JavaScript is off. Please enable to view full site.

Ratings upgrade drives Jakarta’s stock to life-high; Vietnam ends at over 9-yr high

Ratings upgrade drives Jakarta’s stock to life-high; Vietnam ends at over 9-yr high

Saturday, May 20, 2017, 09:00 GMT+7

Indonesian shares vaulted to a record high on Friday, notching their biggest weekly gain since March, after Standard & Poor's (S&P) raised the country's sovereign bond ratings to investment grade, a move long awaited by investors and the government.     Rating agency S&P upgraded Indonesia's sovereign credit outlook to 'BBB-' from 'BB+'. The move reflected its assessment of reduced risks to the country's fiscal position, the agency said.     "This is a well-deserved upgrade, thanks to its prioritization of fiscal sustainability at the expense of growth in 2016," said Trinh Nguyen, Senior Economist for Natixis, based in Hong Kong.     The upgrade would enable Indonesia to access a pool of eligible foreign investors that only invest in at least investment grade (IG)-rated asset, and provide a sentimental boost to equities and the economy, he added.    The Indonesian bond market received foreign inflows of $1.7 billion in April, data showed on Wednesday. The index of Indonesia's 45 most liquid stocks gained as much as 4.2 percent to an all-time high.     The Indonesian benchmark ended 2.6 percent higher driven by financials and telecos. Telkom Indonesia jumped 5.1 percent after media reported that its unit Telkomsigma had entered the public cloud business under the Star Cloud brand.     Vietnam stocks ended at their highest in over nine years, logging a fourth week of gains, buoyed by financial and energy shares. Vietnam National Petroleum Group gained nearly 7 percent, driven by higher oil prices.     Rating agency Fitch on Thursday revised the outlook on Vietnam's long-term foreign- and local currency issuer default ratings (IDR) to 'positive' from 'stable'.     Meanwhile, other Southeast Asian markets largely ended in positive territory as concerns surrounding U.S. politics waned and as traders shifted their focus to local catalysts.     Shares in Thailand and the Philippines ended marginally higher. However, the Philippine index posted a second week of losses.     Defying the broader trend, Singapore shares fell for a fourth straight session, recording their first weekly loss in three. Industrial stocks and telcos were the worst performers.

Reuters

More

Read more

;

Photos

VIDEOS

‘Taste of Australia’ gala dinner held in Ho Chi Minh City after 2-year hiatus

Taste of Australia Gala Reception has returned to the Park Hyatt Hotel in Ho Chi Minh City's District 1 after a two-year hiatus due to the COVID-19 pandemic

Vietnamese woman gives unconditional love to hundreds of adopted children

Despite her own immense hardship, she has taken in and cared for hundreds of orphans over the past three decades.

Vietnam’s Mekong Delta celebrates spring with ‘hat boi’ performances

The art form is so popular that it attracts people from all ages in the Mekong Delta

Latest news