By Chua Baizhen
SINGAPORE, Dec 17 (Reuters) - Southeast Asian stock markets
took another beating on Monday as financials such as DBS Group
<DBSM.SI> and Singapore Exchange <SGXL.SI> faltered on dwindling
hopes of further U.S. rate cuts to curb an economic slowdown.
Shares in Singapore, Malaysia and Indonesia all fell for
their fourth-straight session to their lowest levels in almost
three weeks, after regional markets were battered last week by
fears of more U.S. subprime mortgage writedowns.
Inflationary pressure in the United States dampened prospects
of more interest rate cuts in the world's largest economy, after
government data showed on Friday that consumer prices there rose
the most in more than two years in November. [ID:nN14305067]
Singapore's Straits Times Index <.STI> dipped 3.3 percent,
Kuala Lumpur stocks <.KLSE> slipped 0.8 percent, while the
Jakarta Composite Index <.JKSE> fell 2.7 percent led by losses in
telecom firms.
Thai shares <.SETI> were down 2.3 percent by 0950 GMT, the
Philippine index <.PSI> dropped 1.5 percent, and Vietnam's main
stock index <.VNI> slid 1.2 percent.
But AMP Capital Investors' Shane Oliver said markets had
overreacted to the U.S. inflation data.
"Our assessment remains that concerns about inflation are
misplaced and that lower global growth will lead to both lower
oil prices and excess capacity, both of which will put downwards
pressure on inflation through 2008," said Oliver, the firm's head
of investment strategy and chief economist.
Losses in Singapore were led by a 3.4 percent decline in the
region's top bank DBS Group. The country's second-largest lender
United Overseas Bank <UOBH.SI> dropped 3.6 percent, while No. 3
Oversea-Chinese Banking Corp <OCBC.SI> fell 2.9 percent.
"While the global credit woes have taken the shine off the
(banking) sector in 2H07, we believe that once the subprime issue
blows over, prospects will start to look better in 2H08," said
Carmen Lee, OCBC's head of research, in a client note.
She said Singapore banks, which had been lifted by strong
loans growth and fee income this year, would still be supported
by fee-based activities next year as well as possibilities for
more mergers and acquisitions.
Investors also sold Singapore Exchange <SGXL.SI>, which is
often seen as a barometer for trading appetite, pushing the
bourse operator down 6 percent.
Singapore Telecommunications <STEL.SI>, Southeast Asia's
largest telecom firm and the city-state's most-heavily weighted
counter, fell 4.6 percent as the stock went ex-dividend on
Monday. The payout will comprise a dividend of 5.6 Singapore
cents to be paid on Jan 10, 2008.
Indonesia's index was also hit by falls in telecom stocks
after a member of the country's anti-trust agency said the body
would escalate an investigation into alleged price-fixing of
tariffs for mobile phone text messages. [ID:nJAK108361]
Top telecom firm PT Telekomunikasi Indonesia Tbk <TLKM.JK>,
which owns the country's largest mobile phone operator PT
Telekomunikasi Selular, fell 3.4 percent.
Number two mobile operator PT Indosat Tbk <ISAT.JK> fell 2.8
percent, while number three PT Excelcomindo Pratama Tbk <EXCL.JK>
plunged 9.1 percent.
In Malaysia, top lender Malayan Banking <MBBM.KL> fell 1.7
percent, while stock exchange operator Bursa Malaysia <BMYS.KL>
was down 2.1 percent.
(Editing by Neil Chatterjee)
(([email protected]; +65 6403 5658; Reuters Messaging:
[email protected]))
FACTORS TO WATCH
*Singapore Airlines Nov load factor rises [nSGC001544]
*Indonesia agency says to escalate telecoms probe [nJAK108361]
*Singapore Nov exports slide, sales to Europe weak [nSP74204]
*Vietnam brokerage SSI plans 2008 Singapore listing [nHAN99609]
*Asia Coal-Prices ease, but hold near record high [nSIN93702]
*Malaysia's Oct manufacturing sales down 2 pct yr/yr[nKLA006490]
*Thai cenbank to talk capital controls at 0930 GMT [nBKK83429]
*Philippines' Nov BOP deficit $67 million [nMAN109812]
*Philippine growth to cool in 2008 after strong 2007[nMAN37061]
For South East Asia Hot Stock reports, click;
[.SI] [.KL] [.BK]
SOUTHEAST ASIAN STOCK MARKETS
Change on the day at 0922 GMT
Market Current Prev Close Pct Move
Singapore 3353.56 3466.38 -3.25
Bangkok 819.16 836.40 -2.06
Manila 3486.82 3538.69 -1.47
Jakarta 2664.92 2740.06 -2.74
Kuala Lumpur 1391.61 1403.41 -0.84
Ho Chi Minh 911.15 922.09 -1.19
Change on year
Market Current End prev yr Pct Move
Singapore 3353.56 2985.83 +12.32
Bangkok 819.16 679.84 +20.49
Manila 3486.82 2982.54 +16.91
Jakarta 2664.92 1805.52 +47.60
Kuala Lumpur 1391.61 1096.24 +26.94
Ho Chi Minh 911.15 751.77 +21.20
For South East Asia Hot Stock reports, click;
[.SI] [.KL] [.BK]
ASIA-PACIFIC STOCK MARKETS:
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Keywords: MARKETS SOUTHEASTASIA STOCKS
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Keywords: MARKETS SOUTHEASTASIA STOCKS