SE Asia Stocks: Weaker; global economy woes weigh
BANGKOK, June 21 – All Southeast Asian stock markets fell today, mostly led by commodities shares, on renewed global growth concerns after Chinese factory activity shrank for the eighth straight month.
Though the US central bank extended its programme of selling short-term securities and buying longer-dated ones as expected, it did not signal a more aggressive third round of quantitative easing, further disappointing some investors.
A survey of private sector activity in China compiled by HSBC showed its giant factory sector had shrunk for an eighth straight month in June on weaker demand for exports.
Thailand fell 1.2 per cent led by energy shares, Singapore ended 0.9 per cent weaker, dragged down by a 5.4 per cent fall in commodities firm Olam International Ltd, and the Philippines closed 0.7 per cent down.
Indonesia lost 1.2 per cent, though it saw US$2.5 million of foreign inflow, while Malaysia edged down 0.2 per cent despite enjoying US$31.99 million of net foreign buying today.
“The market was following the rest of the region with shares related to oil and coal coming down,” said Harry Su, head of research at Jakarta-based brokerage Bahana Securities, referring to the Indonesian market.
“We have been downgrading the prices of coal-related shares and that might have knock-on effect on the other shares as well.” – Reuters