Sept 27 (Reuters) – Most Southeast Asian equities fared well
on Thursday after an anticipated U.S. Federal Reserve rate
increase shored up regional sentiment ahead of expected rate
hikes in Indonesia and the Philippines later in the day.
Bank stocks assisted Singapore shares advance as much
as 0.7 percent, for a seventh straight session in the black.
Lender Oversea-Chinese Banking was the biggest
contributor to gains in the benchmark.
“After yesterday’s late afternoon unwind, there’s some
bargain-hunting going on after that dip,” said Stephen Innes,
Head of Trading, APAC at OANDA.
The Philippine index, however, declined for its third
session and lost up to 0.6 percent.
Telecom and utilities accounted for most of the fall with
top drag telecom service provider PLDT Inc falling as
much as 5.1 percent to its weakest level in over two months.
Innes blamed the fall on a number of factors including twin
deficits, the prospect of rising inflation and an expected
hawkish rate hike.
“The BSP is going to come out with interest rates, guns
blazing, but they have to tame inflation but also tame the
currency a little bit,” said Innes.
Inflationary pressures in the Philippines have been steadily
rising since January due to higher taxes, a weak peso, and
rising food and fuel costs.
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