will not be significant yet.

The budget carrier, which has been listed since 2004, do not have a dividend policy. However, the group is now considering to pay dividend to its shareholders.

The Jakarta Composite Index opened lower and set yet another new high of 3,145.11 in early afternoon trading before a sell-off in the final two hours.

The Jakarta Composite Index only fell 13.79 points, or 0.4 percent, to 3,114.94. About 5.5 billion shares worth Rp 4 trillion ($448.4 million) changed hands.

Decliners outnumbered gainers 116 to 77.

Among decliners were state-owned gold miner Aneka Tambang, which dropped 2.4 percent, and Astra International, the nation’s largest car retailer, which fell 1.5 percent.

Bank Bukopin shares gained the most in four months after Bisnis Indonesia reported that state social security provider Jaminan Sosial Tenaga Kerja (Jamsostek) may buy more than 30 percent of the lender, higher than initially targeted.

Bukopin surged 12.5 percent to close at Rp 720.

Bank Rakyat Indonesia, which recently announced its intention to take a majority stake in Bukopin, advanced 2.6 percent to close at Rp 9,800 per share.
Indofood Sukses Makmur, the country’s biggest maker of noodles and flour, advanced 2.4 percent to close at Rp 4,325.

Meanwhile, the rupiah slipped 0.7 percent to 8,986 per US dollar as of the local market’s close.

Other Asian currencies declined, led by the Philippine peso and South Korean won, on speculation that faltering economic growth in the United States and Europe would crimp demand for regional exports and slow down local expansion.

“Although Asia’s growth is strong, it’s economies are largely driven by export and a slowdown of economies in export destinations is negative for the region,” said Minoru Shioiri, chief manager of foreign-exchange trading at Tokyo-based Mitsubishi UFJ Morgan Stanley Securities, a unit of Japan’s largest financial group by market value.
“The environment is not encouraging investors to take risks.”

Still, HSBC Holdings in a report said investors should buy the rupiah, Malaysia’s ringgit and Philippine peso as relatively high yields attract inflows into the nations’ bond markets.
The three currencies may strengthen by 2 percent to 5.5 percent by the end of the year, according to the research report published this week.
Rupiah-denominated bonds have returned 17.3 percent this year, according to HSBC.

Overseas holdings of government bonds were Rp 177.2 trillion as of Aug. 16, an increase of 64 percent from the end of 2009, according to the Finance Ministry’s Web site.
The Stock Exchange of Thailand (SET) composite index on Tuesday lost 4.33 points or 0.48 per cent to close at 890.45 points. The market value was 38.40 billion baht, with 13.13 billion shares traded.

Top five most active values were as follows;

TMB closed at 2.30 baht, up by 0.08 baht or 3.60 per cent.
JAS closed at 1.74 baht, up by 0.19 baht or 12.26 per cent.
PTT closed at 258.00 baht, down by 6.00 baht or 2.27 per cent.
PTTEP closed at 143.50 baht, down by 4.50 baht or 3.04 per cent.
CK closed at 7.80 baht, down by 0.05 baht or 0.64 per cent.

Top energy firm PTT (PTT) gained 1.1 percent and rose to 269 baht amid hopes the national environment board would announce the list of hazardous projects later in the day, which may enable several key industrial projects, including PTT’s suspended sixth gas separation plant, to start up later this year, analysts said.

The country’s largest olefins maker, PTT Chemical PTTC.BK, was up 0.9 percent at 107.5 baht on expectations its ethylene product volume would rise along with more feedstock from its parent PTT’s sixth gas separation plant, they said. Other operators of halted projects were also expected to benefit from the approval of the list, including industrial conglomerate Siam Cement SCC, which was up 2.2 percent at274 baht.

TUF The world’s largest canned tuna maker rose 7.5 percent to 61.25 baht, at one point climbing to an all-time high of 61.5 baht, as its plan to buy French-based MW Brands Holding SAS boosted earnings outlook and share price target. — Shayne Heffernan www.livetradingnews.com

At Bursa Malaysia, 291 counters were up, 465 were down while 270 remained unchanged. There were 805.1 million shares done at a total value of RM1.34 billion. The index ended higher for the day adding 8.13 points to 1,403.15.

Among the heavyweights, CIMB jumped 22 sen to RM7.92, Genting added 11 sen to RM8.72 and PPB rose 40 sen to RM17.36.

Axiata rose 3 sen to RM4.38, Genting Malaysia added 5 sen to RM3.14 and Sime Darby gained 2 sen to RM7.83. Most Asian markets ended the day lower.
Shanghai’s A share Index slipped 0.11% to 2,639.37 and Japan’s Nikkei 225 lost 0.68% to 9,116.69.

Singapore Straits Times Index lost 0.36% to 2,925.99 and Hong Kong’s Hang Seng Index slipped 0.44% to 20,889.01.
Nymex crude oil was 13 cents higher at US$73.95 per barrel.

Crude palm oil third-month futures was RM17 higher at RM2,561 per tonne.

The ringgit was quoted at 3.1320 to the US dollar.

vProton Holdings Bhd recorded better earnings for the first quarter ended June 30 (Q1) year-on-year due to higher sales and better product mix.

The national car maker’s net profit surged 55.2% to RM84.7mil in Q1 versus RM54.5mil in the same quarter last year. Revenue rose 23.6% to RM2.29bil against RM1.85mil.

Proton said in a filing to the stock exchange that in line with the improved market sentiments, its domestic sales volume grew 17% due to demand for its three core models – Saga, Persona and Exora.

The Stock Exchange of Thailand (SET) composite index on Monday gained 0.86 point or 0.10 per cent to close at 894.78 points. The market value was 35.16 billion baht, with 10.76 billion shares traded.

Top five most active values were as follows;

PTT closed at 264.00 baht, down by 2.00 baht or 0.75 per cent.
JAS closed at 1.55 baht, up by 0.09 baht or 6.16 per cent.
SCC closed at 272.00 baht, up by 4.00 baht or 1.49 per cent.
SAMART closed at 9.65 baht, up by 0.30 baht or 3.21 per cent.
TMB closed at 2.22 baht, up by 0.06 baht or 2.78 per cent.

The National Economic and Social Development Board (NESDB) yesterday reported the economy expanded 9.1% in the second quarter from the same period last year, with strong export growth cushioning the negative impact of the political violence in April and May on the economy.

On a seasonally adjusted basis, Thailand’s gross domestic product rose 0.2% in the second quarter from the first quarter, down from a 3.3% rise quarter-on-quarter for the period from January to March.

The NESDB, which had previously maintained a 3.5% to 4.5% full-year growth forecast, said the economy rose 10.6% overall in the first half from the same period last year.

The Economy of Thailand grew 9.1 per cent year-on-year in the second quarter of 2010 as strong exports cushioned the blow from violent street protests that hit the key tourism sector, data showed on Monday.

The strong performance was seen as raising the odds of Thailand’s central bank increasing interest rates again when it meets later this week, following its first hike in almost two years in July. Gross domestic product (GDP) expanded for a third straight quarter compared with a year earlier, but at a slower pace than the breakneck growth of 12.0 per cent seen in January-March, a government agency said.

On a seasonally adjusted basis, GDP expanded 0.2 per cent in April-June from the previous quarter, after a 3.3 per cent rise in January-March, according to the National Economic and Social Development Board. The Thai economy has remained relatively resilient following two months of mass opposition protests, which paralysed parts of Bangkok and sparked violence that left 91 people dead, ending in a bloody army crackdown in May.

The better-than-expected second-quarter result was largely thanks to robust overseas demand for Thai-made goods, such as cars. The country is striving to become a regional hub for automobile production, with foreign makers such as Toyota operating factories in the kingdom. Exports soared 41.8 per cent in the second quarter of 2010 in dollar terms, on the back of a global economic recovery, the figures showed.

Household spending expanded by a robust 6.5 per cent as consumers splurged on cars and electrical goods. But growth in the hotel and restaurant industry slowed to just 0.2 per cent as the political unrest scared off foreign tourists.

Speculation is now growing that the Bank of Thailand may lift official borrowing costs for a second straight month when policymakers meet on Wednesday. In July the central bank raised interest rates for the first time since 2008 – by 25 basis points to 1.5 per cent – saying that the economic impact of the ‘Red Shirt’ anti-government protests had been relatively limited.

Shares in Singapore closed lower on Monday, with the benchmark Straits Times Index at 2,925.99, down 0.36 per cent, or 10.49 points.

About 1.34 billion shares exchanged hands.

Losers beat gainers 280 to 164.

Deutsche Bank, said on Monday it had launched an alternative stock trading platform known as a ‘dark pool’ in Hong Kong as part of its drive to grow in Asia.

A ‘dark pool’ exchange allows clients to trade financial instruments without their operations being displayed publicly, which advocates say saves costs and reduces price volatility.

Critics say the off-exchange trading systems reduce transparency, but they have gained significant ground in the United States and Europe and have spread to Asia as well.

Deutsche Bank said it would extend the operation, which it calls an Automated Trading System, to other Asian countries owing to growing demand for the service.

The bank’s operation aims ‘to give our clients the liquidity they need in today’s volatile markets,’ a statement quoted Deutsche Bank equity executive Mark Davis as saying.

‘Dark pools’ first emerged in the United States in 1990, and as their numbers grow, several companies are working to link platforms in various countries

Wilmar announced the acquisition of a Singapore sugar trading company, Windsor & Brook Trading Pte. Ltd. and Indonesian sugar refiner PT Jawamanis Rafinasi.

Olam will invest US$12 million equity in a Special Economic Zone development project in Gabon for a 60% stake in a Joint Venture with the local government.

Capitaland’s Ascott REIT has acquired S$1.39 billon portfolio of Asia and Europe properties from Ascott Ltd.

In the Philipines the market rallied past the 3,600 level today as investors continue to pick on the blue chips.

The bellwether Philippine Stock Exchange index today rallied by 0.54 percent or 19.76 points to finish at its highest level of 3,613.37 this year. The broader all-share index went up by 0.77 percent or 17.42 points to 2,279.48.

While the gains was mostly across the board during the early part of the session, three of the six counters, namely financials, industrial and mining and oil, took a breather and ended in the negative.

Most issues also finished lower. A total of 70 issues declined, 60 that advanced and the 38 stocks that were unchanged.

Overall, interest in the local equities remains vibrant as shown by the 1.39 billion shares worth P4.96 billion ($110.27 million) that changed hands.

“Share prices rallied (today) and closed at levels not seen since December of 2007. The local equities market relentlessly went up again as investors stayed bullish despite the technically overbought state of the market,” AB Capital Securities, Inc. said.

The brokerage noted that market participants have been ignoring technical indicators as projections of the macro economic and corporate earnings are been upgraded. Moreover, both investors and consumer confidence are reaching fresh highs.

Today’s rally was mostly brought about by blue chip buying. Investors bought relatively cheap industry leaders like heavyweight Philippine Long Distance Telephone Co., conglomerates Ayala Corp. and SM Investment Corp.; and property developer Ayala Land Inc.

The said issues have been lagging behind but not for long as investors are bullish on the local economy’s prospects. But in the coming sessions, the market’s momentum should slowly lose some steam to set it up for a modest technical correction,” AB Capital Securities said.

Year-to-date, the Philippine market went up by as much as 18.36 percent and the way stocks are moving appears the market is headed towards breaking the 20 percent-mark before it succumbs to selling pressure, according to Justino Calaycay of Accord Capital Equities Corp.

“A general rise in optimism across all demographics may be the underlying motive force supporting the rise in equities,” he said.

For those who are waiting for the equities to correct before positioning again, AB Capital Securities said their chance might be coming soon since indicators are already pointing to a correction. — Shayne Heffernan www.livetradingnews.com

Kuala Lumpur closed higher today at 1,395.02 up 2.46 points despite the caution it will probably slide back today after five days of winning streak.

Shayne Heffernan has identified Bursa Malaysia as having a long winning streak ahead of it and expects the exchange to break 1500 in early 2010.

Losers led gainers with 394 counters down, 316 up and 327 remained unchanged with turnover of RM1.34bil.

Among the top three gainers are F&N that added 32 sen to RM14.54, Nestle gained 18 sen to RM39.66 and JTinter climbed 16 sen to RM6.02.

And for the heavyweights, CIMB added 8 sen to RM7.70, Maybank gained 6 sen to RM8.13 and Tenaga was up 7 sen to RM8.79.

FBM KLCI rose 43.2 points or 3.2% in five straight days to 1,392.56 – a new high since Feb 8.

AirAsia Bhd’s share price rose to its highest in more than 2½ years to RM1.75, its intraday high yesterday, on strong buying interest buoyed by a strong set of second-quarter results released on Wednesday.

Its share price had appreciated 25.36% so far this year, out-performing the stock market’s benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index, which gained 9.41% in the same period.

AirAsia closed up 5 sen, or 2.98%, at RM1.73 after trading between its intraday high and a low RM1.70. It was also the sixth most actively-traded counter on Bursa Malaysia with a volume of 20 million shares.

Bloomberg quoted AirAsia group CEO Datuk Seri Tony Fernandes as saying the company was still studying whether to start paying dividends for the first time since its listing in 2004 after recording its sixth consecutive quarterly profit.

“That’s a big step forward for us,” he said, adding that AirAsia was on course to list its units in Thailand and Indonesia in the first half of next year.

On Wednesday, the carrier announced that it made a net profit of RM198.9mil for the three months to June 30, a 43% jumped from RM139.2mil in the previous corresponding period, on turnover of RM940.6mil.

AirAsia’s core-operating profit for the period was RM168.5mil, a 31% increase from RM128.4mil previously. Its core-operating profit margin for the period was at 17.9%, 0.7 percentage point higher than the 17.2% achieved a year ago.

The strong set of results came largely within analysts’ expectations and some brokerages have raised their share price target for AirAsia.

OSK Research expects AirAsia to continue to post strong numbers going forward. “With the second half being the stronger half as forward bookings are higher than last year, we expect the carrier to meet our earnings before interest, tax, depreciation and amortisation forecast of RM1.35bil for the financial year ending Dec 31 (FY10) (from RM1.3bil in FY09), although we expect new plane deliveries to result in higher depreciation,” it said.

The research house also raised AirAsia’s core pre-tax profit for FY10 by 15% and FY11 by 28% as it has revised downwards its interest costs for FY10 and FY11 by 14% and 10% respectively due to the stengthening of the ringgit and interest charges collected from its associates.

OSK also raised AirAsia’s 2011 revenue target by 4% as it tweaked it allocation for the effective planes based in Malaysia from 53 to 55.

“AirAsia’s second-quarter financial results came in above our expectations due to lower-than-expected interest expenses,” ECM Libra said in a report yesterday.

The improvement in its revenue indicated a recovery in demand for air travel, it said, adding: “This led to an increase in adjusted net profit of 27% year-on-year to RM164.6mil, bringing year-to-date total to RM271.6mil. This hits 55% of our FY10 estimates of RM492m.”

Looking ahead, it expects “demand recovery to accelerate.”

Meanwhile, Kenanga Research said AirAsia’s first six months core net profit of RM272mil came slightly above its expectations and within consensus at 56% and 47% respectively. “The FY10 outlook is stable with more good news coming up,” it said.

“The strong rebound in the second quarter and positive outlook for its earnings, coupled by positive news flow, prompted us to ascribe higher price earnings ratio to 10 times which is still at a discount to its peers,” it said.

Philippine Stock Exchange (PSE) index rose by 0. 92 percent or 33.11 points to 3,593.60, while the broader all- share index climbed by 0.9 percent or 20.18 points to 2,262.08.
Net foreign buying in the Philippine Stock Exchange doubled to P15.8 billion in the first semester from P8.3 billion in the same period last year, PSE president and chief executive officer Val Antonio Suarez said Friday.

The volume of trades in the market also jumped 32.5 percent as the daily turnover for the first half of the year stood at P4.2 billion from P3.2 billion in the same period last year, Suarez said.
He said the favorable economic backdrop and the positive outlook of investors on emerging economies such as the Philippines presented bright prospects for the stock market.
The PSE chief noted that as the US-led crisis bottomed out, the stock market has rebounded strongly. The main-share PSE index has surged 14.7 percent as of Aug. 17 and recorded its highest level in more than two years since the crisis when it closed at 3,525.81 points on Aug 10.

In 2009, the PSEi likewise gained 63 percent, a turnaround from the 48.3 percent decline in 2008.

The shares of the PSE has also benefitted from the trading rebound, gaining P15 or 5.58 percent to end at P284 each last Thursday, buoyed by its recent positive earnings announcement.

Based on its financial statement submitted to the Securities and Exchange Commission on Monday, the PSE’s net income soared 91 percent in the first six months due to higher listing and trading-related revenues and lower operating expenses. Net income grew to P148.3 million in the period from January to June, from P77.6 million in the same period last year. In the April to June quarter, net income also rose 33 percent to P65.79 million from 49.36 million in the same period last year.

“The share performance reflects investor optimism on our growth story and is a vote of confidence on the initiatives we have taken to improve the operations of the exchange,” Suarez said.

Singapore remains sensative to Wall St stock swings and today Singapore shares fell 0.61 percent and are expected to remain weak in the afternoon as investors stayed on the sidelines after poor U.S. data led to Wall Street losses overnight.

By the midday break the Straits Times Index was down 17.93 points at 2,928.84. Nearly 100 million shares had changed hands.

A report showing first-time claims for jobless benefits rose to a nine-month high at a seasonally adjusted 500,000 last week undermined hopes a labor market recovery will support the U.S. economy.

Shares of casino operator Genting Singapore GENS fell as much as 3.3 percent to S$1.49 as investors were cautious about whether a plan by its parent Genting Malaysia GENM to purchase its UK casino operations will be approved.

Precision moulding firm JLJ Holdings , whose unit was named in a lawsuit involving Apple, fell as much as 16 percent to S$0.13 after it said its executive chairman will step down for the time being.

As we predicted early in the week by Shayne Heffernan Jakarta hit yet another record high.The JCI got off to a slow start, falling as low as 3,084.99 after Thursday’s record of 3,105.35. But by the end of Friday, it managed to rebound and rise 12.37 points, or 0.4 percent, to close at 3,117.72. The benchmark index ended the week up 2.1 percent.
About 5.60 billion shares worth Rp 4.32 trillion ($479.5 million) changed hands, and gainers outnumbered decliners 108 to 74.

Overseas investors were net buyers of Indonesian equities by $230 million this week, the most in two months, according to data from the Indonesia Stock Exchange (IDX).
“The domestic market and investors are looking elsewhere for direction because the global economy is not showing any significant recovery,” said Harry Manuputty, an market analyst from local brokerage Pacific Duaribu Investindo.

The most active stock by value was Bumi Resources, the country’s largest coal producer, which soared 16 percent to Rp 1,500 after falling 2.1 percent the day before. It was the stock’s steepest gain since May 26.

On the heels of its lucrative debut on the market, Berau Coal, the country’s fifth-largest coal producer, rose 2.3 percent to Rp 10,465. The shares had shot up 11.3 percent in their first day of trading on Thursday.

The finance sector was a mixed bag, with Bank Central Asia, the nation’s biggest lender by market value, advancing 0.8 percent to Rp 6,000, while Bank Rakyat Indonesia, the second-largest bank by assets, fell 1 percent to Rp 9,600.

Telekomunikasi Indonesia, the country’s biggest telecommunications provider, dropped 2.2 percent to Rp 8,800.

The rupiah remained stable, edging down slightly to 8,973 against the US dollar as of 4.21 p.m. from 8,965 a day earlier.

The currency rose 0.1 percent this week on optimism accelerating growth in Southeast Asia’s biggest economy would keep pulling in investors from overseas. Indonesia’s prospects for winning a credit-rating upgrade this year is also supporting a buoyant rupiah.

“Market appetite for Indonesian assets is still very high,” said Mika Martumpal, an senior analyst at Bank Commonwealth, adding that the odds of an upgrade “adds some incentive.”
Fitch Ratings in January upgraded Indonesia to BB+, the highest noninvestment grade. Standard & Poor’s followed suit in March, and Moody’s Investors Service adjusted its outlook to “positive” in June. Standard & Poor’s and Moody’s both rank the nation two levels below investment grade.

The robust Stock Exchange of Thailand SET index closed at 893.92, up 2.69 or 0.30% in trade worth 40.23 billion baht on Friday.

Stocks with most active value were as follows:

TRUE increased to 6.65 baht, up 0.30 baht.
PTT was unchanged at 266.00 baht.
CPF increased to 26.50 baht, up 0.25 baht.
JAS increased to 1.46 baht, up 0.10 baht.
QH increased to 2.40 baht, up 0.06 baht.
Coal producer Banpu fell 4.00 baht to 614.00 baht

Bangkok Banks stand out as incredible value after news today that the combined lending portfolio of commercial banks this year is expected to expand by about nine per cent – in line with the target, Sorasith Sunthornkes, assistant governor at the Bank of Thailand (BoT), said on Friday.

The banks’ lending was up 5.9 per cent in the first six months of the year compared to the same period last year, on the back of economic recovery.

Stable politics had also boosted the confidence of people, encouraging them to seek more loans, said Mr Sorasith.

The assistant governor believed telecommunication firms have investment plans on network expansion ahead of the introduction of a 3G mobile phone system and they will need more capital.

Loans to property developers, particularly for housing and condominium projects along the electric train routes continued to expand, he added.

As of the end of July, the non-performing loans (NPLs) of commercial banks stood at 4.9 per cent, slightly up from 4.8 per cent in June due to the expansion in lending.

The Thai economy will be challenging in the second half after exports were weaker in July, Finance Minister Korn Chatikavanij said Friday, although he said it’s not clear whether it signals a slowdown in shipments.

He told reporters that the trade deficit in July of $939 million also helps take pressure off the Thai baht, which has gained 4.8% against the U.S. dollar so far this year.

“Although July export data still looked good, it’s below June. I’m not sure whether this is the sign that exports have slowed down,” he said, adding that overall the economy still looks fine but will need to be monitored closely.

Southeast Asia’s second-largest economy swung to a trade deficit in July after imports surged 36.1% to a 23-month high of $16.5 billion, while exports rose 20.6% on year to $15.56 billion.

Exports grew for the ninth consecutive month in July, but slowed from June’s 46.3% on-year surge to a historical high of $18.04 billion.

Korn said the Bank of Thailand has always taken care of the baht, which is the key reason it remains in line with regional peers. — Shayne Heffernan www.ebeling-heffernan.com

Jakarta, Kuala Lumper and Bangkok seem far less driven by US factors for now as growth is being internally powered and we do not see them falling as far as other regional markets.
Pressure is growing on the Obama administration to stimulate jobs and home buying, following in the pattern he has established we expect the White House to announce such measures in the next 14 days sparking a strong USA rally that will filter out across the ASEAN markets.

Best buying today would be Genting, AirAsia, Banks and Miners, Tiger Airlines is set to fall much firther after senior staff trimmed their holdings today. AirAsia is winning the low cost market war and Tiger Airlines mayt slip under $1 soon.

The Stock Exchange of Thailand (SET) composite index on Thursday gained 11.21 points or 1.27 per cent to close at 891.23 points. The market value was 43.31 billion baht, with 12.35 billion shares traded.

Top five most active values were as follows;

PTT closed at 266.00 baht, up by 6.00 baht or 2.31 per cent.
PTTCH closed at 107.00 baht, up by 4.00 baht or 3.88 per cent.
PTTEP closed at 151.50 baht, up by 1.50 baht or 1.00 per cent.
SCB closed at 93.50 baht, up by 0.75 baht or 0.81 per cent.
CPF closed at 26.25 baht, up by 0.50 baht or 1.94 per cent.

Car exports for July were up 139 per cent against the same month last year and 26.45 per cent from June to 87,605 units, spokesman for the automobile industries group in the Federation of Thai Industries Surapong Paisitpatanapong said on Thursday.

Export values in July totalled 39.83 billion baht, an increase of 129.41 per cent from the same month last year.

Vehicle exports in the first seven months of the year (January to July) were 505,783 units, up 115.57 per cent on the same period last year. Total export value was 234.97 billion baht, an increase of 86.95 per cent, the spokesman said.

Production output in July stood at 145,771 units, up 94.41 per cent on the same month last year, but down 2.09 per cent from June, said Mr Surapong.

He said the vehicle production output in the first seven months of the year totalled 914,765 units, up 97.12 per cent from the same period last year.

Domestic automobile sales for July were 65,672 units, down 6.92 per cent from June, but up 52.2 per cent from the same month last year on the back of a recovering economy, he added.

The domestic car sales in the first seven months of the year totaled 422, 364 units, an increase of 53.8 per cent from the same period last year.

Mr Surapong said production output from August to October was projected at 416,050 units.

The ST index climbed 27.4 points to end at 2,946.77 on a trading volume of 1,938 million shares.

There were 296 rises against 165 losers by the close of the session.

Shares of property companies rose on news that demand for office space remains strong, with many tenants planning to expand their operations.
Property developer CapitaLand shares rose 2.8 percent at S$4.05 while City Developments rose 2.8 percent to S$11.94.

Shares of Tiger Airways were also actively traded, losing 3.0 percent at S$1.92, after key shareholders trimmed stakes, a move that is a great concern going forward.
Starhub fell 2.1 percent to S$2.33

Genting Singapore Gets Majority Vote For Divestment Of UK Casinos; No Dividends This Year

Shareholders of Genting Singapore have approved the sale of its UK casinos, including Crockfords, the world’s oldest private gaming club to parent Genting Malaysia for £340m ($716m) during an extraordinary general meeting (EGM) on Aug 18. Meanwhile, Genting Singapore posted a second-quarter profit of $397m, a sharp turnaround from the loss of some $51m on-year. A total of $860.8m in revenue for its Resorts World Sentosa integrated resort (RWS) has also been reported. Although Genting has not given a breakdown of earnings from its gambling operations, some analysts believe the segment contributes about 70% to 90%. Separately at the EGM, Genting Singapore revealed that it could issue its first cash dividends in as early as two years as current loan agreement had restrictions on its dividend issuance till 2011.

Soilbuild To Divest Logistics Warehouse For $60m

Integrated property developer Soilbuild Group Holdings is divesting Penjuru Logistics Hub, a purpose-built logistics warehouse located near Jurong Island and Jurong Port, for $60m. The integrated boutique developer is expecting to recognise a gain of about $16.3m from the sale of the property at 34 Penjuru Lane, which has a remaining lease of 22 years. The warehouse, which has 0.4m square feet of business space, will be leased back to Soilbuild for five years at about $5m per year. ‘As at end-June 2010, Penjuru Logistics Hub had been leased to a range of logistics support businesses, including those for petrochemical and maritime companies located at Jurong Island and Jurong Port respectively,’ said Soilbuild.

The Kuala Lumpur KLCI ended the trading day up half-percent to 1,392.56.

At Bursa Malaysia, TMC Life, which saw the entry of a new major shareholder, lost 3 sen to 52 sen.

AirAsia, which posted second quarter net profits that were largely above expectations, gained 5 sen to RM1.73.

BAT rose 16 sen to RM44.36 while JT International jumped 18 sen to RM5.86.
F&N gained 20 sen to RM14.22 and Dutch Lady added 18 sen to RM14.58.
Genting was down 10 sen to RM8.77 and Genting Malaysia was up 3 sen to RM3.07.
Pos Malaysia added 15 sen to RM3.27 and TM gained 10 sen to 3.57.
Nymex crude oil was 45 cents higher at US$75.87 per barrel at 5pm.
Crude palm oil for November delivery was down RM22 to RM2,588 per tonne.

The ringgit was quoted at 3.135 to the US dollar.

Although the economy expanded by 8.9% in the second quarter (Q2) ended June 30 from a year ago, which then produced a first-half (H1) growth of 9.5%, going forward the pace of expansion is likely to slow.

The economy’s leading indicators have been growing at a slower pace with the industrial production index showing a downward trend since May on a year-on-year basis while exports have fallen over a similar period.

AmResearch Sdn Bhd senior economist Manokaran Mottain said that even if the economy were to slow down in the second half to 6.5%, an 8% full-year gross domestic product growth was still achievable.

He did not see any more increases in the OPR for the year as “a hike will choke off growth at this point”.

Meanwhile, RHB Research Institute Sdn Bhd economist Peck Boon Soon was still leaning slightly towards another OPR hike before year-end.

“Although we think Bank Negara is probably done with revising the rates upwards this year, there remains a slight possibility since the economy did well in the first half and was above expectations in Q2,” he said.

AirAsia Bhd’s net profit jumped 43% to RM198.9mil for the second quarter ended June 30, from RM139.2mil a year ago, on the back of strong growth in passenger volumes, ancillary income and higher average fares.

Its revenue for the quarter was 26% higher at RM940.6mil from RM747.9mil a year ago. It reported earnings per share of 7.2 sen versus 5.9 sen a year ago.
For the six months ended June 30, AirAsia posted a net profit of RM423mil on revenue of RM1.82bil.

While AirAsia posted a record quarter, Malaysia Airlines posted a net loss of RM535mil due mainly to derivative losses from its fuel hedges. MAS’ revenue stood at RM3.2bil for the quarter ended June 30.

In a teleconference yesterday, group CEO Datuk Seri Tony Fernandes was confident of a strong second half for AirAsia. He sees a tremendous upside for its operations in Thailand and Indonesia while its ancillary income registered massive growth.

“Forward bookings are looking very good, The fourth quarter is traditionally our strongest quarter. To head into our strongest season on the back of a soaring first quarter and a record-breaking second quarter puts us in a fantastic position,” he said.

During the second quarter, the group’s core operating profit for the period was RM168.5mil, a 31% increase over RM128.4mil core operating profit achieved a year ago.

The core operating profit margin for the period was at 17.9%, 0.7 percentage point higher than the 17.2% core operating profit margin achieved a year ago.

“There were no unrealised translation gains in the quarter as gains from the slight strengthening of the ringgit were offset by losses from the change in the fair value of currency derivatives,” it said in the notes accompanying AirAsia’s financial results.

Commenting on its ancillary growth, Fernandes said: “We have actually reached our target of RM40 spending per pax that we set for the last quarter. We have unearthed a gushing revenue stream that can boost the bottom line and also serve as a buffer to rising fuel prices.”

He said baggage fees and AirAsia Cargo were significant contributors to ancillary income for the group.

Meanwhile, AirAsia’s associates Thai AirAsia Co and Indonesia AirAsia recorded good performance in the second quarter.

“Indonesia AirAsia has staged a strong turnaround and we expect greater things,” Fernandes said, adding that passenger volume grew by 10% year-on-year to 947,786 from 863,440 last year.

In the second quarter, Thai AirAsia recorded a net profit of RM4.9mil on revenue of RM267.4mil while Indonesia AirAsia’s net profit rose to RM39.6mil on revenue of RM233.2mil.
During the quarter, the group carried a total of 6.07 million passengers while the load factor increased to 77% from 75% in the same period last year.

Fernandes said its cost per average seat per km (ASK) of 3.62 US cents was mainly due to higher average fuel cost. He said the average fuel price in the second quarter was US$100 per barrel against US$60 a barrel in the same period last year.

However, its revenue ASK grew by 26% to 4.88 US cents in the second quarter from 3.87 US cents perviously. “I think we remained prudent with hedging, but it’s very useful too – that we’re not trying to bet where the market’s going, we’re just trying to match our forward sales with our oil hedging,” he said when asked on its hedging status.

Fernandes said its net gearing was expected to improved after the deferment of aircraft in 2011. “We have deferred seven A320s for 2011 to 2015. We are planning to reduce aircraft deliveries to 10-12 from 2012 onwards,” he said. He expected AirAsia’s gearing ratio to be below two times from 2011 onwards.

On aircraft financing, he said the financing for all the aircraft in 2010 was secured. As of June 30, the group has a total of 85 planes. Of the total, 50 planes are for Malaysian operations, while Thailand has 20 and Indonesia 15.

Fernandes was confident that the group’s cash balance would surpassed RM1bil by year-end. It has a current cash balance of RM858mil.

“We’ll easily surpass that by year-end. We will be getting re-payment from our associates in Thailand and Indonesia.” He added that with the listing of associates, the amount due from associates could potentially be converted to new shares to maintain shareholding in Thai AirAsia and Indonesia AirAsia.

“It is very premature for me to comment. We believe we have a very strong brand in Thailand. We are not duly concerned. We are not focusing on our competitor, but ourselves,” Fernandes said when commenting on Tiger Airways’ venture into Thailand.

Analysts contacted said AirAsia’s strong performance was above their expectation.

“They (AirAsia) did superbly despite the significant rise in the fuel bill due to the higher oil prices. And that’s largely thanks to the strong growth in ancillary income which sort of ‘offset’ the higher fuel expenses. The deferment of aircraft significantly reduces the debt burden, and should contribute positively to earnings via lower financing costs and better yields through higher loads,” an analyst said.

Another analyst said AirAsia’s operational numbers look very good and were slightly above his expectations.

The Jakarta index rose 33.26 points, or 1.1 percent, to 3,105.35. Volume soared, with about 7.1 billion shares worth Rp 7.8 trillion ($874 million) being traded, up from 4.4 billion shares on Wednesday.

Foreign net buying surged to Rp 1.76 trillion, up from Rp 214.65 billion the day before.

The JCI set its previous high on July 29, when it closed at 3,096.82.

Berau, the nation’s fifth-largest coal producer, was the most active stock by value, rising 11.3 percent to Rp 445 in its market debut after raising Rp 1.4 trillion in an initial public offering to fund expansion.

Finance stocks also drove gains on the index, with Bank Mandiri, the country’s biggest lender by assets, up 2.5 percent to Rp 6,050 on news the bank would double its rights issue this year to as much as Rp 14 trillion.

Bank Danamon Indonesia advanced 1.9 percent to Rp 5,400 after announcing it was targeting 15 to 20 percent loan growth this year after its credit expanded 15 percent in the first half.

Infrastructure stocks had another strong day as cement maker Indocement Tunggal Prakarsa jumped 3.2 percent to Rp 17,600 while Semen Gresik climbed 1.7 percent to 8,950.
Gains were fueled by President Susilo Bambang Yudhoyono’s speech this week reaffirming the government’s commitment to development.

Pardomuan Sihombing, head of research at Recapital Securities, said he was optimistic the index would soon reach 3,200 points, provided Bank Indonesia kept its benchmark interest rate at a record-low 6.5 percent.

“Fundamentally, we are far from ‘bubble territory,’ so we can achieve [3,200]. The only watch factor is inflation,” he said. “We hope the central bank will not raise interest rates, with the temptation high given the rising inflation rate.”

The rupiah on Thursday crept up to 8,965 per dollar as of 4:00 p.m., from 8,968 the day before.

“The rupiah will be stuck as there are a lot of foreign fund inflows but on the other side, there are concerns that the pace of appreciation will affect exporters,” said Muhammad Fauzi Halim, a trader at Bank Resona Perdania.

The government has been keeping a close eye on the currency and wants to keep the rupiah trading between 9,000 and 9,200 to protect the competitiveness of Indonesian goods abroad.

The rupiah has strengthened 1 percent in the past month, compared with 3.5 percent for the Philippine peso and 3.2 percent for Malaysia’s ringgit. — Shayne Heffernan www.livetradingnews.com

The Singapore Market looks very strong going forward, there is an excess of capital on the sidelines in Singapore according to Shayne Heffernan of Ebeling Heffernan pointing to Capitaland that yesterday sold $350 million worth of 10-year, Singapore-dollar bonds more cheaply than expected, in a debt issue that was heavily oversubscribed by investors hungry for returns.

The property firm, South-east Asia’s biggest developer, had planned to sell just $150 million worth of the senior, unsecured bonds, but it agreed to increase the size of the issue by $200 million in the face of overwhelming demand from investors.

The bond sale was announced at 10am and it took just 30 minutes to draw orders of $150 million, said Clifford Lee, head of fixed income at DBS Group, the sole manager of the sale. When the sale ended four hours later, it had attracted $1.2 billion worth of orders from 78 accounts – eight times the planned issue size.

The bond sale was mainly intended to establish a benchmark for CapitaLand’s 10-year borrowing costs, Mr Lee said.

Singapore investors bought 90 per cent of the bonds with the remaining 10 per cent sold to overseas investors, mainly in Hong Kong.

Singapore shares rebounded from two days of losses, rising 0.1 percent as investors were encouraged by strong U.S. corporate earnings which could further bolster Asian markets.
At the lunch break, the Straits Times Index (STI) was up 4.14 points at 2,927.50. More than 234 million shares had changed hands.

U.S. home building and industrial output both increased in July, and Wall Street rose overnight on higher-than-expected earnings from two U.S. retail giants and a $39 billion takeover bid in the farm sector.

“The markets overnight were bolstered by better-than-expected U.S. industrial production figures. I think the markets globally had been a bit overly focused on the negative news over the last few weeks,” said David Cohen, an economist at Action Economics.

“Although there is plenty of uncertainties clouding the outlook, but I think the global economy can escape a double dip, and in that context the Asian economies should be able to continue posting positive growth even if the pace is somewhat slowing,” he said.

Shares of the world’s largest listed palm oil plantation firm, Wilmar International (WLIL.SI), rose as much as 2.4 percent after index provider MSCI (MSCI.N) raised the weighting on the company on its Singapore index.

UBS said in a report Wilmar now accounts for 5.3 percent of MSCI Singapore index from 3.6 percent, ahead of the broker’s expectation of 5.1 percent.

The JCI climbed 19.49 points, or 0.6 percent, to 3072.09 on Wednesday. Volume was heavy, with 4.4 billion shares worth Rp 4.1 trillion ($455 million) changing hands. Gainers outnumbered decliners 111 to 93.

President Susilo Bambang Yudhoyono forecast higher growth and promised more development in his Independence Day address.

“The presidential speech on Monday that focused on infrastructure development provided local sentiment to boost the [Jakarta Composite Index.

“The JCI also received a boost from the regional market, especially after the Conference Board’s Tuesday report on China,” Janson said.

The board’s leading economic index on China climbed 0.8 percent for June, helping allay fears of slowing growth in the Asian giant.

Infrastructure stocks reaped immediate benefit from Yudhoyono’s plans to lift spending on development.

Toll-road operator Jasa Marga advanced 5.7 percent to Rp 2,800, while Indocement Tunggal Prakarsa, the nation’s second-biggest cement maker, surged 5.6 percent to Rp 17,050.
On the downside, the agriculture sector slipped as Astra Agro Lestari, the nation’s biggest listed palm oil plantation company, declined 1.5 percent to Rp 19,800.

Palm oil futures retreated to 2,621 ringgit on Wednesday after falling 1.1 percent to 2,646 ringgit ($837) a metric ton in Kuala Lumpur the day before.
The rupiah was stable at 8,968 against the dollar as of 4:25 p.m. The currency was little changed amid continued speculation the central bank would act to curb appreciation that may hurt the nation’s exports.
The government’s benchmark 10-year bonds fell, pushing their yield to a three-week high.
According to Bank Indonesia Governor-designate Darmin Nasution, the rupiah was expected to trade between 9,000 and 9,200 this year.
“The statement from the central bank has restricted the range in which the currency is likely to trade,” said Aris Setiawan, a foreign-exchange trader at Bank Chinatrust Indonesia in Jakarta.
“Still, there is room for the currency to strengthen as it has averaged 9,160 this year.”
The rupiah has gained 12 percent in the past year, matching Malaysia’s ringgit as Asia’s best performer, with overseas investors this year buying $1.43 billion more in Indonesian shares than they sold.
Yudhoyono on Monday predicted that economic growth would accelerate to 6.3 percent next year from an expected 6 percent in 2010. He also raised the growth target for 2014 from 7 percent to 7.7 percent, with 10.7 million new jobs to be created.
Malaysian based casino operator Genting Malaysia Bhd continued to be actively traded on news that its unit from New York had won the bid to operate a video lottery terminal facility in New York, and plans to invest US$1.3bil (RM4.9bil) in the project.
Thie evening, Bank Negara Malaysia will announce the country’s second quarter (Q2) gross domestic product. Based on consensus estimates, Q2 figures are expected to register at 8.1%.
Meanwhile, the preliminary Economic Transformation Programme roadmap which is a key component of the New Economic Model based in part on the now completed National Key Economic Areas Lab, has been delivered to the Government.

The Government will now review and finalise the proposed roadmap, which will serve as a key part of the implementation of NEM.

At 5pm, the FBM KLCI was up 7.04 points to 1,385.51. There were a total of 334 gainers and 377 losers with 312 stocks unchanged.

Tokyo’s Nikkei 225 was up 0.86% to 9240.54 and Hong Kong’s Hang Seng Index was down 0.54% to 21,022.73.

Shanghai’s A index was down 0.21% to 2,666.3 while Taiwan’s Taiex Index was down 0.09% to 7,924.10.

Seoul’s Kospi Index was up 0.40% to 1761.99, with Singapore’s Straits Times Index was up 0.13% to 2927.22.

Nymex crude oil lost 60 cents to US$76.33 per barrel.

Spot gold was down US$2.28 to US$1,222.57 per ounce.

The ringgit was quoted at 3.1558 to the US dollar.

Genting Malaysia Bhd’s unit Genting New York LLC, which has won the bid to operate a video lottery terminal facility in New York, plans to invest US$1.3bil (RM4.19bil) in the project.

It had earlier been speculated that Genting New York had won the bid, but the deal was “not fully in the bag” yet, pending approvals from the city’s top politicians.

A source close to the company said that Genting New York had signed the agreement last week but only made the announcement in New York yesterday.

According to a copy of the proposal submitted by Genting to the New York lottery authority, Genting New York will pay a licensing fee of US$380mil (RM1.22bil), above the minimum US$300mil (RM966mil) required by the state.

Genting New York intends to spend a further US$350mil to develop the facility, which upon full completion will span 413,000 sq ft and contain more than 4,500 video lottery terminals or electronic slot machines.

Dubbed Resorts World New York, the proposed three-storey facility will also contain several restaurants, water features, an outdoor terrace connected to the Aqueduct racetrack which will be able to accommodate up to 10,000 people and a 2,200-bay car park.

The main-share Philippine Stock Exchange index added 32.57 points or 0.93 percent to finish at 3,534.80.

The market was on an upswing throughout the session, still driven by a cash-rich financial market seeking higher yields in a prolonged low-interest rate environment. All counters were up, with the property and mining/oil sectors benefiting most from the day’s run-up, respectively rising by 1.6 and 1.37 percent.

Value turnover amounted to P4.77 billion compared to the average daily turnout of just slightly above P3 billion. There were 85 gainers and 46 decliners while 37 stocks were unchanged.

The day’s most actively traded stocks were PLDT, Filinvest Land, EDC, Metro Pacific Investments, Megaworld, Semirara, Metrobank and Lopez Holdings.

The Stock Exchange of Thailand (SET) composite index on Wednesday gained 14.24 points or 1.64 per cent to close at 880.02 points. The market value was 41.14 billion baht, with 12.34 billion shares traded. Shayne Heffernan predicted sometime ago the SET would break 1000 in March 2011.

Top five most active values were as follows;

TMB closed at 2.16 baht, down by 0.02 baht or 0.92 per cent.
JAS closed at 1.28 baht, down by 0.01 baht or 0.78 per cent.
CPF closed at 25.75 baht, up by 0.75 baht or 3.00 per cent.
PTTCH closed at 103.00 baht, up by 3.75 baht or 3.78 per cent.
TCAP closed at 32.75 baht, up by 1.00 baht or 3.15 per cent.

The baht’s recent appreciation was in line with other Asian currencies and had no impact on the country’s economic growth, Bank of Thailand governor Tarisa Watanagase said on Wednesday.

The strengthening of Thai baht was not worrying as the level of fluctuation was low and there were no signs of irregular speculation, Mrs Tarisa said.

“However, exporters and importers are advised to use hedging to avoid foreign exchange risk,” she said.

The baht strengthened because exporters were selling US dollars, as continual export expansion and stable politics increased people’s confidence and capital inflow, she said. — Shayne Heffernan www.livetradingnews.com