The logo of Bank Indonesia is seen on a window in the bank’s lobby in Jakarta. Indonesian stocks rose on Friday after signs that the centra bank will pause rate cuts. (Reuters photo)
Indonesian shares rose a little over 1% on Friday, as signs that the country’s central bank was moving to pause on rate cuts lifted financials.
Bank Indonesia governor Agus Martowardojo said on Friday that two cuts in its benchmark rate in the last two months are “sufficient”, after it surprised markets by reducing it by a total of 50 basis points to spur economic growth.
The Indonesian index closed slightly above 1%, boosted by Bank Rakyat Indonesia and Bank Central Asia.
The index eked out a marginal 0.6% increase on month.
The Philippine index edged up, as telecom stocks and utilities climbed.
Telecom provider PLDT Inc closed up 3.8%.
The index posted a 2.7% monthly increase.
Singapore fell 0.2%, ending the week steady, as financials dragged.
“Singapore banks have still relatively held up pretty well,” said Joel Ng, an analyst with Singapore-based KGI Securities.
“They have had a good run with 25% gains over the last year.”
DBS Group Holdings, the largest lender by market capitalisation, fell 0.4%. It has however risen about 38% over the last one year up to Thursday’s close.
Oversea-Chinese Banking Corp and United Overseas Bank Ltd, which both lost more than 0.5% on Friday, have gained over 25% during the same period.
Malaysian shares closed at a two-month low, their ninth straight session of losses, the worst losing streak in more than seven years.
Southeast Asian stock markets