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Most Southeast Asian stock markets rose on Thursday with Philippines leading the gains, while Singapore fell on disappointing December export data. A bounce-back in real estate stocks helped the benchmark Philippine index snap two straight sessions of declines and close 0.8 percent higher. SM Prime Holdings Inc rose 3.5 percent, following the previous session's sharp fall on a report that one of its reclamation projects may be shelved. The company when contacted said it had a good case to get the project, said Rachelle C Cruz, an analyst with AP Securities.

She said SM Prime added it had been compliant with government regulations and had received a provisional notice to proceed with its plan. "Whenever property companies as well as banks of these conglomerates (holding companies) do well, the parent companies also do well. Since they have sizable weight on the index, they essentially guide the movement of the index. So whenever they recover, the index also recovers," she said.

Meanwhile, foreign investors have invested a sizeable amount in Indonesia and the Philippines, helping these markets start the new year on a firm note. "When the US dollar weakens, they (foreign investors) tend to shift to emerging markets, also to take advantage of the differential of interest rates," she said.

"In terms of GDP forecast for 2019, we expect to maintain a strong growth especially for Vietnam, Indonesia and the Philippines. That's why their indices tend to get more inflows in the region." Malaysian shares rose 0.6 percent, boosted by consumer cyclicals. Genting Bhd added 6.2 percent, while Petronas Chemicals Group Bhd gained 1.5 percent. Indonesian shares closed marginally higher after the central bank held interest rates and said the current level was "near its peak". Meanwhile, Singapore shares closed 0.5 percent lower following an unexpected fall in December exports.

The city-state's exports recorded the worst decline in more than two years in December, falling 8.5 percent compared to an expectation of a 1.5 percent rise in a Reuters poll.

Copyright Reuters, 2019


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