MOST Southeast Asian stock markets ended the first trading session of 2020 higher today as they cheered signs of an impending Phase 1 Sino-US trade deal, while Philippine and Indonesian shares dragged.
US President Donald Trump said on Tuesday that Phase 1 of trade deal with China would be signed on Jan 15.
News of monetary policy easing by China, the region’s top trade partner, also aided sentiment after the country’s central bank on Wednesday cut the amount of cash that banks must hold as reserves to boost the economy.
Singapore shares hit their highest closing level in over six weeks as the city state’s fourth-quarter GDP data came in line with expectations and firmed hopes for a modest recovery in 2020.
“The economy is slowly getting out of the woods,” said Irvin Seah, an economist at DBS Group Research, adding that “growth momentum is expected to pick up gradually in the coming quarters.”
Thai equities rose as much as 1% in thin volume trade, buoyed by gains in energy stocks after oil prices climbed on Thursday.
Oil and gas giant PTT PCL surged over 3%.
Meanwhile, Philippine shares closed 0.9% lower on their first trading day since Dec. 27, 2019, dragged by utilities and industrials.
The two sectors have been strained since Philippines’ water regulator cancelled the extension of concession deals with the country’s two largest utilities Manila Water Co Inc and Maynilad Water Services after pressure from President Rodrigo Duterte.
Metro Pacific Investments Corp, major shareholder of Maynilad Water Services, slumped as much as 8.1%.
The Indonesian index fell over 0.5%, while trading volumes were lesser than their 30-day moving average. About 3.26 billion shares changed hands, compared to a volume of 5.28 billion on the same day last year.
The flooding and landslides in Jakarta, among the deadliest in years, killed up to 21 people and caused chaos in part of the city, with train lines blocked and power outages in some areas.
“It is a weak market today as floods are still preventing people to come to office, affecting trading. We expect normal trading will resume Monday next week”, said Isnaputra Iskandar, head of research, Indonesia at Maybank Kim Eng.
Consumers was the worst hit sector, with Tifico Fiber Indonesia Tbk PT slumping to its lowest levels in over two months. – Jan 2, 2020 Reuters
