Southeast Asia stocks gain on oil price rally

Southeast Asia stocks gain on oil price rally

Opec logo is pictured in Agiers, Algeria, where an informal meeting between members of the Organization of the Petroleum Exporting Countries was held. Southeast Asian stock markets rallied on Thursday after Opec agreed to limit production. (Reuters photo)
Opec logo is pictured in Agiers, Algeria, where an informal meeting between members of the Organization of the Petroleum Exporting Countries was held. Southeast Asian stock markets rallied on Thursday after Opec agreed to limit production. (Reuters photo)

Southeast Asian stock markets advanced on Thursday, tracking Asian shares, with Indonesia posting a third straight session of gains, as a rally in oil prices boosted energy stocks across the region.

Oil futures extended gains after rising nearly 6% on Wednesday, as Opec members agreed to limit production to a range of 32.5 million barrels to 33 million barrels per day during talks held on the sidelines of an energy conference.

"It remains to be seen whether such a cut is followed by all members and whether Russia would follow with a cut of its own," Trimegah Securities said in a note. "But it would still serve as a positive sentiment, at least for the short-term."

Indonesian shares ended up 0.12%, after hitting a near two-month high earlier in the day, with United Tractors Tbk PT and Adaro Energy Tbk PT being among the top performers.

Indonesia's central bank is intervening in money markets to provide liquidity after many banking clients withdrew money to pay for tax amnesty fees, the central bank governor Agus Martowardojo said.

Vietnam shares hit an eight-and-a-half-year high, recording its longest winning streak of nine sessions since March 2014. Index heavyweight Petrovietnam Gas Joint Stock Corp rose 4.57% in heavy trading.

Philippine shares led the region, and posted their second straight session of gains, with oil conglomerate Petron Corp climbing 3.9%.

Singapore shares edged up to post a three-week high.

While the benchmark oil and gas index rose nearly 4%, Sembcorp Industries Ltd and Keppel Corp Ltd were the top gainers on the index.

Malaysian shares climbed 0.28% with the country's biggest oil and gas services company SapuraKencana Petroleum pulling up the index, while Thailand  snapped four sessions of losses.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.7%.

Southeast Asian stock markets

 

 

Current

Previous

% change

Indonesia

5,431.95

5,425.33

+0.12

Malaysia

1,669.64

1,664.96

+0.28

Philippines

7,714.86

7,586.96

+1.69

Singapore

2,885.71

2,858.01

+0.97

Vietnam

688.55

686.72

+0.27

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