Stocks in the Philippines slid on Thursday as investors trimmed holdings in interest rate-sensitive stocks before the central bank's decision on interest rates, while shares in Indonesia retreated from a one-week high after late selling. The Philippine main index finished down 0.5 percent at 6,315.69, the lowest since February 25. Shares of Metropolitan Bank & Trust Co and Robinsons Land Corp were among underperformers.
The Philippine central bank kept its overnight borrowing rate at a record low of 3.5 percent for the eleventh straight meeting, as expected. It raised banks' reserve requirement ratio 1 percentage point. The interest rate decision came after the stock market close. Indonesia's main index closed down 0.1 percent amid selling in recent gainers. Bank Danamon Indonesia shares dropped 3.6 percent after a rise early in the week and were among the top losers.
Dividend-yielding stocks outperformed, led by a 2 percent gain in shares of Perusahaan Gas Negara amid expectations of its strong dividend payouts. Thai shares snapped two days of gains, ending down 0.3 percent. Large caps which rallied early in the week on institutional-led buying mostly fell, including Siam Commercial Bank and Advanced Info Service.