SINGAPORE, Feb 9 – Southeast Asian stock markets were mostly little changed to weaker today as investors cashed in on recent gains, with Indonesia clawing back some early losses after the central bank unexpectedly cut interest rates to help spur economic growth.
Short-term traders appeared to dominate the market, with concerns about Greece’s ability to secure fresh international aid keeping many investors on the sidelines, despite expectations that the Bank of England and the European Central Bank will continue to provide ample liquidity, which has fuelled a move back into riskier assets so far in 2012.
“Markets are still very much hopeful for Greek issues. If it comes out positively, it will probably provide some risk-on appetite in the near term,” said Warut Siwasariyanon, head of research at Finansia Syrus Securities in Bangkok.
Still, cautious investors took profits on blue chips such as Philippine banks, Singapore commodities firms and Indonesia consumer stocks which had led recent run-ups in the region.
The Philippine stock market fell 0.75 per cent to around a one-week low, reversing yesterday’s 1.05 per cent climb after hitting a record high earlier in the week.
Jakarta’s Composite Index ended down 0.2 per cent, after falling nearly 1 per cent at one point, amid late selective buying of consumer and banking shares.
Indonesia’s central bank unexpectedly cut its policy rate by 25 basis points to a record low 5.75 per cent today, helping cheer investors.
“It’s great that BI rate has cut again. It makes stock and long-tenure bonds more attractive for investors,” said Herbie Mohede, fixed income portfolio manager at Samuel Sekuritas in Jakarta.
Singapore’s Straits Times Index ended nearly unchanged, after losing 0.84 per cent early in the session.
Thailand’s SET index inched up 0.1 per cent.
Malaysian shares reversed early losses, edging up 0.8 per cent to the highest in more than six months. Kuala Lumpur largely played catch-up with gains in the region early in the week when it was shut for market holidays.
Vietnam’s main index was up 0.5 per cent.
Among losing stocks, Singapore-listed commodity firm Olam International Ltd fell 1.5 per cent and Philippine Metropolitan Bank and Trust Co dropped almost 3 per cent.
Indonesia’s PT Astra International Tbk, the country’s leading motorcycle dealer, fell 2.5 per cent, while PT Bank Internasional Indonesia Tbk was up 0.7 per cent.
In Singapore, strong gains in property developers such as CapitaLand Ltd helped offset losses in other sectors.
CapitaLand, Southeast Asia’s largest property developer, was 3.5 per cent higher and Hongkong Land Holdings Ltd rose 3.94 per cent. – Reuters
