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 29 January, two of the ten indices in Southeast Asia advanced, with the Kuala Lumpur Composite Index leading all indices with a gain of 0.89%. The Philippine Stock Exchange index had the greatest decline during the week, falling 2.55%.
In Vietnam, the chairman of Saigon Securities Incorporation stated investors should not expect Vietnam to reach emerging market status in 2018—MSCI currently categorizes the market as “frontier”—as several requirements must still be met, according to Viet Nam News. The submission of English-language information disclosures is one of the components that needs to be addressed.
In the Philippines, the central bank could introduce a risk management measure that would require banks to set aside additional capital as reserves, which would cover potential losses amid rapid loan growth, according to Business World. The measure is referred to as the “countercyclical capital buffer” and is part of the Basel III framework.
The Thai government has approved 168 infrastructure development projects worth a combined THB 989 billion for its flagship Eastern Economic Corridor, according to The Bangkok Post. Government, public-private partnerships, state-owned enterprises, and the Royal Thai Army will account for 30%, 59%, 10%, and 1% of the investment, respectively.
In Myanmar, the central bank has no plans to change existing interest rates until 2020, according to its vice governor, as reported in The Myanmar Times. Finally, negotiators from the 16-member countries of the Regional Comprehensive Economic Partnership met in Indonesia on Friday to attempt to accelerate completion of the trade pact in the wake of the finalized Trans-Pacific Partnership, according to Thailand Business News.
Weekly gains
- Kuala Lumpur Composite Index (KLCI), 0.89%
- Myanmar’s Myanpix index (YSX), 0.68%
Weekly declines
- Stock Exchange of Thailand index (SET), -0.08%
- Jakarta Stock Exchange index (JSX), -0.48%
- Ho Chi Minh Stock Exchange Index (VNI), -0.95%
- Singapore’s Straits Times Index (STI), -1.05%
- Lao Securities Exchange index (LSX), -1.40%
- Cambodia Securities Exchange index (CSX), -1.50%
- Hanoi Stock Exchange Index (HNX), -2.25%
- Philippine Stock Exchange index (PSEi), -2.55%
Currencies
Three of the nine Southeast Asian currencies advanced relative to the US Dollar the week of 29 January, with the Myanmar Kyat having the greatest appreciation, rising 0.19%. The Philippine Peso had the greatest decline, depreciating 1.34%.
The Bank of Thailand announced it will allow retail investors to put money directly into overseas securities to encourage more capital outflows in an effort to stem the Baht’s rise, according to The Bangkok Post. The Baht increased 10.1% in 2017 and 3.5% year-to-date.
Weekly appreciations
- Myanmar Kyat (MMK), 0.19%
- Lao Kip (LAK), 0.06%
- Vietnamese Dong (VND), 0.00%
Weekly depreciations
- Cambodian Riel (KHR), -0.09%
- Thai Baht (THB), -0.37%
- Malaysian Ringgit (MYR), -0.42%
- Singapore Dollar (SGD), -0.92%
- Indonesian Rupiah (IDR), -0.97%
- Philippine Peso (PHP), -1.34%
