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.
Indices
During the week of 13 November, four of the ten indices in Southeast Asia advanced, with economic and political events probably influencing market movements in several countries. Vietnam’s two indices for the second consecutive week increased the most and added to their leading year-to-date returns. The Ho Chi Minh Stock Exchange (VNI) gained 2.59%, slightly less than its 2.90% gain the previous week, and the Hanoi Stock Exchange (HNX) gained 1.82%, which is just below its increase of 1.93% the prior week. Year-to-date, the VNI has gained 33.96% and the HNX 35.18%.
The Philippines and Malaysia reported gross domestic product (GDP) growth for the third quarter that easily outpaced analysts’ estimates. The Philippines reported third quarter GDP growth of 6.9%, which exceeded estimates ranging from 6.3-6.6%, according to The Manila Times. Additionally, second quarter growth was revised higher to 6.7% from 6.5%, according to The Manila Times. In Malaysia, Bank Negara reported third quarter GDP growth of 6.2%, which surpassed the median forecast of 5.7%, according to The New Straits Times. Nevertheless, the strong GDP results were not enough to reverse the market losses from earlier in the week. In Malaysia, this is possibly because the strong growth could increase the likelihood the central bank raises interest rates as soon as the bank’s next meeting in January 2018.
In Cambodia, the Cambodian Supreme Court on Thursday ordered the dissolution of the Cambodia National Rescue Party (CNRP), the country’s primary opposition party, which resulted in the removal of elected CNRP representatives at the local and national level, according to The Phnom Penh Post. The Cambodia Securities Exchange dropped 2.70% over the week.
In Myanmar, the Myanpix index closed on Thursday at its lowest levels since the index’s inception, falling to 451.39, before slightly increasing on Friday. The Myanpix is down 6.72% over the past four weeks and year-to-date has declined 19.15%. One reason for its recent decline could be the threat of sanctions from the US and EU over the country’s handling of the Rohingya crisis, as reported in The Wall Street Journal and The Myanmar Times.
Weekly gains
- Ho Chi Minh Stock Exchange Index (VNI), 2.59%
- Hanoi Stock Exchange Index (HNX), 1.82%
- Stock Exchange of Thailand index (SET), 1.19%
- Jakarta Stock Exchange index (JSX), 0.50%
Weekly declines
- Singapore’s Straits Times Index (STI), -1.10%
- Kuala Lumpur Composite Index (KLCI), -1.18%
- Philippine Stock Exchange index (PSEi), -1.45%
- Lao Securities Exchange index (LSX), -1.62%
- Cambodia Securities Exchange index (CSX), -2.70%
- Myanmar’s Myanpix index (YSX), -4.64%
Currencies
Eight of the nine Southeast Asian currencies advanced relative to the US Dollar the week of 13 November, with the Malaysian Ringgit for the second week increasing the most, appreciating 0.87%. The Ringgit’s rise during the week probably is due in part to the country’s strong GDP growth in the third quarter and the likelihood it increases the probability the Malaysian central bank will increase interest rates next year.
The Myanmar Kyat has held at 1,369.50 to one US Dollar since 27 October, which year-to-date is a depreciation 0.29% to the Dollar. Earlier in the year, the Kyat appreciated as much 1.45% and depreciated as much as 0.80%. In 2016, it appreciated as much as 12.12% to the Dollar and depreciated as much as 5.78%.
Weekly appreciations
- Malaysian Ringgit (MYR), 0.87%
- Thai Baht (THB), 0.87%
- Philippine Peso (PHP), 0.82%
- Singapore Dollar (SGD), 0.29%
- Indonesian Rupiah (IDR), 0.11%
- Cambodian Riel (KHR), 0.10%
- Lao Kip (LAK), 0.03%
- Vietnamese Dong (VND), 0.00%
- Myanmar Kyat (MMK), 0.00%
Weekly depreciation
- None
