Southeast Asian stock markets ended mostly lower on Wednesday, with Singapore edging down to the lowest close in three weeks while Vietnam extended losses for a second day, pointing to further weakness ahead amid concerns about the bank sector's arrest. The Ho Chi Minh Stock Exchange's VN Index fell 1.6 percent in strong volume, ending at 410.23, the lowest close since July 12. It dropped 4.67 percent on Tuesday, the biggest daily loss since late 2008.
Shares in Vietnamese banks fell further on Wednesday after the arrest of a high-profile Vietnamese banker, who could be jailed for up to two years, according to a newspaper run by the police ministry. The news spurred credit fears and would keep the market range-bound in the near term, brokers said. "Everything has changed briefly after news emerged of the arrest of Nguyen Duc Kien, multi-millionaire founder of Asia Commercial Bank. Investors have become worried and defensive," said Quach Manh Hao, deputy director of Military Bank Securities Co. The Philippines fell 1.1 percent to a one-month closing low. Manila reopened after a market holiday since Monday. Bucking the trend, Malaysia edged up 0.15 percent on resuming trade after a market holiday.
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