SE Asia Stocks-Thailand recovers on strong GDP growth; Malaysia extends losses

Thai shares bounced back from the previous session's losses to trade higher on Monday after quarterly GDP data and corporate earnings came broadly in line with market expectations, while other Southeast Asian stock markets were mixed.

Thailand's main stock index was 0.2 percent higher at 0512 GMT, driven by energy & utilities and banking sectors, after the country's economy grew faster than expected in the
first quarter, boosted by stronger government spending and
tourism.

"Stocks are trading at fair value and, therefore, we do not expect a high upside to today's trading," said an analyst with Phillip Securities (Thailand). Siam Cement Pcl rose 1.24 percent, PTT Pcl gained 2.3 percent and Siam Commercial Bank Pcl added 1.2 percent.

Asian stocks eked out modest gains as buoyant Japanese equities helped offset some of the gloom from Chinese data. China's investment, factory output and retail sales all grew
slower than expected in April, adding to doubts about whether the world's second-largest economy is stabilising. Meanwhile, Malaysian stocks extended losses, led by energy and basic materials sectors. 

Oilfield services provider SapuraKencana Petroleum was the biggest loser with a drop of 0.6 percent. Data released on Friday showed Malaysia's economy expanded 4.2 percent in January-March compared with a year earlier, its slowest growth for a quarter since 2009 as exports and domestic demand were weak. Vietnam shares were headed for their first gain in three sessions, with property shares and energy stocks leading the gains, after better-than-expected trade surplus data for April.
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SOUTHEAST ASIAN STOCK MARKETS
STOCK MARKETS
Change on day
Market Current Previous Pct Move
Close
Singapore 2733.97 2734.91 -0.03
Bangkok 1397.95 1394.69 0.23
Manila 7499.44 7436.79 0.84
Jakarta 4733.116 4761.715 -0.60
Kuala Lumpur 1615.9 1628.26 -0.76
Ho Chi Minh 612.73 610.82 0.31
Change on year
Market Current End 2015 Pct Move
Singapore 2733.68 2882.73 -5.17
Bangkok 1398.14 1288.02 8.55
Manila 7499.44 6952.08 7.87
Jakarta 4733.116 4593.008 3.05
Kuala Lumpur 1615.9 1692.51 -4.53
Ho Chi Minh 612.73 579.03 5.82

Malaysia Stock Market May Snap Losing Streak

The Malaysia stock market has finished lower in three straight sessions, sliding almost 20 points or 1.2 percent along the way. The Kuala Lumpur Composite Index settled just shy of the 1,710-point plateau, although the market may see traction on Thursday.

The global forecast for the Asian markets is upbeat, with the markets expected to follow the price of crude oil higher. The European and U.S. markets were higher, and the Asian markets figure to follow that lead.

The KLCI finished slightly lower again on Wednesday following losses from the industrial issues and plantation stocks, while the financial shares were mostly higher.

Among the actives, Maybank, Sime Darby, PPB Group and IOI Corporation all finished lower, while MISC, Hong Leong Bank, RHB Capital, Public Bank, CIMB Group and Genting all ended higher.

The lead from Wall Street is positive as stocks saw considerable volatility on Wednesday, surging mid-day before slipping off the highs by the close.

The Dow edged up 42.67 points or 0.2 percent to 18,096.27, while the NASDAQ rose 7.80 points or 0.2 percent to 4,948.13 and the S&P 500 added 1.60 points or 0.1 percent to 2,102.40.

The market strength was partly due to another substantial rebound by the price of crude oil following speculation regarding another effort to freeze production - as well as a report showing a smaller than expected increase in crude inventories.

Among individual stocks, Yahoo (YHOO) and Intel (INTC) moved higher following solid earnings news, while Coca-Cola (KO) came under pressure after reporting earnings that beat estimates but on weaker than expected volume.

Malaysian palm oil/Vegoils: Market factors to watch

The following factors are likely to influence Malaysian palm oil futures and other vegetable oil markets on Tuesday May 10.
    
FUNDAMENTALS

* Malaysian benchmark palm oil futures rose on Monday, supported by improved demand and forecasts that stockpiles will drop on falling production ahead of a data release from the Malaysian Palm Oil Board (MPOB). 

* U.S. corn futures fell about 2 percent on Monday to the lowest level since mid-April, pressured by broad weakness in commodities and positioning a day ahead of a monthly U.S. Department of Agriculture report, analysts said. 

* Oil prices tumbled on Monday on expectations that U.S. crude inventories would again build to record highs, taking the market's focus off swooning Canadian oil output due to raging wildfires. 

MARKET NEWS

* The yen tumbled against the U.S. dollar on Monday as Japan signaled it was ready to intervene in the currency market, while a sharp drop in oil prices undercut equities.    

Malaysian palm oil/Veg oils: Market factors to watch

The following factors are likely to influence Malaysian palm oil futures and other vegetable oil markets on Friday May 6.
    
FUNDAMENTALS

* Malaysian palm oil futures reversed their losses from earlier trade on Thursday, rising to a one-week high as the ringgit MYR= weakened against the dollar to breach the 4.00 mark in the evening. 

* U.S. corn and soybean futures fell on Thursday, with soy dropping 2 percent, on profit-taking by investment funds looking to lock in gains from recent rallies. 

* Oil prices surged on Thursday after a raging wildfire near Canada's oil sands region curbed output that mainly flows to the United States, before settling off their highs as a rebounding dollar and a huge U.S. stockpile build cut into gains. 

MARKET NEWS

 U.S. stocks ended steady on Thursday as a mixed quarterly earnings season winds down, but Treasury yields fell to two week lows as investors hedged positions ahead of the monthly U.S. government employment report due on Friday.    

Daily Market Update - (EMETALL, KANGER)

Dow Jones: 17,891.16 pts (+117.52pts, +0.66%)
Wall Street rebounded after a sharp weekly decline last week led by banks and Amazon.com jumped for a second day amid better-than-expected earnings. Meanwhile, U.S. March construction spending rose 0.3%

FBM KLCI: 1,672.72 pts (-2.04pts, -0.12%)
Selling activities were noted on the FBM KLCI last Friday, however bargain hunting activities emerged and limited the losses for the day, forming a hammer candle above the 1,660 support level. The key index may rebound higher towards 1,700.

Crude Palm Oil: RM2,593 (-RM8, -0.31%)
After dropping below the psychological level of RM2,600, CPO may continue its correction phase lower towards the RM2,500 level.

WTI Crude Oil: $44.78 (-$1.14, -2.48%)
Crude oil retreated from a 6-month high after Iraq's exports approached a record high in April, adding barrels to a worldwide supply glut. 

Gold: $1,291.55 (-$1.98, -0.15%)
As expected, gold surged towards the $1,300 level for the first time since January 2015 as investors speculated that the central banks from the U.S. to Europe will maintain low interest rates over the near term.