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 saw active trading in early hours, with a drop in
U.S. bond yields and the dollar boosting short covering across
"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
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