Southeast Asian stocks: Philippines, Indonesia jump

05 Jan, 2019

Most Southeast Asian stock markets ended higher on Friday, with Philippines gaining on positive inflation data, while Indonesia's energy stocks propelled its index to an 8-month high on better-than-expected 2018 coal production.
Philippines index posted a weekly gain of nearly 4 percent, its best weekly performance in nearly 2 years, while also closing at an 3-month high.
Stocks surged as data showed inflation cooled more than expected in December as food and transport costs rose at a slower pace, reinforcing views that the central bank is done raising interest rates and giving it room to lower borrowing costs if needed.
Singapore's benchmark snapped two sessions of steep losses to rise 1.5 percent, as a bout of bargain buying by traders propelled the index gain most in the region.
"In the last six months, stocks have priced in all the weaker data and valuations have turned cheap," said Joel Ng, an analyst at KGI Securities in Singapore. "In terms of short term trading there appear to be some opportunities."
Singapore's index has lost nearly 7 percent over the last six months and about 2 percent over the previous two sessions.
Indonesian stocks surged in fag end of trade after Indonesia's energy ministry reported a jump in 2018 coal production which surpassed the ministry's target, while biodiesel production nearly doubled.
Energy stocks largely propelled the index to its highest close in about 8 months, with coal miner Adaro Energy Tbk jumping 13 percent while oil and gas explorer Medco Energi Internasional Tbk firming 3.4 percent.
Coal miner Golden Eagle Energy Tbk's stock was the top percentage gainer on the index, surging 35 percent.
Also finding a boon in energy stocks was Thailand's index which advanced as index heavyweights PTT PCL and PTT Exploration and Production PCL jumped 2.8 percent and nearly 5 percent, respectively.
Energy stocks gained in tandem with oil prices which rose more than 1 percent after news about US- China talks and OPEC-led supply cuts provided support for the commodity.
Vietnam's benchmark recovered from a staggering 13-month low in the session to close 0.3 percent higher. However, the index recorded a 4-week losing streak.
Bucking the trend, Malaysia's index edged lower. Sentiment remained gloomy after government data showed that the country's trade surplus fell sharply in November.

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