SE Asia Stocks-Indonesian shares at 6-week high ahead of c.bank meeting; Singapore up

Credit: REUTERS/PILAR OLIVARES

Indonesian stocks hit a six-week high on Thursday ahead of the central bank's key rate decision, while Singapore shares rose on hopes of a revival in economic growth in the city-state.

By Sameer Manekar

Oct 24 (Reuters) - Indonesian stocks hit a six-week high on Thursday ahead of the central bank's key rate decision, while Singapore shares rose on hopes of a revival in economic growth in the city-state.

Indonesian stocks .JKSE rose as much as 0.8% and were on track for a 10th straight session of gains.

Bank Indonesia (BI) is expected to cut its benchmark rate by 25 basis points later on Thursday, according to a Reuters poll, as the central bank looks to shore up an economy struggling to maintain its growth trajectory.

"BI will probably cut (its) policy rate again given external resilience, waning growth momentum and lacklustre credit growth," Mizuho Bank said in a note to clients.

Financials were the biggest gainers on the index, with Bank Central Asia BBCA.JK advanced 0.7% to a record high, while Bank Mandiri BMRI.JK gained 2.5%.

Singapore's Straits Times index .STI added 0.9%, after posting its biggest decline in two weeks in the previous session.

Monetary Authority of Singapore chief Ravi Menon in an interview to Bloomberg said the city-state may be a few quarters away from a recovery as the current cycle bottoms out toward the end of the year and into next year.

He also added that the MAS had a fair amount of space on the monetary policy front without having to think about quantitative easing.

The central bank had eased its policy for the first time in three years earlier this month after it narrowly dodged recession in the third quarter.

Financials and industrials were the biggest gainers, with heavyweights DBS Group Holdings DBSM.SI and Jardine Matheson Holdings JARD.SI rising 1.3% and 2.8%, respectively.

Thailand's benchmark .SETI traded sideways, but climbed as much as 0.4% to a one-week high in early trade. Markets were closed on Wednesday for a holiday.

Index heavyweight PTT Exploration and Production PCL PTTEP.BK gained 3% and Electricity Generating PCL EGCO.BK added 3.2%.

Philippine stocks .PSI and the Vietnam bourse .VNI were marginally up, while Malaysian shares .KLSE inched lower.

For Asian Companies click;

SOUTHEAST ASIAN STOCK MARKETS AS AT 0436 GMT

Market

Current

Previous close

Pct Move

Singapore

3170.09

3144.28

0.82

Bangkok

1631.03

1631.46

-0.03

Manila

7947.48

7933.76

0.17

Jakarta

6305.233

6257.806

0.76

Kuala Lumpur

1567.2

1568.79

-0.10

Ho Chi Minh

989.78

987.79

0.20

Change so far in 2019

Market

Current

End 2018

Pct Move

Singapore

3170.09

3068.76

3.30

Bangkok

1631.03

1563.88

4.29

Manila

7947.48

7,466.02

6.45

Jakarta

6305.233

6,194.50

1.79

Kuala Lumpur

1567.2

1690.58

-7.30

Ho Chi Minh

989.78

892.54

10.89

(Reporting by Sameer Manekar in Bengaluru Editing by Jacqueline Wong)

((Sameer.Manekar@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More