Southeast Asian markets notched up marginal gains in subdued trade on Friday as the European Central Bank's decision to extend its debt-buying programme did little to boost investor sentiment. The ECB trimmed back its asset buys in a surprise move on Thursday but promised protracted stimulus to aid a still fragile recovery, and dismissed any talk of tapering the programme away.
"Investors' focus will now turn to next week's FOMC meeting," Taye Shim, head of research at Daewoo Securities Indonesia, said in a note. The US Federal Reserve is expected to raise interest rates at its policy meeting next week. However, the possibility of a rate hike week has been almost fully priced in by the market, and the focus is now on whether the central bank hints of further monetary tightening in 2017. Philippine shares inched up slightly to end 0.3 percent higher, supported by financial and industrial stocks. The index was up 2.3 percent for the week. Security Bank Corp rose 3.8 percent and Metropolitan Bank and Trust Co gained 2.7 percent.
San Miguel Corp ended 4.3 percent higher. Thailand shares gave up early gains to end flat, but closed 1.6 percent higher for the week. Earlier in the session, the index had touched its highest in over three months. Energy shares gained the most as oil prices held on to gains on growing hopes that non-Opec producers might agree to cut output following a cartel agreement to limit production. Thailand is the second largest net importer of oil in Southeast Asia. PTT Pcl rose 1.9 percent while PTT Exploration and Production Pcl was up more than 1 percent. Vietnam shares closed 0.6 percent higher, with newly listed Saigon Beer Alcohol Beverage Corp among the top gainers, rising nearly 7 percent. The index slipped 0.3 percent this week.
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