SINGAPORE: Singapore shares touched a two-and-half-year closing high on Friday, as industrial output in October climbed for a fifteenth straight month, while Philippine and Vietnam stocks reversed losses from earlier in the day to end higher.
The Singapore stock index closed up 0.6 percent, boosted by data showing the city-state’s industrial production rose 14.6 percent, driven by a continued surge in electronics output. In September, output was up 14.4 percent. The index added 1.8 percent on week, its best week since early October.
Financials and consumer stocks led the gainers, with DBS Group Holdings up 1.5 percent and Thai Beverage climbing 3.2 percent.
Most Southeast Asian stock markets lost ground in the morning session on weak sentiment from Chinese share markets, which fell on concerns about fresh government steps to curb financial risk. Philippine shares recovered from up to 1 percent losses earlier in the session to end 0.3 percent higher, with Ayala Land up 3.7 percent and SM Investments Corp rising 1.1 percent. The index gained 0.7 percent on week.
The turnaround in the Philippine index is “in anticipation that the Senate version of the tax reform bill will be passed tonight or within the next couple of days,” said Manny Cruz, an analyst at the Manila-based Asiasec Equities Inc. “So, that has inspired some buying appetite in the market.”
The Philippine tax reform bill is aimed at generating revenue to fund a multi-billion dollar infrastructure program, critical to President Rodrigo Duterte’s economic agenda. Vietnam closed at a near 10-year high, posting weekly gains of 5 percent, the best week since July 2015.
Beer companies Saigon Beer Alcohol Beverage Corp and Hanoi Beer Alcohol and Beverage Joint Stock company gained 3.6 percent and 3.2 percent, respectively.
Malaysian shares , however, closed at their lowest in more than eight months.
