Most Southeast Asian markets ended higher on Wednesday tracking Asian peers with investors awaiting the upcoming European Central Bank (ECB) policy meeting for cues. The ECB is expected to announce a six-month extension to its quantitative easing programme next week, according to a majority of economists polled by Reuters.
Given that markets are eager for catalysts, ECB's QE extension would be considered positive for equities, according to Taye Shim, head of research at Daewoo Securities Indonesia. MSCI's broadest index of Asia-Pacific shares outside Japan rose as much as 0.5 percent, while European shares also gained in early trade. The Philippines was the top performer in the region with gains led by financials and industrials. GT Capital Holdings Inc jumped 4.1 percent to a more-than-three-week high, while BDO Unibank Inc closed 1.6 percent higher.
Conglomerate Aboitiz Equity Ventures Inc was the biggest contributor to the index, notching up its best intraday percentage gain in seven weeks to end up 4.03 percent. Singapore extended gains, aided by financials and telecom stocks. Singapore Telecommunications Ltd ended up 1.07 percent. Its unit announced a $40 million contract extension with specialist security provider Suretek on Tuesday.
Lender DBS Group Holdings Ltd ended up for a sixth session, hitting its highest in more than 15 months. Indonesian shares ended slightly lower. Declines in telecom and consumer staples offset gains in financials, with Telekomunikasi Indonesia weighing the most on the index. Unilever Indonesia Tbk PT and cigarette maker Gudang Garam Tbk PT also dragged the index, while Perusahaan Gas Negara eased on lower oil prices. Thailand recovered from early oil price-led losses to end higher, with gains in financials and telecoms more than making up for the dip in energy stocks. Siam Commercial Bank PCL and Kasikornbank PCL added more than 1 percent each.
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