asia-invest.info

In 2008 there were 19 new companies, who went public and are now listed at the Indonesia Stock Exchange (IDX).

2009

Today Bangko Sentral ng Pilipinas (BSP) reported the latest data on foreign portfolio investments.

In June 2008 foreign portfolio investments reached a net outflow of USD 145.6 million compared to a net inflow of USD 871.41 million in June 2007. For the first six months of 2008 foreign portfolio investments increased to a net outflow of USD 417.4 million compared to a net inflow of USD 2.552 million in the first six months of 2007.

About USD 466 million or 79% of the registered gross foreign portfolio investments inflow in June 2008 went to shares listed in the Philippine Stock Exchange (PSE), while only USD 279 million or 38% of the capital repatriation come from withdrawls of investments in PSE listed shares.

These lastest figures confirm that the inflow of “hot money” from foreign fund managers came to an end in the face of worsening risk profiles in emerging markets.

The United Kingdom, United States and Singapore remained the top three investor countries and collectively contributed 67% of investment funds during the first six months of 2008.

In May 2008 Mark Mobius, Templeton Asset Management Ltd.’s top manager for emerging market equities, recommended to invest into Thailands stock market. On May 26th, an article on Bloomberg.com titled Mobius Expects Thai Stocks to Extend Gains on Tax Cuts, Exports painted a bright picture of the Thai stock market. On the same day the SET index closed at 856,80 points. Today, less than one month later, the Thai stock market dropped again, leaving the SET index at 742,46 another loss of 23.28 points compared to the day before. A loss of more than 13% in less than one month does not really encourage investors!

While today Finance Minister Surapong Suebwonglee speaks at a seminar on Thai stock market at the Grand Hyatt Erawan Hotel in Bangkok, investors might have to ask themselves several questions.

How will Bank of Thailand’s Monetary Policy Committee decide, when it meet to discuss interest rates on July 16th and August 27th? How will any decision influence GDP growth and inflation? A year on year GDP growth of 6% was still in favour of stock investors while the inflation rate of 7.6% in May 2008 already raised fears about the future.

What will happen when anti-government marches planned for tomorrow will surround Prime Minister Samak Sundaravej’s office and do not leave until he resigns from office? Will Thailand’s police be able to handle the protesters or will protest turn violent and might the army take action again?

In 2006 Prime Minister Thaksin Shinawatra was ousted in a military coup and on May 29st, 2008 The Economist reported that protest and coup rumours return. A wellknown investor recommend once to buy stocks, when the streets are full of blood. Hopefully the street protests will not turn violent, but it seems that brave investors should start to buy Thai stocks, mutual funds or simple index certificates.

Those who invested on January 10th, 2007 into SET certificates at 622.27 could earn more than 45% until October 31st, 2007, when the SET index closed at 907.28 points. As a matter of fact the situation in not clear at all. But if the market falls below 700 points, it is time to start with investments and to accumulate even if the markets continues to drop!

In the first quarter of 2008 PT Bakrieland Development posted a net profit increase of 116.5% to IDR 30.1 billion from IDR 13.9 billion in the same period of 2007.

The profit increase was attributed to a 83.4% rise in sales from IDR 111.4 billion in the first quarter of 2007 to IDR 204.3 billion in 2008. Bakrielands operating profit also grew 159.2 % to IDR 50.8 billion compared to IDR Rp 19.6 billion in the first quarter of 2007.

CEO Hiramsyah Thaib expects to meet the revenue target of IDR 1.1 trillion.

PT Bakrieland Development is a publicly listed property developer and develops real estate and resorts projects for the middle-to-high-income markets, such as Rasuna Epicentrum in Kuningan, South Jakarta, and the Legian Nirwana Suites and Residences in Kuta, Bali. Additionally to several middle-lower-income residential properties, such as the Sentra Timur Residence in Pulogadung, East Jakarta the company also invests in infrastructure projects.