BANGKOK, Oct 8 (Reuters) - Indonesian shares gained on
Tuesday due to broad-based buying in large caps ahead of an
interest rate decision by the central bank, while Thai stocks
rebounded from two sessions of losses as investors hunted for
bargains among mid- and small-cap shares.
Jakarta's Composite Index was up 1.1 percent at
midday in moderate trading volume that was around half of its
full-day average over the past 30 sessions. Banking shares were
among those actively traded, led by Bank Rakyat Indonesia
Most analysts expect Bank Indonesia (BI) to keep its
benchmark reference rate at 7.25 percent at a policy rate review
later in the day, partly on the back of subdued inflationary
"The foreign reserve data was supportive and also along with
market expectations that BI will not increase its benchmark rate
today, which should be positive for banking sector," said John
Teja, director of broker Ciptadana Securities in Jakarta.
Indonesian foreign exchange reserves were at $95.68 billion
at end of September, $2.68 billion higher than a month earlier,
supported by a recent global sukuk issuance, the central bank
said on Monday.
The key Thai SET index was up 1.3 percent at midday
amid active speculative buying in shares such as Tipco Foods Pcl
. Investors also bought shares of large caps such as
Kasikornbank Pcl that had led recent market slides.
"Local players were active in the morning session. I think,
broadly, investors expect that the issue about U.S. budget and
debt ceiling will be resolved in time," said strategist Teerawut
Kanniphakul at broker CIMB Securities.
Other Southeast Asian stocks markets were rangebound with
Asian shares reversing early losses as data
showed China's services industry continued to expand, soothing
to some extent nerves jarred by fears of a U.S. debt default as
the U.S. government shutdown entered a second week.
Among the gainers in the region, Singapore's Straits Times
Index edged up 0.4 percent to 3,147, recouping early
losses after Monday's slip to near a three-week
Shares in Singapore-listed mid-cap Blumont Group Ltd
jumped 54 percent after the company named a new
chairman. The stock had tumbled 85 percent after the Singapore
Exchange lifted a trading suspension on Monday.
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SOUTHEAST ASIAN STOCK MARKETS
Change at 0547 GMT
Market Current Prev Close Pct Move
TR SE Asia Index* 409.09 407.14 +0.48
Singapore 3147.61 3136.59 +0.35
Kuala Lumpur 1775.60 1776.82 -0.07
Bangkok 1433.07 1414.62 +1.30
Jakarta 4420.80 4374.96 +1.05
Manila 6434.77 6443.21 -0.13
Ho Chi Minh 499.75 500.47 -0.14