Market Wrap by Decoder – 05 Nov 13

• Malaysia/Indonesia markets are closed today.

• KR – FIIs sold W180bn, the highest level since July 8 and they are net sellers for 2 out of the past 3 trading days. As for the local retailers, they continue to redeem in the markets, selling for 43 consecutive days and raising US$6bn worth in cash.

• TH – Thailand’s top FM sold stocks as protest hurts growth. BBL AM runs 7/10 best performing Thai Equity Funds for the past 3 yrs and they have been raising cash since mid Oct.

• HK/CN – Beijing looks to eastern region as growth model. China’s eastern provinces need to press on with industrial upgrades to become models for the rest of the country. Vice Premier Zhang Gaoli told local governments at an internal economic forum Monday, capping a four-day trip to Shanghai and Zhejiang province. Zhang said a major factor in the overhauls will be private investment, which can help drive growth, advance market reform and create jobs. He told the local governments to streamline administrative approvals and create an open and fair environment for private capital to operate. Before his trip ended Monday, Zhang visited Alibaba holdings HQ in Hangzhou, the international container port in Pudong and the newly established free trade zone in Shanghai. Observers said the Central Government intends to use Alibaba as a model of success in the nation’s new economic development. –

• US stocks settled with modest gains due to some BTE corporate earnings and all the 10 sectors were in the green (energy/telco leading them). NYSE value traded was disappointing, down 12% Vs recent 10 days average as investors seek reasons to buy into the markets at current levels. Treasuries held small gains throughout with the 10 years yield shedding 2 bps to 2.6%.