Each week, we provide an overview of the percent returns of the primary indices in Southeast Asia and their currency appreciation or depreciation relative to the US Dollar. We provide this information below. We also capture this information, as well as the trailing four and twelve week movements, and plot the data in charts, which you can find on the “index charts” and “currency charts” pages.
Indices
During the week of 7 August, only two of the nine indices in Southeast Asia advanced, with the Cambodia Securities Exchange index rising 0.51% and the Lao Securities Exchange index gaining 0.16%. The remaining seven indices declined over the week, with many correlated closely with the movements of global indices. The Vietnam All index had the greatest decline, falling 2.30% and giving back some of its advances from the previous two weeks.
On Thursday, Vietnam launched its derivatives market, making it the fifth country in Southeast Asia to offer these products, behind Singapore, Malaysia, Indonesia, and Thailand, according to The Hanoi Stock Exchange.
Weekly gains
- Cambodia Securities Exchange index (CSX), 0.51%
- Lao Securities Exchange index (LSX), 0.16%
Weekly declines
- Philippine Stock Exchange index (PSEi), -0.06%
- Jakarta Stock Exchange index (JSX), -0.20%
- Kuala Lumpur Composite Index (KLCI), -0.43%
- Stock Exchange of Thailand index (SET), -1.07%
- Singapore’s Straits Times Index (STI), -1.41%
- Myanmar’s Myanpix index (YSX), -2.07%
- Vietnam All index (FTFVAS), -2.30%
Currencies
Four of the nine primary Southeast Asian currencies advanced relative to the US Dollar the week of 7 August, with the Thai Baht having the greatest appreciation, rising 0.25% and bringing its trailing four week gain to 1.69%; this is more than double the appreciation of the next closest currency—the Singapore Dollar—which has gained 0.74% over the same period. The Thai Finance Minister stated the strength of the Baht would be “short lived” and would not threaten Thailand’s exports in the second half of 2017, according to an article in the Bangkok Post from 8 August.
The Philippine Peso had the largest depreciation, falling 1.36% and bringing its trailing four week decline to 0.75%, which is the greatest decline of the nine currencies over this period. The country’s expected infrastructure spending and its interest rate policy that is independent of the US Federal Reserve (Fed)—on Thursday, the Philippine central bank held interest rates constant and reiterated its stance that the bank would not base future rate hikes on Fed policies, according to Business World—probably are contributing to the decline in the currency.
On Wednesday, Malaysia’s Bank Negara, the country’s central bank, upbraided The Singapore Exchange and Intercontinental Exchange for offering futures contracts on the Malaysian Ringgit. The Ringgit is a non-internationalized currency and, thus, any offshore trading of the currency—whether as a non-deliverable forward, or futures, options, or other derivative contract—violates Kuala Lumpur’s policies, according to The Star Online.
Weekly appreciations
- Thai Baht (THB), 0.25%
- Myanmar Kyat (MMK), 0.15%
- Lao Kip (LAK), 0.08%
- Vietnamese Dong (VND), 0.03%
Weekly depreciation
- Singapore Dollar (SGD), -0.09%
- Indonesian Rupiah (IDR), -0.26%
- Malaysian Ringgit (MYR), -0.38%
- Cambodian Riel (KHR), -0.49%
- Philippine Peso (PHP), -1.36%
