Most Asian stock markets to see post-holiday rise
Most Asian stock markets to see post-holiday rise
HONG KONG (Reuter): Most Asian stock markets should see a
flurry of activity next week as investors and fund managers
return from the Chinese New Year and Moslem Idul Fitri holidays,
brokers said.
In Tokyo, despite the seventh consecutive decline in the 225-
share Nikkei average on Friday, rises in high-technology shares
and some individual issues showed market strength, analysts said.
"Rebounds in some individual speculative shares such as Daido
Steel Sheet and semiconductor-related issues following rises in
high-tech shares in New York are harbingers of a recovery in the
market," said Harushige Kobayashi, deputy general manager at
Yamaichi Securities.
In Hong Kong, shares are expected to run into increased
volatility, as February index futures expire on Wednesday,
players said.
"The market is bound to be swayed by futures gyrations, and
HSBC and Hang Seng Bank's results reports on Monday will also
affect trade as they are expected to set the tone for the rest of
the reporting season," said Antony Mak, an associate sales
director at Vickers Ballas.
"Wall Street's volatility is another important factor to watch
for."
In Jakarta, share prices are likely to move upwards on Monday
after the week-long Idul Fitri holiday, brokers said.
"The market could continue its uptrend after the holidays on
possible further in-flow of foreign funds," one broker said.
He said many sectors, including property, were traded at
relatively low historical levels while index-linked buying may
continue to keep market sentiment upbeat.
But many analysts were cautious ahead of the release of a
series of full-year results.
In Bangkok, the Stock Exchange of Thailand index is expected
to be relatively inactive as the market will be open for only
three days and foreign investors are expected to stay away,
brokers said.
The market will be closed on Thursday and Friday during the
summit of East Asian and European Union leaders.
"Poor market sentiment is expected to continue into next week
and many investors will be away for the long weekend," said
Songyos Kulvichien of First Asia Securities.
In Kuala Lumpur, the Malaysian stock market is expected to
resume its uptrend when it reopens on Monday after a week-long
holiday for Chinese New Year and the Moslem Idul Fitri, analysts
said.
The Kuala Lumpur Stock Exchange Composite Index ended the week
of Feb. 12-16 at 1,090.05 points.
Analysts said the market could resume its upward march as
investment from overseas investors was still pouring in.
"The upward movement is intact," said one institutional
dealer.
In Singapore, shares are likely to be firm on fund buying and
retail bargain-hunting, brokers said.
"We expect many fund managers and retailers to return from
their holidays next week," a dealing director at a local
securities house said. "I expect participation in all sectors."
The key Straits Times Industrials index rose on Friday by
11.18 points to 2,465.99, up from 2,453.88 the week before.
In Manila, shares are expected to climb, with the index seen
testing the 3,000-point barrier as foreign funds return after the
Chinese New Year holiday, brokers said.
"Foreign funds are expected to pick up construction firms on
their way back due to increasing activity in infrastructure
development in the country," said Ivy Cayayan at Philippine Asia
Equities.
In Seoul, stocks are not expected to change significantly
without an influx of fresh liquidity and favorable market
impetus, brokers said.
"With no specifically performing stocks, the market is
expected to crawl sideways next week with the index hovering
around 860-880," said Kwon Oh-seung of Samsung Securities.
Brokers said worries over the nation's economic growth would
cause investors to shy away from manufacturing blue chips.
Instead, investors would show selective buying interest in
smaller capitalization shares, they said.
In Taipei, Taiwan stocks are expected to test the 5,000-point
mark after government attempts to boost sentiment dampened by
recent Taiwan-China tensions, brokers said.
"Communist China will soon conduct a military exercise near
Taiwan, but the worry has been mostly discounted. So unless
something more serious explodes, like a real war, the market
tends to reflect more on the government's bullish attitude," said
Tu Jin-lung of Grand Cathay Securities.
In Shanghai, the Shanghai stock market is closed for the
Chinese New Year holidays until March 4.
In Shenzhen, the stock market is closed for the Chinese New
Year holidays until March 4.
In Sydney, Australian shares are seen holding current levels
in the near term, but profit results due in coming days would
drive the performances of individual companies, brokers said.
"I think these levels will hold as long as the Dow does.
Individual companies, though, will be driven by their results,"
said a Sydney broker.
In Wellington, New Zealand shares closed the week on a
positive note, with the NZSE-40 Capital Index gaining 24.61
points on Friday.
Offshore buying interest and the positive sentiment produced
by the surging Dow saw leading stocks post impressive gains.
Brokers said rising interest rates could put an end to the
rally in equities.
In Bombay, Indian shares moved erratically in the past week
and finished barely steady on insignificant buying by foreign
funds because of holidays, brokers said.
They expect the bourses to revive next week, boosted by
anticipated foreign buying. "We should see a 100-200 point rise,"
said a dealer.
In Dhaka, analysts fear a three-day opposition shutdown from
Saturday may squeeze the Dhaka market's prospects. Brokers said
market sentiment was likely to remain depressed unless the
political situation stabilizes.