SE Asia Stocks Bangkok extends gain; Jakarta at 2-week high

by **Cals** Wed 27 Mar 2013, 00:55

SE Asia Stocks Bangkok extends gain; Jakarta at 2-week high
Business & Markets 2013
Written by Bernama
Tuesday, 26 March 2013 19:45

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BANGKOK (March 26): Thai stocks rose for a second day on Tuesday as investors bought telecom stocks on strong growth prospects while Indonesian shares climbed to their two-week high amid expectations the parliament would approve a new central bank governor.

Stocks in Singapore, Malaysia and the Philippines ended higher while Asia was steady amid worries Cyprus's bailout could be a template applicable to larger states that might get into difficulty.

Bangkok's SET index gained 1.3 percent to 1,544.03, further recovering from last week's 7.5 percent loss, led by a 4 percent gain in telecoms shares such as Total Access Communication and Advanced Info Service.

CIMB analyst Teerawut Kanniphakul said a launch of 3G service by telecom operators this year was fundamentally positive for the sector.

"Telecoms stocks are among good defensive plays in the event of high market volatility. The sector has a growth story with high dividend payouts," he said.

Jakarta's Composite Index finished up 0.9 percent at 4,842.52, hitting a two week intraday high of 4861.76 at one point as market investors expected Finance Minister Agus Martowardojo to win parliament's approval to become the next head of the central bank.

"I think parliament will approve Agus Marto as the Central Bank Governor. The market should be positive, and at this point the market has already reflected the outcome," said Jakarta-based John Teja, director of Ciptadana Securities.

The Indonesian rupiah turned slightly higher on inflows to the country's stocks and bond markets, traders said.