Friday, June 4, 2010

Southeast Asian stocks fall on euro zone worries

BANGKOK: Southeast Asian stock markets fell on Tuesday, June 1 as euro zone worries prompted investors to reduce their stakes in risky assets, especially shares in companies that have greatest exposure to any economic slowdown.

Indonesia fell 2.6 percent, Singapore lost 1.3 percent, Thailand slid 1.3 percent and Malaysia's FBM KLCI closed 0.2 percent down.

"The bottom line is the recovery from the current European crisis. Investors want to see whether European countries can weather the debt crisis soon," said a Singapore-based analyst.

"Confidence has been shaken ... From time to time there may be bargain-hunting, but investors are trying to reduce their exposure by selling shares that may get affected by the euro zone crisis."

In Singapore, top lender DBS Group fell 2.1 percent and Oversea-Chinese Banking Corp. slid 1.6 percent, while Genting Singapore closed 6.6 percent weaker.

Indonesia, Southeast Asia's best market this year, fell from a near-two-week high as the country's inflation rate hit a one-year high in May and exports slowed.

Banks drove the market down, with Bank Central Asia and Bank Rakyat Indonesia falling over 4 percent and Bank Mandiri losing 3.7 percent.

The Thai market closed weaker after opening higher as foreigners sold again, with energy and banking shares leading the fall, top energy firm PTT falling 2 percent.

"The market took its lead from the weakness in U.S. futures and because foreign investors were on the sell side again this
morning," said Pichai Lertsupongkij, head of sales at Thanachart Securiti.

In Kuala Lumpur, transport company MISC BHD [] fell 1 percent. The Philippine index closed 0.2 percent weaker after hitting a two-week high during the session. Bucking the trend, Vietnam edged up 0.2 percent. - Reuters

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