SE Asia Stocks-Indonesia, Philippine, Thailand jump after Fed keeps stimulus

September 19, 2013

BANGKOK, Sept 19 (Reuters) - Southeast Asian stocks rallied

on Thursday, with Indonesian benchmark jumping to its highest

level in more than 11 weeks, joining broader Asia, buoyed by the

U.S. Federal Reserve's decision to keep monetary stimulus.

Jakarta's Composite Index was up 4.1 percent, rising

as much as 7.4 percent at one point, on the back of gains in

banking shares such as Bank Mandiri and Bank Rakyat

Indonesia.

Indonesia saw active trading in early hours, with a drop in

U.S. bond yields and the dollar boosting short covering across

exchanges.

"Some short covering made the early fantastic rally. People

who were short selling the market expecting QE tapering were

buying back shares," said Jemmy Paul, head of equity at

Sucorinvest Asset Management in Jakarta.

The Philippine index climbed as much as 4 percent to

its highest mark in five weeks amid strong buying interest in

index heavyweight such as Ayala Land Inc and SM

Investments Corp.

Trading volume on Philippine bourse significantly

outperformed the rest of the region that was 3.3 times a full

day average over the past 30 sessions.

Thai SET index gained 3.5 percent at one point,

hovering near a psychological 1,500 level as players covered

short positions in large cap banks such as Siam Commercial Bank

Pcl and top mobile phone firm Advanced Info Service Pcl

.

Trading was also heavy in shares in construction firm

including Italian Thai Development Pcl ahead of the

government's debate on 2 trillion baht infrastructure loan bill

due later in the day and parliamentary vote on Sept 20-21.

In a report, strategists at broker Phillip Securities said

the parliamentary readings of the borrowing bill could spark a

wave of speculative buying and the SET index could hit 1,500

level later in the day.

Some traders said higher prices could induce profit taking.

"A further Thai market rally may be limited given the SET

index had already made a good rebound from the low in August as

hopes about the Fed stimulus have priced in," said CIMB

strategist Kiatkong Decho in Bangkok.

In Singapore, players built up positions in large caps

including top telecom firm Singapore Telecommunication

, sending the Straits Times Index to its

highest in almost seven weeks in early hours.

Malaysia's main index climbed more than 1 percent to

five-week highs with buying most active in banking share CIMB

Group Holdings and Malayan Banking.

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SOUTHEAST ASIAN STOCK MARKETS

Change at 0435 GMT

Market Current Prev Close Pct Move

TR SE Asia Index* 425.63 408.83 +4.11

Singapore 3246.77 3193.85 +1.66

Kuala Lumpur 1790.40 1771.40 +1.07

Bangkok 1485.62 1439.13 +3.23

Jakarta 4661.29 4463.25 +4.44

Manila 6534.32 6333.96 +3.16

Ho Chi Minh 477.63 474.26 +0.71

(Reporting by Viparat Jantraprap and Wilawan Pongpitak in

Bangkok; Andjarsari Paramaditha in Jakarta; Editing by Anand

Basu)