Malaysia snaps nine-session losing run, other SE Asian shares subdued
KUALA LUMPUR, June 22 — Southeast Asian stock markets were subdued today as investors assessed the likely fallout of US-China trade tensions on corporate results, while Malaysia snapped nine sessions of losses led by gains in financial and energy stocks.
Sentiment in the region took a hit after German carmaker Daimler late on Wednesday cut its 2018 profit forecast, taking investors by surprise.
“Markets might have been underestimating the potential impact of global trade tensions”, said Taye Shim, head of research at Jakarta-based Mirae Asset Sekuritas.
Lenders gained after Malaysia’s newly appointed central bank governor, Datuk Nor Shamsiah Mohd Yunus, said she will focus on financial stability.
The country’s benchmark index snapped nine sessions of decline and ended marginally higher, with oil stocks contributing to the gains ahead of an Opec meeting. The index is however down 3.8 per cent during the week, its biggest drop since Aug 2015.
“I think today’s market movement is driven by the Opec development. Given the fragile market sentiment, any positive development should act as a temporary relief for markets,” said Taye Shim, head of research at Jakarta-based Mirae Asset Sekuritas.
Opec moved closer towards boosting oil output as Saudi Arabia and non-Opec Russia said a production increase of about 1 million barrels per day had become a near-consensus proposal, after major consumers warned of a supply shortage.
“We would remain cautious on the sustainability of the rebound,” Shim added.
Philippine shares fell for a seventh straight session and were down 6.2 per cent for the week, their biggest weekly fall in five years.
Bank of the Philippine Islands and Aboitiz Equity Ventures Inc fell nearly 3 per cent each.
Indonesian shares extended losses to a fourth session ahead of May trade data expected on Monday and were down nearly 3 per cent on week, their first weekly drop in four.
Source: The Malay Mail Online