Most South-east Asia stocks rebound on share buyback, bargain hunting

Most South-east Asia stocks rebound on share buyback, bargain hunting
Singapore's benchmark share index fell through the key psychological support level of 3,000 after trading opened on Friday (Aug 21).
PHOTO: The Straits Times

BANGKOK - Most Southeast Asian stock markets rebounded on Tuesday, helped by bargain hunting and share buyback plans of some companies, with Indonesian benchmark recovering from over 1-1/2-year low on Monday, but concerns over China's economy limited further gains.

The Jakarta composite index rose nearly 2 percent, regaining some of the 4 percent fall to the lowest close since December 2013 on the previous day.

State-controlled firms such as Telekomunikasi Indonesia and Bank Mandiri led the rebound after a cabinet minister said state-owned enterprises are repurchasing their shares from Tuesday.

The Thai SET index was up 0.4 percent, after a volatile trading. Some large-caps and energy shares such as PTT Exploration and Production fell amid further routs in U.S. stocks and drop in oil prices overnight.

Shares of PTT Global Chemical jumped 6 percent following a share buyback plan, a day after its stock hit an all-time closing low.

Broker Maybank Kim Eng Securities expected more listed firms to buy back shares as prices are now undervalued.

"Although stocks tied to the global economy and energy/petrochemical stocks will still underperform the market, their share prices are now trading below -1SD (standard deviation)," the broker's strategists wrote in a report.

Singapore's Straight Times Index climbed 1.8 percent, with shares in top three lenders, including DBS Group Holdings, rising after sharp falls the day before.

"We expect some technical rebound today but this will still be in the nature of more cautious nibbling," said broker NRA Capital in a report.

Indexes of Malaysia and Vietnam both rebounded from an early slide to new multi-year lows. The Philippines' benchmark stock index was a tad 0.09 percent lower after touching a 16-month low in early trading.

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