Southeast Asian stock markets fell sharply on Thursday with Indonesia registering its biggest daily fall in over a year as financials and consumer staples slipped, while Singapore shares marked their lowest close in a week. Indonesian shares, down 1.8 percent, recorded their biggest intraday percentage drop since Nov 2016. The index lost 0.9 percent this month. Bank Central Asia Tbk PT, down 3.9 percent at its lowest in a month, was the biggest drag.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.6 percent after US technology stocks posted steep losses overnight, as investors shifted to financials and other sectors that could potentially benefit from lower regulation and taxes, as well as higher interest rates. Singapore shares fell 0.2 percent to their lowest in a week as losses in industrials were partially offset by gains in financials and real estate stocks, but were up 1.8 percent on month.
"SIBOR spiked up late, suggesting a liquidity crunch. Moreover, the MAS has stepped forward to warn of excessive exuberance in the property market. These headlines have dragged on sentiment and on the market" said Liu Jinshu, director of research at NRA Capital in Singapore.
Malaysian stocks retreated 0.15 percent as losses in consumer discretionary and financial stocks outweighed gains in Sime Darby Bhd, which rose 27 percent, after the company's plantation and property units debuted on the exchange. The index is down 1.7 percent for the month. Thai shares fell 0.5 percent as economic data suggested recovery in Southeast Asia's second-largest economy is still patchy. Financial markets in the Philippines were closed for a public holiday.
Comments
Comments are closed.