SOUTHEAST ASIA STOCKS: More risk-off selling on China, Greece

BANGKOK – Southeast Asian stock markets mostly fell on Thursday as instability in Greece and China fuelled more risk-off selling, sending the Indonesian benchmark to a more-than-14-month low and the Philippine key index to its lowest level in 2015.

 

Jakarta's composite index traded down 1.1 percent, extending its loss for a fourth straight day to the lowest level since April 29, 2014. Foreign selling hit large-caps, with Bank Mandiri, the most actively traded, down 1 percent. 

 

Share sales appeared to pick up pace after a downbeat economic view. The central bank governor said on Wednesday that Indonesia's economy is not likely to see an acceleration in growth in the second quarter of this year. 

 

The Philippine index extended its slide into a fifth straight day, down 0.7 percent at 7,312.46, a level last hit on Jan. 6. Shares of SM Investments Corp. and San Miguel Corp. each dropped almost 2 percent.

 

Selling in Singapore and Thailand both came at a smaller pace while Malaysia and Vietnam staged a mild rebound.

 

Brokers in the region expect market consolidation in the near term. Singapore-based NRA Capital said market breadth in Singapore improved through the session and was slightly positive while brokers in Bangkok saw external factors dominating sentiment.

 

"We expect the SET to adjust down today, as local positives are outweighed by concerns over the hemorrhaging Chinese stock market," strategists at broker Asia Wealth Securities wrote in a report.

 

An index of Asian shares reversed course and rose on Thursday as a slide in battered Chinese stocks was stemmed, at least temporarily, while the safe-haven yen was nudged off highs scaled against the dollar. 

 

Shares in Indonesian mining firms were top losers on MSCI's index of Southeast Asia. Adaro Energy dropped 6.1 percent, the biggest percentage fall, followed by Bukit Asam which was down 6 percent, the second worst performer. – Reuters