Asian stock prices seen to remain mixed this week
Asian stock prices seen to remain mixed this week
HONG KONG (Reuter): Asian shares are expected to remain mixed
in the coming week, with Bangkok's bourse on tenterhooks waiting
for economic policy direction from a new finance minister while
Hong Kong grapples with China's move to control red chips.
Friday's unexpected announcement of controls on Chinese
companies listed overseas, such as the red chips in Hong Kong,
could well take some of the steam out of the market.
But some analysts said sentiment underlying the rally that
pushed the Hang Seng up 647.87 points, or 4.47 percent, on Friday
to an all-time high of 15,154.36 remained on solid ground.
The rest of the region appeared mixed, with Kuala Lumpur
slated for further speculative activity while Jakarta and Manila
shares are expected to trade steadily.
In Tokyo, stocks are likely to drift in the coming week as
investors wait for reassurance that currency market turmoil has
stopped and for the Bank of Japan's survey of corporate
sentiment.
Brokers said the Nikkei average was having trouble keeping its
gains after setting a new closing high of 20.681.07 for calendar
1997 on June 16.
The Nikkei 225 index closed 142.81 points, or 0.69 percent,
weaker on Friday at 20,385.54.
In Bangkok, battered Thai stocks are expected to extend losses
in the coming week with investors hugging the sidelines waiting
for signs of policy changes following the appointment of a new
finance minister, brokers said.
The SET Index fell 6.86 percent over the week to close at
480.25 despite gaining 3.33 percent on Friday on a technical
rebound helped by the appointment of new Finance Minister Thanong
Bidaya.
In Singapore, dealers in Singapore said the market was nearing
the end of its consolidation period and looked vulnerable to more
downside.
The STI index ended 5.47 points up at 2,008.44 on Friday,
against 1,990.12 on June 13.
In Seoul, stocks are expected to slide in the week ahead as
investors believe the market is still over-bought, brokers said.
The composite stock index ended at 760.40 on Saturday, down
31.57 points, or 3.99 percent from 791.97 the previous Saturday.
In Kuala Lumpur, shares are expected to rise in the coming
week with blue chips remaining tightly traded on lack of news
while speculative plays on small-capitalised issues continue,
analysts said.
For the week, the Composite Index of 100 large-capitalised
stocks closed 19.16 points, or 1.78 percent, higher from Friday a
week earlier. The index ended at 1,097.54, up 0.06 of a point
from Thursday's close.
In Manila, shares are seen trading in a limited range in the
week ahead with selective positioning in issues that are expected
to post better first-half earnings, traders said.
On Friday, the main index ended 24.24 points lower at
2,881.73. But week-on-week, the index gained 80.12 points from
the previous 2,801.61.
In Sydney, shares are expected to maintain their record levels
after a wave of confidence from overseas investors in the
resource and banking sectors carried local stocks to both a life-
time high and a record close on Friday.
The All Ordinaries Index ended 19.3 points higher at 2,712.6
after hitting 2,714.2 in trade of over A$1 billion of shares.
In Wellington, New Zealand share market closed stronger on
Friday, boosted by a strong performance in the forestry and paper
sectors.
The NZSE40 Capital Index added 57 points, or 2.4 percent, on
the week and at 2423.60 was only about 20 points off its year-
high.