Indonesian and Philippine stocks hit their record highs on Wednesday as the sentiment got a boost after Federal Reserve Chair Janet Yellen suggested that the US central bank would not rush into raising interest rates.

The Jakarta Composite Index hit an all-time high of 5,448.70, while the Philippine index touched a new high of 7,862.91 in early trades. Indonesian stocks were up 0.3 per cent and the Philippine shares were higher 0.1 per cent at 0739 GMT.

Yellen told the Senate Banking Committee late on Tuesday that the US central bank was preparing to consider interest rate hikes “on a meeting-by-meeting basis’’.

“The Fed is signalling that it may start raising rates in the second half of this year, but likely to be at a gradual pace. This increases optimism that the Fed may increase its rate by less than initial expectation of 100 bps by the end of this year,’’ Jakarta-based Trimegah Securities said in an investor note.

Bangkok-based KGI Securities said in a report after the testimony that the probability of a rise in US interest rates by September has fallen to 45 per cent from 51 per cent, “showing the consensus has shifted to October”. ‘

The Thai SET index was down 0.4 per cent by midday, dragged down by telecom shares after a local media said the country’s telecom regulator had confirmed that planned auctions for fourth-generation spectrum will definitely be postponed.

Thailand’s largest mobile phone operator, Advanced Info Service PCL, declined 3.4 per cent, while Total Access Communication Pcl fell 3.7 per cent.

Analysts said the Thai index’s gain was limited due to expensive shares and slower economic growth.

“So we continue to prefer mid caps and high-yield plays more than big caps,’’ KGI Securities said.

Singapore was up 0.2 per cent, while Malaysia and Vietnam were down 0.4 per cent and 0.7 per cent, respectively.

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Published on February 25, 2015