Editor Picks - south east asia
Philipine 3 year Bond is The Best Choice
"Two- and three-year bonds would be a safe choice in case the central bank no longer cuts rates and the market remains apprehensive on supply,â€ Singapore-based Belhimeur said in an interview. "Treasury bill rates are too low now and won't drop any further if the central bank doesn't cut."
Vietnam to Promote Ways of Investment
Red river Delta is going to be a subject of conference in August 5.More than 500 investors and representatives from big domestic corporations, industries and international financial institutions are expected to attend the event, said Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc.
Philippines to raise $750 million Bonds
The 10.5-year bonds, (they mature on January 20, 2020, in order to stagger the government's repayment obligations) were at 100.25 by the close of Asian trading yesterday after being re-offered at 99.065. The bonds were priced with a coupon of 6.5%, which at the re-offer price gives a yield of 6.625%. This corresponded to the tight end of the initial yield guidance of 6.625% to 6.75% that was set by the three bookrunners early on during marketing. The guidance was firmed up in the early evening Hong Kong time, when investors got the message that the final yield would be fixed at 6.625%.
Thailand Kept Interest Rate Unchanged
Thailand's consumer confidence rose for the first time in five months in June after the seven-month-old government said it would spend more than 1.4 trillion baht by the end of 2012. Policy makers in the Southeast Asian nation have begun saying the economy may be past the worst after declines in exports and manufacturing stabilized. Policy makers "assessed that the growth of the Thai economy would improve going forward provided that the global economic recovery sustained and the fiscal impetus started to intensify," the central bank said. The current monetary policy is "accommodative and would be supportive of an economic recovery in a subdued inflation environment."
Philippines' Gov May Offer $750 Million Bonds
Developing-nation dollar bonds have rallied this year, pushing the extra yield investors demand to own the debt over U.S. Treasuries to 4.50 percentage points from 6.90 points at the start of the year, according to JPMorgan Chase & Co.'s EMBI+ Index. The spread over Treasuries has widened from as low as 4.07 points on June 10, indicating that investors' appetite for risks is waning. "The fiscal situation in the region as a whole is more of a concern now," said Vishnu Varathan, a regional economist at Forecast Singapore Pte. "India highlighted the situation. Economies in the region have a huge impetus to raise funds."
Inflation in Philippines Plunged in June
Inflation in the Philippines fell to 1.5 percent in June, from 3.3 percent in May.
Indonesian Bonds Offers the Highest Yield
Indonesia's local-currency bonds have handed investors a 10 percent gain this year, the best performance among 10 local- currency Asian debt indexes compiled by HSBC Holdings Plc. Investors snapped up the debt as a 9 percent rally in the rupiah since Jan. 1 and $5.5 billion in standby loans from multilateral lenders boosted confidence in the nation's finances. Moody's Investors Service on June 11 raised Indonesia's credit rating outlook to "positive," which may lead to an increase in credit rating in the next 18 months. Moody's rates Indonesia Ba3, the third highest non-investment-grade rating.
ICBC Bank May Buy Stake in ACL Bank Pcl From Bangkok Bank
The Thai government may approve ICBC's bid to buy its shares in ACL, the Kao Hoon newspaper reported May 20, citing Finance Minister Korn Chatikavanij. Korn said he will support the deal if the takeover benefits the Thai bank, according to the report.
Malaysia's construction Stocks Are Ready to Grow
Malaysian construction stocks including Gamuda Bhd., IJM Corp. and WCT Bhd. are set to benefit from several "fat years" as the government accelerates a slew of development projects, Maybank Investment Bank Bhd. said.
Thai Exports Plunge but Improvement is Predicted
Thailand's exports for the month of May dropped dramatically since 1992 due to lack of demand for products. Shipments declined 26.6 percent from the prior year, according to the Commerce Ministry's Permanent Secretary Siripol Yodmuangcharoen.
Hot Emergent Market: Indonesia
Southeast Asia's largest economy may grow 60 percent in the next five years to $800 billion due to a stable administration, lower capital costs and a government plan to spend as much as $34 billion to build roads, ports and power plants by 2017, Morgan Stanley said. Leaders of the nations known as BRIC will meet this week in the Russian city of Yekaterinburg.
Rupiah and Korean Won rose this week, leading Asian currencies
The rupiah extended this quarter's gain, the best performance in Asia. The MSCI Asia Pacific Index of stocks climbed for a fourth day as Australia's economy unexpectedly expanded in the first quarter. The Philippine peso strengthened on speculation falling borrowing costs will help revive economic growth.