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 year-to-date movements, and plot the data in charts, which you can find on the “index charts” and “currency charts” pages.
During the week of 15 January, nine of the ten indices in Southeast Asia advanced, with the Jakarta Stock Exchange index leading all indices with a gain of 1.90%. The Lao Securities Exchange index had the greatest decline during the week, falling 0.73%.
In the Philippines, the Department of Finance submitted its second package of the Comprehensive Tax Reform Program to the House of Representatives, which aims to be revenue neutral and lower the corporate income tax rate from 30% to 25%, according to The Manila Times. Philippine President Rodrigo Duterte on 19 December 2017 signed into law the Tax Reform for Acceleration and Inclusion, which was the first of the four tax packages, according to The Philippine Star.
The Philippines also launched 10-year dollar-denominated bonds, fulfilling one of the government’s three plans to use offshore markets to fund the country’s spending on infrastructure and social services, according to Business World. Manila also plans to sell yuan-denominated “panda” bonds as early as this quarter and yen-denominated “samurai” debt later in the year.
In Thailand, the national wage committee agreed to increase wages between 5-22 Baht, which will take effect on 1 April, according to The Bangkok Post. Separately, the Bank of Thailand stated its view that monetary policy should remain accommodative to support economic growth and boost inflation to its target range, according to The Bangkok Post.
In Indonesia, the country’s central bank left interest rates unchanged but pledged to accelerate planned changes of rules on reserve requirements to give banks more liquidity and encourage them to invest money, according to The Jakarta Globe. In Vietnam, banks announced they will reduce lending interest rates by 0.5% for prioritized economic sectors, such as small and medium businesses, according to Viet Nam News.
Finally, in Myanmar, TMH Telecom will begin trading on the YSX on 26 January, according to The Myanmar Times, becoming the fifth company to list on the Yangon Stock Exchange. TMH, which provides telecommunications and internet services, raised approximately MMK 1.6 billion, or approximately USD 1.19 million, in proceeds from the offering.
- Jakarta Stock Exchange index (JSX), 1.90%
- Hanoi Stock Exchange Index (HNX), 1.35%
- Philippine Stock Exchange index (PSEi), 1.15%
- Ho Chi Minh Stock Exchange Index (VNI), 1.14%
- Singapore’s Straits Times Index (STI), 0.85%
- Stock Exchange of Thailand index (SET), 0.62%
- Myanmar’s Myanpix index (YSX), 0.59%
- Kuala Lumpur Composite Index (KLCI), 0.34%
- Cambodia Securities Exchange index (CSX), 0.09%
- Lao Securities Exchange index (LSX), -0.73%
Seven of the nine Southeast Asian currencies advanced relative to the US Dollar the week of 15 January, with the Malaysian Ringgit having the greatest appreciation, rising 0.82%. The Myanmar Kyat (MMK) appreciated to its strongest level against the USD in a year after the central bank set its daily reference rate at MMK 1,345/USD on Tuesday, according to The Myanmar Times.
- Malaysian Ringgit (MYR), 0.82%
- Thai Baht (THB), 0.26%
- Singapore Dollar (SGD), 0.23%
- Cambodian Riel (KHR), 0.15%
- Myanmar Kyat (MMK), 0.10%
- Vietnamese Dong (VND), 0.02%
- Indonesian Rupiah (IDR), 0.01%
- Lao Kip (LAK), -0.09%
- Philippine Peso (PHP), -0.73%