Manila shares hit fresh all-time high, Thai climbs

Philippine shares hit a fresh all-time high and Thai stocks climbed to their highest in almost 16 years on Friday, helped by selective buying in blue chip, but most other Southeast Asian stock markets fell as players locked in profits. The Philippine main index ended up 2.3 percent at a record high of 5145.89 points, pushing gains for the week to 3.3 percent, its strongest weekly rise in almost five months.
It has been the best performer among larger markets in Southeast Asia so far in 2012, surging nearly 18 percent and eclipsed only by a 25 percent rise in Vietnam. Property shares outperformed in Manila as low interest rates supported the outlook of the sector. Mall developer SM Prime Holdings Inc surged 11.5 percent and property developer Ayala Land Inc advanced 5.8 percent.
Hans Sicat, president of Philippine Stock Exchange, attributed the market rally to positive factors at home and strong buying interest of both foreign and local investors. "This is very much in line with a number of factors coming together, which include good macroeconomic indicators and a very stable monetary policy," he said. "We've seen rating agencies giving the Philippines a vote of confidence with upgrades and we've also seen the markets pricing that in. We've also benefited from issues pertaining to eurozone making emerging markets including the Philippines attractive."
Net foreign buying of Philippine stocks to March 15 was 27.99 billion pesos ($651 million), he said. Thailand's SET index rose 1.6 percent to its highest since July 1996. Heavyweight energy shares were among leaders in Bangkok, with the biggest PTT Pcl rising 1.5 percent along with a rebound in Brent crude on Friday. Market players focussed on the local economy and the resilience of domestic demand, brokers said. "The buying today was across the board, showing that optimism about corporate earnings are pretty much strong," said said Viwat Techapoonphol, strategist at broker Tisco Securities.
"Risk appetite should remain good because of the improving global outlook. The SET index could test 1,220 by early April," he said. Other stock markets in the region pulled back from the day's highs, with Singapore and Malaysia both ending down 0.5 percent and Indonesia falling 0.3 percent.
The Ho Chi Minh Stock Exchange's Vietnam Index edged down 0.75 percent. The region was mixed on the week, with Singapore gaining 2 percent, Vietnam 1.5 percent and Indonesia 0.9 percent. Malaysia fell 0.5 percent on the week. Strong US economic data boosted global market sentiment early in the week but comments from Chinese Premier Wen Jiabao dampened expectations of policy easing in China.
Asian shares steadied on Friday while the dollar took a breather after its recent broad rally spurred profit-taking, with some investors wondering if a fresh batch of encouraging economic data would put further upward pressure on US yields. The MSCI's broadest index of Asia Pacific shares outside Japan fell 0.18 percent by 0847 GMT while the MSCI index for Southeast Asia, made up of selected regional stocks, was up 0.35 percent.