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 5 February, and in-line with global markets, most stock exchanges in Southeast Asia experienced significant declines, particularly the Ho Chi Minh Stock Exchange Index, which fell more than 9%. Only the Lao Securities Exchange index and the Cambodia Securities Exchange index advanced over the week, rising 2.34% and 1.84%, respectively. The fall in indices around the globe and in Southeast Asia—except for those in Laos and Cambodia—is consistent with the correlation exhibited in 2017 between the S&P 500 in the United States and indices in Southeast Asia, as shown in Figure 1.1.
Figure 1.1: Correlation between S&P 500 and indices in Southeast Asia in 2017
|Index||Correlation with S&P 500 in 2017|
|Jakarta Stock Exchange Index||Positive, Statistically Different from Zero|
|Singapore’s Straits Times Index||Positive, Statistically Different from Zero|
|Kuala Lumpur Composite Index||Positive, Statistically Different from Zero|
|Stock Exchange of Thailand index||Positive, Statistically Different from Zero|
|Philippine Stock Exchange index||Positive, Statistically Different from Zero|
|Myanmar’s Myanpix index||Not Statistically Different from Zero|
|Cambodia Securities Exchange index||Not Statistically Different from Zero|
|Lao Securities Exchange index||Not Statistically Different from Zero|
|Ho Chi Minh Stock Exchange Index||Not Statistically Different from Zero|
|Hanoi Stock Exchange Index||Not Statistically Different from Zero|
In the Philippines, the central bank on Thursday announced that it would hold its benchmark interest rate at 3% and that it assessed inflation would increase in 2018, according to a media release from the bank, leading analysts to estimate the bank will increase its benchmark interest rate in March, according to Business World.
Malaysia has implemented new measures to further develop its capital markets. The new measures concern margin financing and short selling, among others, and include a new relationship with the Singapore Exchange that will allow investors in both countries to invest seamlessly in the other’s market, according to The New Straits Times.
- Lao Securities Exchange index (LSX), 2.34%
- Cambodia Securities Exchange index (CSX), 1.84%
- Jakarta Stock Exchange index (JSX), -1.86%
- Stock Exchange of Thailand index (SET), -2.24%
- Myanmar’s Myanpix index (YSX), -2.43%
- Kuala Lumpur Composite Index (KLCI), -2.71%
- Philippine Stock Exchange index (PSEi), -3.49%
- Singapore’s Straits Times Index (STI), -4.32%
- Hanoi Stock Exchange Index (HNX), -5.22%
- Ho Chi Minh Stock Exchange Index (VNI), -9.15%
Three of the nine Southeast Asian currencies advanced relative to the US Dollar the week of 5 February, with the Philippine Peso having the greatest appreciation, rising 0.17%, and reversing some of its decline from the previous week. The Malaysian Ringgit, Indonesian Rupiah, Thai Baht, and the Singapore Dollar, which have had some of the strongest gains relative to the US Dollar, declined during the week between 0.62% and 1.76%.
- Philippine Peso (PHP), 0.17%
- Cambodian Riel (KHR), 0.09%
- Vietnamese Dong (VND), 0.05%
- Lao Kip (LAK), -0.02%
- Myanmar Kyat (MMK), -0.14%
- Singapore Dollar (SGD), -0.62%
- Thai Baht (THB), -0.80%
- Indonesian Rupiah (IDR), -1.17%
- Malaysian Ringgit (MYR), -1.76%