SE Asia Stocks-Most rise; Indonesia hits 6-week high on rate cut boost
* BI cuts benchmark rate by 25 bps to 5% * Indonesia rises for 10th straight session * Philippine cenbank cuts RRR by 100 bps By Sameer Manekar Oct 24 (Reuters) - Indonesian stocks rose for the tenth straight session on Thursday to hit a six-week high, following a widely-expected rate cut by the archipelago's central bank, while Singapore gained on hopes of an economic recovery in the city-state. Leading the gains in the Southeast Asian region, Indonesia's benchmark index ended up 1.3%, its best closing level since Sept. 12. The index has added over 300 points since its close on Oct 10. Bank Indonesia cut its benchmark interest, the fourth consecutive cut in as many months, stepping up its efforts to boost Southeast Asia's largest economy. "BI's decision to cut the benchmark rate by 25 basis points is a very strong message to the market that the President Jokowi and the new cabinet has no intention to loosen its grip on the growth agenda," said Taye Shim, head of research at Mirae Asset Sekuritas. Hosting his first cabinet meeting of the new term, Indonesian President Joko Widodo stressed the government's priority would be job creation. Widodo has retained several economic ministers from his first term, including Finance Minister Sri Mulyani Indrawati, whose appointment is seen as continuation of the focus on economic growth. An index of the country's 45 most liquid stocks was up 2%, rising for the tenth straight session as well. Singapore shares added 0.8%, boosted by gains in financial and industrial sectors. The city-state's economy may be a few quarters away from a recovery as the decline in trade and manufacturing this year hasn't really spread to other sectors, the Monetary Authority of Singapore's chief Ravi Menon told Bloomberg. (https://bloom.bg/2Jkrdea) A recovery, though not robust, was still likely as the negative output gap, the estimated difference between economy's actual and potential performance, isn't expected to widen, Menon added. Index heavyweights DBS Group Holdings and Jardine Matheson Holdings advanced 1.2% and 1.5%, respectively. Thai stocks closed down 0.6%, dragged by heavy losses in the financial sector. Heavyweight Kasikornbank PCL declined 7.4%, as the bank forecast its gross non-performing loans (NPL) ratio to be in the range of 3.6%-4% in 2020, wider than 2019's NPL gross ratio of 3.34%. "I think people are closely monitoring the NPL issue. And when one of the biggest bank continue to signal that NPL target wil rise next year, I think it’s quite a big deal for the market," said Rakpong Chaisuparakul, analyst at KGI Securities Thailand. The Philippine bourse added 0.2%, rising on the back of financials and consumer firms. Philippine central bank Governor Benjamin Diokno after market hours announced a 100-bps cut in banks' reserve requirement ratio that will take effect in December. BDO Unibank and SM Investment Corp rose 1.7% and 1.6%, respectively. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS Change on the day Market Current Previous close Pct Move Singapore 3168.87 3144.28 0.78 Bangkok 1620.97 1631.46 -0.64 Manila 7950.98 7933.76 0.22 Jakarta 6339.647 6257.806 1.31 Kuala Lumpur 1571.11 1568.79 0.15 Ho Chi Minh 993.6 987.79 0.59 Change so far in 2019 Market Current End 2018 Pct Move Singapore 3168.87 3068.76 3.26 Bangkok 1620.97 1563.88 3.65 Manila 7950.98 7,466.02 6.50 Jakarta 6339.647 6,194.50 2.34 Kuala Lumpur 1571.11 1690.58 -7.07 Ho Chi Minh 993.6 892.54 11.32 (Reporting by Sameer Manekar in Bengaluru; Editing by Rashmi Aich)
