Major Southeast Asian stock markets fell on Thursday, with Singapore sliding to a two-month closing low and Malaysia extending losses to six-week lows, as worries about a looming budget crisis in the United States dented global sentiment. Singapore's Straits Times Index dropped 1 percent to the lowest close since September 10, reversing Wednesday's rise to two-week highs. Malaysia fell for a fifth session, edging down 0.3 percent to the lowest close since September 28.
After a lacklustre session, Bangkok's SET index fell for a third session, ending down 0.5 percent at a near two-week closing low and Jakarta's Composite Index was down 0.5 percent, ending two sessions of gains. Plantation stocks fell along with weaker Malaysian palm oil futures after broker Macquarie Research downgraded the plantation sector to 'underweight', reflecting weaker prospects for crude palm oil prices.
"We believe the market is currently pricing in a recovery in CPO prices that could eventually disappoint. Stocks are pricing in $1,060/t (RM3,300) for next year, while we forecast CPO prices to average $925/t in 2013," said its report dated November 7. The broker said it cut earnings estimates across the board for the sector and cut recommendations on shares such as Golden Agri-Resources and Genting Plantations, which fell 1.6 percent and 0.9 percent, respectively. Bucking the trend, the Philippine index was up 0.2 percent, led by a 4.2 percent jump in BDO Unibank Inc after the Philippines' largest lender by assets reported earlier in the week a nine-month net profit rise of 38 percent.