Thai stocks extend gains, Indonesia jumps nearly 2%

Thai stocks extend gains, Indonesia jumps nearly 2%

Most Southeast Asian stock markets, including the Stock Exchange of Thailand, rose in line with broader Asia on Monday as investors cheered planned Sino-US trade talks.

The SET index ends above 1,700 after gaining 11.38 points or 0.67% on Monday. (Photo from set.or.th)

China and the United States are set to hold lower-level trade talks this month, offering hope that they might resolve an escalating tariff war that threatens to engulf all trade between the world's top two economies.

"Even if nothing conclusive may be achieved this week, there could be an implicit promise of a ceasefire with no escalation in the interim," Mizuho Bank said in a note.

MSCI's broadest index of Asia-Pacific shares outside Japan was up nearly 1%.

The SET index gained 11.38 points or 0.67% to end the day at 1,701.42, in turnover worth 44.92 billion baht.

The index closed higher for a third straight session, helped by gains across the board.

Earlier in the day, data showed the economy expanded at a slower pace in April-June and tourism decelerated, but the National Economic and Social Development Board kept its 2018 growth forecast of 4.2% to 4.7% and raised its projection for export gains.

Oil and gas producer PTT Plc rose 1.5%, while hospital operator Bangkok Dusit Medical Services Plc ended nearly 4% higher.

Indonesian stocks started the week on a strong note after a long weekend and closed nearly 2% higher. Financial markets in Indonesia were closed on Friday for a national holiday.

Lender Bank Central Asia led the gains with a rise of more than 2%, while automotive conglomerate Astra International was up over 4%.

An index of the country's 45 most liquid stocks was up 2.3%.

"Most of the negatives have been already baked into the cake. What the market needed was some kind of a relief," said Taye Shim, head of research at Mirae Asset Sekuritas, adding that it came in the form of trade talks.

Meanwhile, Philippines shares fell a second session in three as industrial and financial stocks weighed on the benchmark index.

Index heavyweights Ayala Corp and JG Summit Holdings declined over 4% each.

Foreign investors sold equities worth a net US$12.55 million on Monday, according to Thomson Reuters Eikon data. In the last week, they sold shares worth a net $88.5 million, said Manny Cruz, an analyst with Asiasec Equities Inc.

A rise in inflation and weakening of the peso against the US dollar are driving the market, Manny added.

Do you like the content of this article?
COMMENT