Friday, 31 July 2015 17:49
JAKARTA: Southeast Asian stock markets mostly ended higher on Friday, with Indonesia’s main index having its best day in nearly 16 months despite disappointing earnings from blue-chip companies.
Indonesian stocks closed 1.9 percent higher, their biggest gain since April 1, 2014, but posted a second monthly decline in July.
The index was on a technical rebound on Friday after closing the previous session at its lowest in 16 months amid weak Asian sentiment.
However, the gain is expected to be temporary as there is “no strong enough indication” that corporate earnings will improve in the next few quarters without government support through infrastructure spending, said Norico Gaman, head of research at BNI Securities in Jakarta.
Indonesian conglomerate PT Astra International Tbk rose 1.1 percent, while instant noodle giant PT Indofood Sukses Makmur Tbk gained 3.4 percent. Both companies posted declines in first-half earnings.
The Philippines posted its fourth monthly decline in July, while Malaysia ended the month with its first gain after three months, helped by a 1.4 percent gain on Friday.
Thailand rose 1.6 percent on Friday after it reopened from a holiday, but saw its biggest monthly decline since March.
Singapore was dragged down by Noble Group , which fell 13 percent to its lowest since November 2008 as concerns grew about the outlook for Asia’s biggest commodity trader amid a scrutiny of its accounting practices and pressure on its credit rating.
