Southeast Asian stocks: Malaysia, Indonesia hit record highs

Southeast Asian stocks finished mostly higher on Tuesday and both Indonesia and Malaysia hit all-time closing highs as further signs of economic recovery in the United States bolstered sentiment in the region. Jakarta's Composite Index climbed 1.2 percent to a record high of 4,215.44, led by a 39 percent gain in PT Bank Danamon Indonesia Tbk, also the most actively traded stock on the bourse.
Shares in Indonesia's sixth-biggest lender surged after a $7.2 billion take-over bid by Singapore's DBS Group. "The Danamon take-over is positive for sentiment towards Indonesia's banking industry, signalling that it's still performing well and attractive for foreign investors," said Robby Hafil, a banking analyst at Trimegah Sekuritas. DBS shares, the most actively traded on Singapore's bourse, fell 2.8 percent, dragging the city-state's Straits Times Index 0.04 percent lower and erasing early gains. The Philippine index bucked the regional trend to fall 1.1 percent after three days of gains.