Regional shares flounder amid lack of incentives

Regional shares flounder amid lack of incentives

HONG KONG (AFP): Regional shares markets floundered yesterday
on a lack of fresh incentives and further falls in regional
currencies.

All markets, except Tokyo and Auckland, recorded losses, while
financial markets in Seoul and Taipei were closed for holidays.
The Jakarta Stock Exchange index led the pack, losing 2.9
percent, and the Kuala Lumpur Stock Exchange composite index fell
2.0 percent on lingering uncertainty despite government moves to
boost confidence.

Hong Kong share prices dropped 1.5 percent ahead of a
Wednesday holiday.

"There is some selling pressures since there is no new
incentive," ahead of a public holiday on Wednesday, said Ricky
Tam, research director at Delta Asia Securities.

The Stock Exchange of Hong Kong's key Hang Seng Index lost
219.46 points to close at 14,411.19.

In Tokyo, Japanese share prices closed marginally higher,
aided by modest buying of selected blue chips amid a wait-and-see
mood ahead of a Group of Seven (G-7) meeting in Hong Kong,
brokers said.

The Nikkei stock average of 225 selected issues on the Tokyo
Stock Exchange edged up 8.70 points to end the session at
17,974.50, while the broader Topix index of all first section
issues was down 2.40 points at 1,394. 24.

In Kuala Lumpur, Malaysia's key stock index closed 2.0 percent
lower on continued profit-taking and forced selling in the
absence of fresh leads.

"The tremendous run-up last week is having its impact now.
Tomorrow will continue to see the market trying to absorb
whatever that is left over," said an analyst at a local
brokerage.

The Kuala Lumpur Stock Exchange 100-share weighted composite
index fell 16. 98 points to 827.08. The lesser second board index
eased 12.36 points, or 2.8 percent, to 429.48 points.

In Singapore, blue-chip stock index closed 0.6 percent lower
on sluggish trade, dealers said.

"Investors are cautious on the back of regional economic
uncertainties," a dealer said.

The Straits Times Industrial index of leading shares on the
Stock Exchange of Singapore closed 11.50 points lower at
1,920.60. The broader All-Singapore index shed 1.87 points at
464.13.

In Sydney, the Australian Stock Exchange's key barometer, the
all ordinaries index, closed down 11.1 points at 2,651.8.
The all resources index closed 14.1 points lower at 1,326.8 while
the all industrials index was down 8.8 points at 4,339.1.

In Bangkok, Thai shares closed 1.7 percent lower on thin
volume as players stayed away from the market as they waited for
the country's political turmoil to settle, analysts said.

"Investors are just not interested in going into the market
right now, things are very uncertain politically and they feel
the risk is too much," an analyst at a local brokerage said.

The Stock Exchange of Thailand (SET) index ended 9.15 points
lower at 527. 21.

In Manila, Philippine share prices fell 0.6 percent in the
absence of news to lift the market amid lingering political and
economic uncertainty.

"The big market players are sidelined. I don't think anybody
noticed the July trade deficit report of the NSO (National
Statistics Office)," said analyst Ricky Lozari of Belson Prime
East Securities Inc.

The Philippine Stock Exchange index fell 13.45 points to
2,109.55.

In Shanghai, Shanghai's B shares, nominally reserved for
foreign investors, fell 1.2 percent as investors stayed on the
sidelines, analysts said.

The Shanghai Stock Exchange's B share index fell 1.01 points
to close at 81.92 points. The A share index of domestically-
traded shares rose 9.01 points, or 0.7 percent, to close at
1,238.66 points.

In Auckland, share prices on the New Zealand Stock Exchange
bounded ahead to close 1.2 percent higher ahead of an expected
announcement by the Reserve Bank.

The NZSE-40 index jumped 30.58 points to 2,526.52 on turnover
around 80 million New Zealand dollars (US$50 million).

In London, shares here fell on Tuesday morning, in the wake of
overnight losses on Wall Street, dealers said.
The FT-SE 100 index of leading shares fell by 25.8 points to
4,877.1 points.

In Paris, the CAC-40 index also opened lower at 2,885.22, to
show a loss of 13.40 points, while in Frankfurt, the DAX-30
opened 20.25 points higher at 3,840.38 points.

London dealers said that market sentiment had been dented by
closing losses on Wall Street.

They added that a smaller-than-expected public sector
borrowing requirement for the month of August failed to inspire
fresh confidence on the market.

Trading was light ahead of the publication of US consumer
price and industrial output figures later on Tuesday.