Southeast Asian markets: Philippine index climbs to an all-time high

Southeast Asian stock markets pushed higher on Friday as investors bought Philippine property, Indonesia consumer companies and banks in the region seeking growth picks as risk appetite improved. The region's stock markets gained back some ground lost early in the week, on signs that euro zone officials will soon approve a long-awaited bailout for Greece, and after jobs and factory data pointed to a healthier US economy.
The Philippine index climbed 2.4 percent to an all-time high. It rose 1.97 percent this week, making it Southeast Asia's best performer. Late buying pushed Jakarta's Composite Index 1.3 percent higher to a one-week high.
The market has been hurt by foreign selling, making it Southeast Asia's second-worst performer this year. Indonesia reported $61 million in foreign outflows this week to Thursday, according to Thomson Reuters data. Broker Morgan Stanley said on Friday it had raised its rating on Indonesia to overweight from equal weight, noting its relatively low valuation and that it was technically oversold.
The broker upgraded its rating on Malaysia while downgraded ratings for Thailand and the Philippines, citing a rise in the price of oil as a factor expected to affect major oil importers. Jakarta-based Jemmy Paul, head of equity of Sucorinvest Asset Management, said Indonesia's long-term outlook and improving global market sentiment boded well for sentiment on blue chip firms.
"The slowdown in global economy and a contagion risk from Europe are not as bad as we thought. I think, further demand for riskier assets may support Indonesian stocks from this point," he said. Consumer stocks led gainers in Jakarta, with PT Astra International Tbk, the leading motorcycle dealer and a proxy for Indonesia's consumer sector, rose 3.4 percent, after a 3 percent loss over the past two sessions.
Stocks in Singapore was up 0.8 percent, Malaysia gained 0.4 percent, Vietnam rose 1.7 percent and Thailand was 0.9 percent higher. In Singapore, DBS Group Holdings Ltd, Southeast Asia's largest bank, rose 1.75 percent. The Singapore government, in its budget released on Friday, said it will set aside S$3.6 billion to help offset the goods and services tax for lower-income families, over five years. It also reduced quotas for foreign workers in some sectors, making it harder for businesses to hire skills from overseas.
Among gainers in the region, Thailand's biggest bank Bangkok Bank Pcl was up 2.1 percent, Malaysia's CIMB Group Holding was 0.4 percent higher and Philippine Ayala Land Pcl surged 6.8 percent. Low interest rate environment has bolstered sentiment for property firms in Manila. Ayala Land had gained 26.7 percent this year, the second-best performing of the Philippine bourse.