Indonesia Eases Before Election Result ; Thai Telecoms Weak
Bareksa • 22 Jul 2014
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Telkom Indonesia and Bank Mandiri, bringing the broader Jakarta's composite index 0.5 percent lower.
Bareksa.com - Stocks in Indonesia eased on Tuesday as investors took profits from recent gains in large-caps before the presidential election result due later in the day, while Thai shares skidded due to a selloff in telecoms shares.
Indonesian election officials were expected to officially declare Jakarta Governor Joko "Jokowi" Widodo the winner of a hotly contested presidential election in which his rival has alleged mass cheating. Domestic investors led the selling in recent gainers such as
Telkom Indonesia and Bank Mandiri, bringing the broader Jakarta's composite index 0.5 percent lower.
Investors appeared to weigh in the risks of a possible delay in the result, although an announcement on July 22 is highly anticipated.
"Although Jokowi-JK looks to be triumphant based on the real count, we believe that the decision will be referred to the Constitutional Court, with a final verdict expected on August 24," brokerage Danareksa Sekuritas said in a report.
In Bangkok, shares of Advanced Info Service fell for a third day, hitting their lowest since March 12, after the military government last week postponed an auction of fourth generation (4G) mobile phone bandwidth.
Shares of construction firms such as Ch Karnchang and Italian Thai Development rose in active buying as the government's infrastructure plan boosted prospects for the sector, brokers said.
"Investors were more selective and stuck with sectors that will benefit from government spending plans. The market is ripe for profit-taking as it tests 1,550, a key resistance," said Viwat Techapoonphol, senior strategist at broker Tisco Securities.
The region saw a mixed performance, with large-caps in Singapore and Malaysia seeing a boost in the reporting season, with shares of DBS Group Holdings and Tenaga Nasional among the actively traded.
In Manila, shares of Alliance Global Group extended losses for a third day to their lowest since February. In Hanoi, shares of dairy products maker Vinamilk retreated, sending the benchmark VN index lower. (Source : Reuters)