South East Asian markets: Indonesia, Philippines at three-month high

Most Southeast Asian stock markets gained on Wednesday on bargain hunting as investors shrugged off China's largely expected rate increase but worry about inflation kept investors in check. Rising oil prices because of expected short supplies in the Middle East on political turmoil and renewed debt problems in Europe raised concern over the sustainability of gains in stocks, analysts said.
Indonesia gained 1.1 percent led by financials to a three-month closing high on inflows of $17.8 million as the country's statistics bureau said it saw inflation easing in April on both an annual and monthly basis. The Philippines added 1.1 percent mainly on property shares to hit a three-month closing high, a day after Manila's bourse saw a $219.8 million foreign inflow, Reuters data showed.
Singapore rose 0.6 percent to a two-month high close and Vietnam closed 1.7 percent firmer at a two-week high. Thailand, the region's best performer this year, was closed for a holiday, while Malaysia closed flat with a foreign inflow of $19.7 million. The MSCI index of Asia Pacific shares outside Japan was up 0.6 percent at 0915 GMT. Inflationary concerns along with a renewed debt problem after credit rating agency Moody's cut Portugal's sovereign debt by one notch on Tuesday could hurt sentiment, analysts said.
Traded volumes in Singapore, Malaysia, and Vietnam were lower than their 90-day average volume, but Indonesia saw a higher volume on Wednesday. In Singapore, Gallant Venture, which develops industrial parks and resorts in Indonesia's Bintan and Batam, jumped 17.6 percent after DBS Vickers resumed its coverage with a buy call, while Ezion Holdings gained 2.2 percent after announcing a joint venture with Buccaneer Energy had won a $109.5 million contract to provide a jack-up rig for oil and gas activities in Alaska. In Kuala Lumpur, MAA Holdings Bhd jumped 22.5 percent as it reached a deal to sell a 70 percent stake in its insurance subsidiary to Zurich Insurance Co Ltd for about 1.2 billion ringgit ($396 million).