SE Asia Stocks-Ratings upgrade drives Jakarta to life-high; Vietnam ends at over 9-yr high

Fri May 19, 2017 | 11:19 AM BST

By Anusha Ravindranath May 19 Indonesian shares vaulted to a record high on Friday, notching their biggest weekly gain since March, after Standard & Poor's (S&P) raised the country's sovereign bond ratings to investment grade, a move long awaited by investors and the government. Rating agency S&P upgraded Indonesia's sovereign credit outlook to 'BBB-' from 'BB+'. The move reflected its assessment of reduced risks to the country's fiscal position, the agency said. "This is a well-deserved upgrade, thanks to its prioritization of fiscal sustainability at the expense of growth in 2016," said Trinh Nguyen, Senior Economist for Natixis, based in Hong Kong. The upgrade would enable Indonesia to access a pool of eligible foreign investors that only invest in at least investment grade (IG)-rated asset, and provide a sentimental boost to equities and the economy, he added. The Indonesian bond market received foreign inflows of $1.7 billion in April, data showed on Wednesday. tmsnrt.rs/29uYjbz The index of Indonesia's 45 most liquid stocks gained as much as 4.2 percent to an all-time high. The Indonesian benchmark ended 2.6 percent higher driven by financials and telecos. Telkom Indonesia jumped 5.1 percent after media reported that its unit Telkomsigma had entered the public cloud business under the Star Cloud brand. bit.ly/2qAc0NE Vietnam stocks ended at their highest in over nine years, logging a fourth week of gains, buoyed by financial and energy shares. Vietnam National Petroleum Group gained nearly 7 percent, driven by higher oil prices. Rating agency Fitch on Thursday revised the outlook on Vietnam's long-term foreign- and local currency issuer default ratings (IDR) to 'positive' from 'stable'. Meanwhile, other Southeast Asian markets largely ended in positive territory as concerns surrounding U.S. politics waned and as traders shifted their focus to local catalysts. Shares in Thailand and the Philippines ended marginally higher. However, the Philippine index posted a second week of losses. Defying the broader trend, Singapore shares fell for a fourth straight session, recording their first weekly loss in three. Industrial stocks and telcos were the worst performers. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS Change on day Market Current Previous Pct Move Close Singapore 3216.92 3221.66 -0.15 Bangkok 1549.64 1545.88 0.24 Manila 7767.62 7757.69 0.13 Jakarta 5791.884 5645.451 2.59 Kuala Lumpur 1768.28 1767.17 0.06 Ho Chi Minh 733.82 726.99 0.94 Change so far this year Market Current End 2016 Pct Move Singapore 3216.92 2880.76 11.67 Bangkok 1549.64 1542.94 0.43 Manila 7767.62 6840.64 13.55 Jakarta 5791.884 5296.711 9.35 Kuala Lumpur 1768.28 1641.73 7.71 Ho Chi Minh 733.82 664.87 10.37 (Reporting by Anusha Ravindranath in Bengaluru; Editing by Sunil Nair)
Source: SE Asia Stocks-Ratings upgrade drives Jakarta to life-high; Vietnam ends at over 9-yr high