Posted at Live Trading News on February 02, 2012 — Updated February 01, 2012 16:09 HKT
Markets in ASEAN are set for a strong rally today after lagging the US markets for most of 2012.
Equities in Thailand are at bargain prices, The Stock Exchange of Thailand’s price-to-earnings (P/E) ratio stood at 11.1 times, on par with its long-term ratio. Supported by the government’s massive post-flood rehabilitation funds and stimulus packages, earnings growth of listed firms this year is projected to be in a range of 9% to 12% while dividend yield ratio should be around 4%.
Such performance should be strong enough to cushion the blow of negative global economic factors.
Investors were buoyed overnight by news that manufacturing in the US grew in January at the fastest pace in seven months, adding to signs of a global pickup from Germany to China.
Signs of recovery in the German manufacturing sector brought encouragement to the euro zone, while rates of contraction also eased in Italy, Spain and the Netherlands, according to the Purchasing Managers’ Index (PMI) produced by London-based Markit.
Yesterday, new data showed China’s manufacturing unexpectedly expanded last month on increased new orders, suggesting the world’s second-biggest economy is withstanding Europe’s debt crisis.
Gold rose as the US dollar slipped against the euro and on strong global manufacturing data, while analysts said profit taking could pressure the precious metal after its biggest January gain in 32 years.
•Spot gold was up 0.5 per cent at $US1,745.80 an ounce
•US gold futures for April delivery were up $US8.10 at $US1,748.50 an ounce
•Silver was up 1.9 per cent at $US33.75 an ounce
•Platinum rose 1.9 per cent on the day to $US1,614.99 an ounce
•Palladium also gained 1.9 per cent to $693.47 an ounce
Copper rose for the first time in four days, as talk of an imminent Greek debt deal and encouraging US, Chinese and German manufacturing data fed investors’ appetite for risk.
•London Metal Exchange (LME) benchmark copper rose $US120 or 1.4 per cent to close at $US8,440 per tonne
•In New York, the key March COMEX contract climbed 5.20 US cents to settle at $US 3.8420 per lb
•Nickel firmed $US120 to finish at $US20,975 a tonne