Southeast Asian markets: Thai shares snap two-day rising streak; Indonesia down

Thai stocks retreated on Monday as investors sold construction shares amid concerns about project delays, while Indonesia's benchmark index fell to one-month low as selling in large caps weighed on one of Southeast Asia's top performers this year. Losses in Bangkok were led by shares of the biggest builder Italian Thai Development, which came under selling pressure after reports that the military government was freezing water projects which its group was working on.
Italian Thai shares ended down 6.1 percent, their worst drop since January. The broader SET index edged down 0.05 percent, snapping a two-session winning streak. Shares of telecommunications group True Corp were suspended from trading, pending an announcement. A source with knowledge of the deal said True Corp is to offer an 18 percent stake to China Mobile via a private placement as part of its plans to take on a foreign partner to help with regional expansion.
Jakarta's composite index fell 1.1 percent to 4,885.08, the lowest close since May 8, amid active selling in banking shares such as Bank Rakyat Indonesia and other large-caps such as Telekommunikasi Indonesia. The loss trimmed its year-to-date gain to 14.3 percent, Southeast Asia's second-best performing bourse after the Philippines which rose 15.5 percent, the region's best performer.
In a report, Morgan Stanley said it continued to recommend Singapore over Indonesia over Thailand. Morgan Stanley said it continued to prefer global cyclicals over domestic consumption stocks and investors would likely do well by positioning their portfolios defensively. "ASEAN3 equity markets are interestingly perched in search of direction. We see limited upside with relatively full valuations, rising risks and slowing growth," it said in a report. Singapore's Straits Times Index edged a tad higher, closing at the highest in more than one year. Stocks in Malaysia, the Philippines and Vietnam rose after US and China data pointed to global recovery.