Southeast Asian stocks ended mostly lower on Monday as worries about the impact of high oil prices on profit margins prompted investors to cash in on recent gains. Singapore's Straits Times Index ended down 0.7 percent, after Friday's climb to a seven-month high amid upbeat corporate earnings, while the Philippine index fell 0.4 percent after hitting a record high of 5145.89 points in the previous session.
--- Tesco's fund makes strong Bangkok debut
--- New central bank rule weighs Indonesia
Jakarta's Composite Index inched down 0.09 percent, with banks and property stocks under pressure after the central bank said on Friday it would limit the size of housing loans to prevent price bubbles and excessive lending in Southeast Asia's largest economy. Thai shares erased early gains to end flat, after climbing at one point to 1,201.61, the highest since July 15, 1996.
Malaysia inched up 0.14 percent in a choppy session, while the Ho Chi Minh Stock Exchange's VN Index edged down 0.1 percent. "We see a little bit of concern about rising oil prices. It's also profit taking across region after recent gains," said Bangkok-based strategist Teerada Charnyingyong of broker Phillip Securities. Brent crude was steady near $126 a barrel on Monday, with prices suported by continued concerns over potential supply disruptions from Iran and the prospect of a stronger US economy lifting oil demand.
Among losing stocks in the region, Indonesian auto distributor PT Astra International Tbk fell 0.7 percent after Bank Indonesia announced the new credit curbs, which included restriction on auto loans. "The new regulation on loan-to-value ratios will lower automotive sales by 10-25 percent in forecast 2012, in our view. Motorcycle sales will be the most impacted and are likely to see structurally lower growth," said Wilianto le of Nomura Asia Pacific Research.
Malaysia's biggest lender, Maybank, fell nearly 1 percent after a combined 1.8 percent gain in past four sessions. Manila's top listed firm Philippine Long Distance Telephone Co fell 1.7 percent, reversing its 1.5 percent rise on Friday. In Bangkok, the biggest bank Bangkok Bank Pcl climbed 2.4 percent, extending its 3.3 percent gain of past two sessions, after CLSA said the stock was one of its top 13 regional plays.
The property fund of Tesco's Thai unit jumped almost 11 percent in its trading debut as investors who were shut out of Thailand's largest IPO in six years scrambled to get a piece of the high-yielding security. Tesco Lotus Retail Growth Freehold and Leasehold Property Fund's units closed at 11.40 baht, off the day's high of 11.50 baht. The IPO price was 10.40 baht.
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