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SE Asia Stocks-S'pore banks at 7-mth highs, Thai builders up

Published: 06 May 2009 02:43:48 PST

* Singapore leads regional gains; banks at 7-month highs

* Government spending plan lifts Thai builders

BANGKOK, May 6 - Singapore stocks jumped 5 percent on Wednesday as better-than-expected quarterly results pushed shares in big banks to a seven-month high, while news on government stimulus spending boosted Thai building stocks.

Singapore <.FTSTI> ended up 5.1 percent at its highest close since Oct. 14, after a 14 percent rally over the past four sessions as equity fund managers warmed to Southeast Asia's biggest stock market amid hopes for an economic recovery.

United Overseas Bank <UOBH.SI>, the second biggest bank, surged 13 percent, while third-ranked Oversea-Chinese Banking Corp <OCBC.SI> gained 4.6 percent.

The two banks posted smaller-than-expected falls in earnings as they made more loans at higher rates, which partially offset jumps in bad-debt charges.

DBS Group <DBSM.SI>, Southeast Asia's biggest bank, which is due to release its quarterly earnings on May 8, rose 8.1 percent, while heavyweight SingTel <STEL.SI> climbed 7 percent.

Thai stocks <.SETI> rose 3.3 percent to their highest since Oct. 7 as investors reckoned that cabinet approval of a $23 billion borrowing plan to finance stimulus spending and fiscal deficits would help both the economy and the building industry.

"The stimulus package to be implemented from 2010 to 2012 is expected to further drive economic growth and be a major trading catalyst," said Kim Eng Securities analyst Pongpan Apinyakul.

Shares in building-related sectors made hefty gains, with top builder Italian Thai <ITD.BK> surging 7.6 percent, Tata Steel (Thailand) <TSTH.BK> rising 5.5 percent and top industrial conglomerate Siam Cement <SCC.BK> 3.3 percent higher.

Energy heavyweight PTT <PTT.BK> was up 6.3 percent and the biggest bank, Bangkok Bank <BBL.BK>, added 2.2 percent.

Elsewhere, Malaysia <.KLSE> climbed 1.5 percent, Indonesia <.JKSE> was up 1.5 percent and Philippine shares <.VNI> rose for a fourth day, up 0.4 percent.

Gainers in the region included Malaysia's Maybank <MBBM.KL>, which rose 7.4 percent, Indonesia's Perusahaan Gas Negara <PGAS.JK>, which gained 6.7 percent, and Bank of the Philippine Islands <BPI.PS>, which was up 2.4 percent. ($1 = 35.10 Baht)