KLCI: +0.12% to 1799.6
JCI: +0.61% to 4546.6                           SET: +1.06% to 1484.7
HSI: +1.06% to 23340                            HSCEI: +0.71% to 10644
Nifty: +2.37% to 6189.4                         ASX200: +0.73% to 5321.5
Nikkei: -0.17% to 14561                        S&P500: +0.65% to 1744.5
      
MARKET OUTLOOK:
By Joshua Tan, Head of Research

Macro Data

China’s gross domestic product expanded 7.8% on-year in the third quarter of the year, snapping two-quarters of slowing growth in China. The economy expanded 2.2% in the third quarter from the previous three months, the strongest expansion by that measure in five quarters, according to the National Bureau of Statistics. Growth in Jan-Sep clocked at 7.7% compared to the same period last year. Industrial output growth slowed to 10.2% on-year in September from August’s 10.4%, while retails sales growth edged down to 13.3% over the year as compared to previous month’s 13.4%. Meanwhile, fixed asset investment growth, a measure of government spending on infrastructure, softened to 20.2% on year-over-year terms for the first nine months in 2013.

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Regional Market Focus

Singapore

• The benchmark STI closed 6.28 points higher at 3192.90 (+0.20%). The 1.71bn shares traded were worth S$1.04bn in value.
• The FTSE ST Mid Cap Index gained +0.46% while the FTSE ST Small Cap Index gained +0.19%. The top active stocks were SingTel (-0.27%), OCBC Bk (-0.10%), Ascendas REIT (+1.74%), CapitaMall (+1.80%) and Capitaland (-0.31%).
• We peg key near term support at 3,100 levels.
• Top Picks are DBS (Accumulate, TP: S$17.50), SingTel (Accumulate, TP: S$3.99) and Keppel Corp (Accumulate, TP: S$12.07). Deep Value Plays are Amara (Buy, TP: S$0.74), Boustead (Buy, TP: S$1.94) and Courts (Buy, TP: S$1.03).

Thailand

• The SET index gained 1.06% last Friday on easing concern over debt ceiling while the QE tapering is widely expected to delay for quite some time as the earlier partial government shutdown appeared to have an adverse impact on economic growth.
• Even though the debt ceiling has been extended to mid-February, the impact appeared to drag US economic growth slower than earlier expected. Hence, the market raises optimism the Fed would keep the monthly pace of QE intact, which is expected to boost the sentiment. According to Bloomber’s surveys, economists expect the Fed to keep the QE pace going at the same pace until March 2014.
• Funds would continue to pour into Thai bourse from the prior week, but it is likely to gradually accumulate equities, instead of chasing price. Meanwhile, the amendment bill and the anti-government protests should bear a close watch. For the near term, we maintain our target around 1500 points with first support at 1460 points.

Indonesia

• The Jakarta Composite Index (JCI) inched up on Friday (18/10), along with mostly rising stock indexes in Asia after data showed China’s gross domestic product grew faster in the third quarter. The JCI gained 27.641 points, or 0.61%, to end at 4,546.571. Gains on Friday included eight of the 9 major industry groups, led by basic industry sector with 2.28%-advance, followed by property, construction and real estate sector with 1.77%-climb, and mining sector with 0.93%-gain. The LQ45 index rose 5.792 points, or 0.76%, to 767.708. Gainers outran decliners 134 to 98 Friday on the Indonesia Stock Exchange, where 4.22 billion shares worth IDR 4.4 trillion traded on the regular board. Foreign investors’ transactions accumulated to a net sale of IDR 95.02 billion.
• The Jakarta Composite Index (JCI) will likely trade higher today, as market’s attention turned away from US debt ceiling and to third quarter earnings. We expect the JCI to advance today, with support and resistance at 4,486 and 4,577, respectively.

Sri Lanka

• Sri Lanka is closed for holiday on 18 October 2013.

Australia

• The S&P/ASX 200 index added 38.4 points to 5,321.5, the highest closing level since June 2008. The benchmark ended the week 1.7 per cent higher, the biggest weekly gain in three months. Australian shares rose 0.7 per cent on Friday, extending gains as China's economic data showed a pick-up in growth momentum, just a day after the US pulled off an 11th-hour deal preventing a potentially catastrophic US debt default.
• Australia market continues its uptrend this morning pertaining to the US and European markets finished last week on a positive note as the end of the US government shutdown continued to buoy investor sentiment.

Hong Kong

• HSI climbed 245 points or 1.06% to 23,340. CEI gained 75 points or 0.71% to 10,644. Trading volume increased to HKD61.267 billion.
• HSI was firmer with S&P index touching the record high, HSI opened at 23,261 (+166 points). On the macro economic front, China GDP growth in 3Q13 came in at in-line 7.8%. 
• Macau gambling sector out-performed and led HSI up. Sands China (1928.HK) and Galaxy Ent (27.HK) 9.2% and 4.1% respectively.
• AIA (1299.HK) gained 4.4% after posting better-than-expected value of new business growth in 3Q13.
• Summit Ascent (102.HK) surged 12% after HK$539 million placement for funding the gaming and resort development project in Russia. 
• Technically, HSI retained above 10-MA and 20-MA. We stay bullish to eventual break to retest the 23,554 high. The next resistance and support for HSI are 23,554 and 23,000 respectively.

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Morning Note
Company Highlights

ASIAN MICRO HOLDINGS announced a very substantial acquisition or reverse takeover of Oxley Global Limited by way of shares exchange.  (Closing Price: S$0.038, 2.70%)