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New Straits Times
6 days ago
- Business
- New Straits Times
Asia equities rally, led by Indonesia and Singapore; currencies muted
SINGAPORE: Equities in emerging Asian markets trended higher on Monday, led by Indonesia, which gained for a sixth straight day, while Singapore's stocks touched a record high for the ninth consecutive session on strong investor inflows. Stocks in Jakarta gained 1.3 per cent to scale their highest since June 18. Index provider MSCI said Barito Renewables , Petrindo Kreasi Jaya and Petrosea would be eligible for future inclusions to its list. The three firms, advancing between 15.7 per cent and 18.6 per cent, are all linked to Indonesian billionaire Prajogo Pangestu, who founded conglomerate Barito Pacific. "Today's push is also helped by clarity from MSCI (that) Barito group stocks are no longer treated as exceptions, making them eligible for future inclusion, which unlocks passive flows," said Mohit Mirpuri, an equity fund manager at SGMC Capital. In Singapore, the benchmark added 0.4 per cent to scale to a fresh peak for the ninth consecutive session, as investors continued to embrace high-return defensive stocks, improving inflow into the local dollar. "Domestic liquidity and market sentiment should also be bolstered by government initiatives aimed at reviving the equity market," said Kenneth Tang, senior portfolio manager at Nikko Asset Management. Broadly, Asian equities slipped on Monday after briefly touching their highest since early 2022 in the previous session. Shares in Taipei fell 0.7 per cent. Currency markets remained on edge but muted in response to fresh tariff threats from US President Donald Trump, who warned of a 30 per cent duty on imports from the European Union and Mexico. The Mexican peso and the euro both weakened overnight, with the latter slipping to a three-week low. The Thai baht was the only gainer among Asian currencies, rising briefly to a six-session peak as gold prices touched a three-week high. Thailand is one of the world's largest gold trading hubs, and fluctuations in prices can significantly impact the baht due to the volume of imports and exports. Elsewhere, the Malaysian ringgit, Philippine peso and Indonesian rupiah weakened around 0.2 per cent. While markets remain jittery over Washington's latest protectionist signals, many investors appear to be betting on a familiar playbook — a policy reversal. Bank Indonesia (BI) is set to announce its interest rate decision on Wednesday. The market is divided on the central bank policy call as the ongoing tariff uncertainties could possibly delay any easing of monetary policy. Radhika Rao, a senior economist with DBS, said that despite a conducive inflation environment, recent financial market action might convince policymakers to stay on pause this week.
Business Times
11-07-2025
- Business
- Business Times
GoTo shares are tipped for rebound after US$2.2 billion sell-off
[SINGAPORE] South-east Asia's worst-performing tech stock this year is poised to rebound as it makes strides towards sustained profits and its fintech business provides plenty of upside potential, analysts say. The beaten-down shares of Indonesia's GoTo Gojek Tokopedia fail to reflect its ongoing profitability turnaround, according to JPMorgan Chase and Aletheia Capital. The e-commerce firm's financial discipline and buybacks also point towards the prospect of an upward re-rating, SGMC Capital said. GoTo shares surged after going public in 2022 but then slid almost 90 per cent to their lows last year. The stock is down 14 per cent in 2025, the worst-performing tech company on the MSCI Asean Index, wiping out US$2.2 billion of market capitalisation in the process. 'Operationally, the company is on a sound footing,' said Nirgunan Tiruchelvam, head of consumer and Internet at Aletheia Capital in Singapore. 'It has done all the right things, but the market for some reason seems to have punished the stock.' GoTo, which was formed via a merger of ride-hailing and food-delivery platform Gojek and e-commerce firm Tokopedia in 2021, reported its third straight quarterly profit on an adjusted basis in April as it cut costs and boosted sales. Adjusted earnings before interest, taxes, depreciation and amortisation, known as Ebitda, climbed to 393 billion rupiah (S$31 million), versus a pro forma loss of 101 billion rupiah a year earlier. Net revenue jumped 37 per cent. One driver of the improvement has been GoTo's fintech business. The firm's digital wallet and lending unit saw revenue jump by 90 per cent year on year last quarter, with monthly transacting users rising to more than 20 million. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up GoTo's fintech 'scale and trajectory is just starting up' and will rival those of its competitors SEA and Grab Holdings in terms of momentum, said Mohit Mirpuri, a senior partner at SGMC Capital in Singapore. 'This could be the dark horse in South-east Asia's fintech race.' Merger talk Another source of upside for GoTo's shares is the potential merger with regional rival Grab. While Grab is weighing a takeover of GoTo at a valuation of more than US$7 billion, regulatory hurdles are considerable. Despite frequent denials, market chatter ratcheted up again last month when Grab's sale of convertible bonds fuelled speculation it was building up a warchest for the acquisition. GoTo's 'current share price seems to have priced in a no-merger scenario and ignores the ongoing profitability turnaround of the business', Henry Wibowo, head of Indonesia research at JPMorgan in Jakarta, wrote in a research note last month. 'GoTo's share price is attractive at the current level and the recent pullback presents a good buying opportunity.' 'Limited upside' Other analysts are more sceptical about any potential rally, especially after GoTo sold its Indonesian online shopping app to China's ByteDance in 2023. 'GoTo likely has a limited upside for now as it no longer has e-commerce business, and Grab is outgrowing it slightly,' said Kai Wang, a strategist at Morningstar in Hong Kong. Much may hinge on GoTo's second-quarter results due this month. Investors will be looking for signs of further growth in the company's fintech business, progress on cost cuts from its decision to use the cloud services of Alibaba Group Holding, and any developments in the potential merger with Grab. In the meantime, bulls are looking beyond the noise. 'I do believe there's room for a rebound even without a merger trigger, especially if the company continues to deliver on profitability, execution, and capital discipline,' SGMC Capital's Mirpuri said. 'The stock right now is caught between reality and rumour. I would just kind of strip out the headlines and focus on the business.' BLOOMBERG
Business Recorder
23-05-2025
- Business
- Business Recorder
Asian currencies: Thai baht falls against dollar
BENGALURU: The Thai baht surrendered early gains on Thursday after the commerce minister called for a weaker currency to bolster exports, while the Philippine peso lagged regional peers over mounting political uncertainty in the Southeast Asian country. Overall, Asian currencies gained on a weak dollar while equities fell. Thailand's currency fell 0.3% to 32.825 per US dollar after rising 0.5% earlier in the day. Equities in Bangkok traded 0.3% lower. Pichai Naripthaphan, the country's commerce minister, said he wanted a weaker baht to support exports and that a level of 36-37 per US dollar was more suitable. The minister said that Thailand's exchange rate policy was not part of ongoing trade negotiations with the United States. 'The intraday reversal likely reflects how sensitive FX markets are to verbal intervention. When a senior policymaker explicitly says the currency needs to weaken, markets take that as a green light,' said Mohit Mirpuri, equity fund manager at SGMC Capital. 'While fundamentals like tourism recovery and current account surplus support the baht medium term, these types of comments can dampen momentum short term.' The Philippine peso was only marginally higher as mounting political uncertainty in the country capped gains, while stocks fell as much as 1.7% to hit their lowest level since April-end. Political instability has deepened in the Philippines after President Ferdinand Marcos Jr. asked for the resignation of his entire cabinet, following a lackluster performance by his allies in last week's Senate elections. Maybank analysts see support for the peso, including rising inflows, as the country's economy remains relatively sheltered. Meanwhile, the central bank of Sri Lanka surprised markets with a 25-basis-point rate cut in a bid to support growth in a country facing lingering economic issues. The Sri Lankan rupee inched higher while equities in Colombo jumped as much as 0.9% to hit their highest since March 3. Among other currencies, the Indonesian rupiah, Taiwan dollar and its Singaporean counterpart gained up to 0.4%, 0.3% and 0.1%, respectively. 'Asia EM FX has mainly been lifted by market perception that the US is looking for a weaker dollar versus Asian currencies, as part of its efforts to address its deep trade imbalances with several Asian economies,' said Lloyd Chan, FX strategist at MUFG. Stocks in Taiwan, Singapore and South Korea slipped 0.6%, 0.1% and 1.2%, respectively. Investor focus remained on US President Donald Trump's tax bill, set for a congressional vote this week.
Business Recorder
20-05-2025
- Business
- Business Recorder
Asia FX mixed against soft dollar
BENGALURU: Most emerging Asia stock markets tumbled on Monday, led by Taiwan, Malaysia and South Korea, as underwhelming economic data from China and a downgrade of United States' credit rating dented sentiment. In Southeast Asia, stocks in Kuala Lumpur fell 1.1% after a mixed bag of economic data from Asia's largest economy, China, pressurised risk appetite. China has been Malaysia's biggest trade and investment partner for nearly two decades. Trade-reliant South Korea's benchmark KOSPI fell as much as 1.3%. The country's financial authorities said they were watching domestic and international markets closely, warning that the US downgrade could exacerbate market volatility. Moody's downgraded the credit rating of the United States on Friday by a notch, citing ballooning debt and interest that it deemed higher than similarly rated sovereigns. 'The downgrade gave investors an excuse to book profit from the stock market near its previous peak,' said Huh Jae-hwan, an analyst at Eugene Investment Securities, referring to the benchmark index in Seoul. The won was 0.9% higher against the dollar, which dropped 0.4%. Taiwan also came under pressure, with its shares falling 1.5%. Taiwan Semiconductor Manufacturing Co, the world's largest chipmaker, fell 1.4%, reflecting broader concerns over the prospects of the global technology sector. Taiwan, a key player in the global semiconductor supply chain, has been increasingly seen by Washington as crucial in its efforts to shift global supply chains away from China, especially for technology and chip companies. The strategic importance of Taiwanese chip firms was underscored during the pandemic, when supply constraints disrupted the global electronics industry. Other equity markets in Asia were downbeat, with shares in Thailand, Philippines and Singapore lower by 0.6%, 0.2% and 0.5%, respectively. Currencies were mixed against a softer US dollar. The Thai baht led gains among its regional peers, adding 0.6% after first quarter economic growth beat market expectations. Elsewhere, the Malaysian ringgit extended losses after the domestic central bank trimmed annual economic growth forecasts. The currency was last trading unchanged. The Indonesian rupiah was steady ahead of a Bank Indonesia meeting later in the week, prefaced by growing expectations of a rate cut. 'While a rate cut could support equities, it may cap any near-term strength in the currency, especially with US yields still elevated and the Federal Reserve in no rush to ease,' said Mohit Mirpuri, an equity fund manager with SGMC Capital.
The Star
19-05-2025
- Business
- The Star
Emerging Markets - Asia forex mixed against soft dollar as Taiwan equities lead losses
SOUTH-EAST ASIA (Reuters): Most emerging Asia stock markets tumbled on Monday, led by Taiwan, Malaysia and South Korea, as underwhelming economic data from China and a downgrade of United States' credit rating dented sentiment. In South-East Asia, stocks in Kuala Lumpur fell 1.1% after a mixed bag of economic data from Asia's largest economy, China, pressurised risk appetite. China has been Malaysia's biggest trade and investment partner for nearly two decades. Trade-reliant South Korea's benchmark KOSPI fell as much as 1.3%. The country's financial authorities said they were watching domestic and international markets closely, warning that the US downgrade could exacerbate market volatility. Moody's downgraded the credit rating of the United States on Friday by a notch, citing ballooning debt and interest that it deemed higher than similarly rated sovereigns. "The downgrade gave investors an excuse to book profit from the stock market near its previous peak," said Huh Jae-hwan, an analyst at Eugene Investment Securities, referring to the benchmark index in Seoul. The won was 0.9% higher against the dollar, which dropped 0.4%. Taiwan also came under pressure, with its shares falling 1.5%. Taiwan Semiconductor Manufacturing Co, the world's largest chipmaker, fell 1.4%, reflecting broader concerns over the prospects of the global technology sector. Taiwan, a key player in the global semiconductor supply chain, has been increasingly seen by Washington as crucial in its efforts to shift global supply chains away from China, especially for technology and chip companies. The strategic importance of Taiwanese chip firms was underscored during the pandemic, when supply constraints disrupted the global electronics industry. Other equity markets in Asia were downbeat, with shares in Thailand, Philippines and Singapore lower by 0.6%, 0.2% and 0.5%, respectively. Currencies were mixed against a softer US dollar. The Thai baht led gains among its regional peers, adding 0.6% after first quarter economic growth beat market expectations. Elsewhere, the Malaysian ringgit extended losses after the domestic central bank trimmed annual economic growth forecasts. The currency was last trading unchanged. The Indonesian rupiah was steady ahead of a Bank Indonesia meeting later in the week, prefaced by growing expectations of a rate cut. "While a rate cut could support equities, it may cap any near-term strength in the currency, especially with U.S. yields still elevated and the Federal Reserve in no rush to ease," said Mohit Mirpuri, an equity fund manager with SGMC Capital. - Reuters
