SINGAPORE: Philippine shares fell on Monday following a warning that the coronavirus pandemic will likely send the economy into its first annual contraction in more than two decades this year, while financials helped Singapore rise after five sessions of losses.
Philippine gross domestic product would likely shrink by 0.2% in 2020 before bouncing back to about 7.7% as policy support measures gain traction, the central bank governor said on Saturday.
The government expects "Q1 GDP will contract, and this is what investors are responding to most likely," said Ruben Asuncion, chief economist at The Union Bank of the Philippines.
The benchmark Philippine stock index declined as much as 1.6% to a three-week low. Consumer stocks led the fall, with conglomerate SM Investments shedding 3.4% to its lowest since March 31, while food and beverage company Universal Robina Corp fell 1.5%.
Indonesian shares slipped as much as 0.4%. Both property developer Nusantara Properti International and cosmetic products maker Mustika Ratu fell by 7%.
Singapore's FTSE Straits Times Index led gains in the region, with a rise of up to 1.5% - its best intraday jump since April 17. Market participants were optimistic about the earnings of lenders ahead of first-quarter results starting later this week.
Analysts say they believe the performance of banks would remain resilient despite the coronavirus crisis. DBS Group, Southeast Asia's largest lender, climbed 2.5% to a one-week high, while United Overseas Bank gained 1.6%.
Thai shares gained as much as 1.1%, lifted by industrial and utility stocks. Airports of Thailand rose 1.7%, while Gulf Energy Development gained nearly 3.3%.
Malaysian stocks strengthened up to 0.5%, helped by the healthcare and telecom sectors. Digi.com gained 2.1% in its best intraday rise in more than a week, while IHH Healthcare advanced over 2.1%. Malaysia will sell 4 billion ringgit ($919.54 million) government bonds maturing on May 31,2027, the central bank said. - Reuters
Philippine gross domestic product would likely shrink by 0.2% in 2020 before bouncing back to about 7.7% as policy support measures gain traction, the central bank governor said on Saturday.
The government expects "Q1 GDP will contract, and this is what investors are responding to most likely," said Ruben Asuncion, chief economist at The Union Bank of the Philippines.
The benchmark Philippine stock index declined as much as 1.6% to a three-week low. Consumer stocks led the fall, with conglomerate SM Investments shedding 3.4% to its lowest since March 31, while food and beverage company Universal Robina Corp fell 1.5%.
Indonesian shares slipped as much as 0.4%. Both property developer Nusantara Properti International and cosmetic products maker Mustika Ratu fell by 7%.
Singapore's FTSE Straits Times Index led gains in the region, with a rise of up to 1.5% - its best intraday jump since April 17. Market participants were optimistic about the earnings of lenders ahead of first-quarter results starting later this week.
Analysts say they believe the performance of banks would remain resilient despite the coronavirus crisis. DBS Group, Southeast Asia's largest lender, climbed 2.5% to a one-week high, while United Overseas Bank gained 1.6%.
Thai shares gained as much as 1.1%, lifted by industrial and utility stocks. Airports of Thailand rose 1.7%, while Gulf Energy Development gained nearly 3.3%.
Malaysian stocks strengthened up to 0.5%, helped by the healthcare and telecom sectors. Digi.com gained 2.1% in its best intraday rise in more than a week, while IHH Healthcare advanced over 2.1%. Malaysia will sell 4 billion ringgit ($919.54 million) government bonds maturing on May 31,2027, the central bank said. - Reuters
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