Southeast Asian markets rally

Southeast Asian stock markets rallied on Friday but volume was thin and worries about rising oil prices, which could hurt economic growth, meant trading would continue volatile next week, analysts said. Brent oil traded above $112 a barrel as the revolt in Libya sparked fears of supply shortages, despite assurances by top oil exporter Saudi Arabia that it would step in to fill any shortfall.
"The markets will still be volatile despite today's gains, which were due to bargain-hunting," said Song Seng Wun, a regional economist at CIMB-GK Research in Singapore. "Hopes of an end to the Libyan crisis calmed down the markets ... But developments in the Middle East and North Africa are likely to decide when the market will return to normal."
Warut Siwasariyanon, senior analyst at broker Finansia Syrus Securities in Bangkok, agreed. "There's still uncertainty and the situation in the Middle East and oil markets will be key market indicators for the coming week."
Singapore gained 1.8 percent and the Philippines edged up 0.2 percent as both markets recovered from a near-six-month low. Thailand ended 0.9 percent firmer, Indonesia 0.1 percent and Vietnam 1.2 percent, but Malaysia was flat. The MSCI index of Asia ex-Japan stocks was up more than 1.1 percent at 1010 GMT but down nearly 3 percent on the week.
Vietnam fell 7.3 percent on the week, the Philippines 3 percent and Singapore 2 percent. Despite the generally weaker trend, foreign investors were net buyers in some markets this week. They took $138.8 million of Thai shares up to Thursday, while the Philippines saw net inflows of $20.7 million for the week.
However, Indonesia suffered a net outflow of $44.2 million. In Bangkok, banks led the rise on the day, with Kasikornbank gaining 4.1 percent and Siam Commercial Bank 2.5 percent. Thailand's top energy firm PTT, which gained 0.9 percent, announced long-awaited plans to merge two petrochemical and refining affiliates, creating Southeast Asia's second-biggest petrochemicals firm by market value. A Reuters poll on Friday showed Thailand's stock market could gain around 22 percent from the current level by the end of 2011.