Philippine and Indonesian stocks advanced to all-time highs, led by financial shares, after Bank of the Philippine Islands reported record profits and PT Bank Rakyat Indonesia (BBRI) reported earnings that beat analyst estimates.
The Philippine Stock Exchange Index (PCOMP) climbed 1.3 percent to 6,321.76 at the noon break in Manila. The Jakarta Composite Index (JCI) rose 1.4 percent to 4,517.82. The two indexes were the biggest gainers today among Asian markets tracked by Bloomberg. Bank of Philippine Islands jumped 3.9 percent and Bank Rakyat advanced 1.9 percent.
Lenders in the Philippines, Indonesia and India are the “most attractive,” with the “highest next-12-month banking sector performance” outlook among Asian emerging markets this year, according to a BernsteinResearch report dated Jan. 31. The report also surveyed markets in China, Malaysia and Thailand.
“Indonesia and the Philippines are considered among the most attractive markets in Southeast Asia because of their improving economy and strong consumer base,” said Jonathan Ravelas, chief market strategist at BDO Unibank Inc. in Manila. “Banks give investors a good and broad exposure to those markets and their dynamics.”
Bank of the Philippine Islands (BPI), the nation’s biggest lender by market value, advanced to 103.90 pesos. Profit rose 27 percent to a record 16.3 billion pesos ($400 million) last year, the bank said yesterday after the close of trading.
Bank Rakyat, Indonesia’s second-largest lender by assets, rose 1.9 percent to 8,100 rupiah, heading for the highest close based on prices going back to November 2003. Full-year net income jumped 23 percent to 18.5 trillion rupiah ($1.9 billion), exceeding the 17.08 trillion-rupiah median estimate of 29 analysts in a Bloomberg survey.
Bank Negara Indonesia (BBNI) jumped 8.3 percent to the highest since August 2011, Bank Mandiri Persero surged 5 percent to a record and Bank Central Asia increased 3.6 percent, also heading for an all-time high.
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