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Indonesia jumps most in 22 months; Malaysia falls further

Indonesia jumps most in 22 months; Malaysia falls further

-A +A (May 24): Indonesian stocks jumped 2.7% on Thursday, the most since August 2016, while Malaysian shares fell for a fourth straight session as a widening probe over c…

Indonesia jumps most in 22 months; Malaysia falls further

-A +A

(May 24): Indonesian stocks jumped 2.7% on Thursday, the most since August 2016, while Malaysian shares fell for a fourth straight session as a widening probe over corruption linked to the previous government and continued capital outflows weighed on investor sentiment.

Financials accounted for most of the gains in Indonesia with Unilever Indonesia rising 3.7% and Bank Central Asia climbing 2.1%.

Movements in financials were valuation-driven, said Nomura Indonesia analyst Elvira Tjandrawinata.

There has been little downgrade in terms of earnings but valuation has come down because of receding share prices, she said.

The financial subindex trades at price to current fiscal year's earnings ratio of 13.47, compared with last one year's average of 14.87.

Reports that the gov ernment plans to disburse a higher Eid holiday bonus are also likely to push the Jakarta stock index higher, Trimegah Securities said in a note.

Malaysian shares fell 1.6% to their lowest close since Dec. 27, dragged by financials.

Malayan Banking Bhd was the biggest drag with a drop of 3.9%.

"The political malaise is weakening MYR (ringgit) and that usually triggers some outflows. But I also believe the local markets are caught up in risk aversion," said Stephen Innes, head of trading APAC at Oanda.

Finance Minister Lim Guan Eng had said earlier this week that the previous government led by Najib Razak deceived the public and parliament over the country's financial situation and 1MDB.

Philippine shares snapped six straight sessions of fall to close 1.2% higher, while Singapore stocks rose nearly 1%.

Lenders Oversea-Chinese Banking Corp and DBS Group Holdings were the top boost in Singapore, rising 1.6% and 0.8%, respectively.

Thai shares declined 1.2%, dragged by energy stocks. PTT PCL ended 5.1% lower and PTT Exploration and Production fell 3.1% with crude oil prices declining on the prospect of the first increase in OPEC output since 2016.

SOUTHEAST ASIAN STOCK MARKETS
Change on the day

Market Current Previous close % move
Singapore 3528.92 3496.27 0.93
Bangkok 1732.51 1753.6 -1.20
Manila 7652.53 7560.47 1.22
Jakarta 5946.538 5792.001 2.67
Kuala Lumpur 1775.66 1804.25 -1.58
Ho Chi Minh 985.92 988.94 -0.31

Change on year

Market Current End 2017 % move
Singapore 3528.92 3402.92 3.70
Bangkok 1732.51 1753.71 -1.21
Manila 7652.53 8558.42 -10.58
Jakarta 5946.538 6355.654 -6.44
Kuala Lumpur 1775.66 1796.81 -1.18
Ho Chi Minh 985.92 984.24 0.17
Source: Google News | Berita 24 English

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