SE Asia Stocks: Malaysia strong in week after election

10 May

KUALA LUMPUR, May 10 — Major Southeast Asian stocks edged up today, with Malaysian index notching up its best week since July 2009 following the weekend general election and Indonesian benchmark index closing the week at an all-time high amid selective buying.

Gains in banks such as Malayan Banking Bhd and AMMB Holdings Bhd helped Kuala Lumpur’s Composite Index reverse recent losses and end up 0.36 per cent for the day. It gained 4.6 per cent in the week, the region’s best performer.

The general election that eased political concerns pushed the Malaysian index to a record close of 1,776.73 on Tuesday but it fell back mildly in two successive sessions after some political trouble.

Jakarta’s Composite Index gained 0.33 per cent to 5,105.94, topping Wednesday’s record close, with a weekly gain of 3.7 per cent, the second best.

Citi Research maintained its JCI target of 5,300 and was positive on property, cement, consumer and media sectors, it said in a report dated May 9. Among its top picks, shares in Semen Indonesia rose 2.2 per cent on Friday.  

“Our index target remains 5,300, based on a bottom-up approach, with a future fuel price hike (currently postponed) a medium- to longer-term catalyst given its likely positive impact on the current-account deficit and government infra spending,” it said.

Across the region, investors picked large caps such as Philippine Ayala Land Inc and Singapore bank DBS Group Holdings Ltd in an ongoing reporting season, with  most sharemarkets marking a strong gain for the week. – Reuters




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