Stocks across Southeast Asia in four countries rose as possibility of Britain remaining in the European Union increased, reducing market risks.
- Singapore stocks closed more than 1%, led by oil and gas stocks
- Philippines closed 0.6% higher with consumer cyclical such as Bloomberry Resorts Corp leading the market
- Vietnam was up more than 1%, as oil and gas stocks such as Petrovietnam Gas Joint Stock Corp rose
- Indonesia ended higher, helped by energy shares
Britons will cast their votes on June 23 in a referendum on whether to leave the EU. The probability of Britain remaining in the union rose to 72%, up from 60% in the previous week.
“Perception is that the British public is likely to vote in favour of remaining in the EU. If that is the case, it would remove the overhang of risk in the markets,” said Nirgunan Tiruchelvam, an analyst with Religare Capital Markets in Singapore.
Southeast Asian optimism in the context of Brexit
Initially, panic was spreading across markets in fear of Britain exiting the European Union but now it serves as an important reminder to protect the global market.
Countries such as Philippines has expressed optimism about the new President-elect, Rodrigo Duterte, who is beginning his six-year term on June 30. Duterte’s economic team will be committed to boosting infrastructure, fixing traffic congestion and improve investment frameworks. Not only will this serve to improve ecommerce infrastructure and transportation roadblocks, it will also improve Philippines’ economic growth as a whole.
A version of this appeared in Jakarta Globe on June 21. Read the full article here.