SE Asia Stocks-Fall after hawkish Fed minutes
* Singapore slips, real estate stocks top losers
* Indonesia retreats from two-week closing high
By Rashmi Ashok
Oct 18 (Reuters) - Southeast Asian stock markets fell on
Thursday, in line with broader Asia after minutes from the U.S.
Federal Reserve's September meeting affirmed expectations that
the central bank is likely to continue raising interest rates
this year.
Despite U.S. President Donald Trump's criticism, all Fed
policymakers backed raising interest rates last month and also
generally agreed borrowing costs were set to rise further.
"A slightly more hawkish tone in the FOMC (Federal Open
Market Committee) September minutes, which prompted the 10-year
UST bond yield higher... may also dampen any near-term
enthusiasm for extending the Asian equity rally for now," OCBC
analysts said in a note.
Singapore shares edged lower, dragged mainly by real
estate stocks after the city-state announced stricter guidelines
on the maximum number of units in new blocks of private flats
and condominiums in a move to tackle what authorities have
called "excessive development of shoebox units".
"It's a knee-jerk reaction because markets were not
expecting another set of cooling measures so soon," said Joel
Ng, an analyst with KGI Securities.
The new rules will lead to a fall in prices which will eat
into developers' margins, he said, adding that, "There really is
no reason for holding developers at this point given the
potential headwinds going forward."
Sector heavyweight City Developments Ltd fell 2.3
percent, while UOL Group Ltd declined 2.2 percent.
Philippine stocks were marginally lower after
shedding as much as 0.6 percent earlier in the day.
Real estate and financial stocks were the biggest losers.
Conglomerate Ayala Corp fell 0.9 percent and
Metropolitan Bank & Trust Company shed 0.7 percent.
Indonesian shares fell from a two-week closing high
hit in the previous session. Banks were top losers followed by
telecom stocks. PT Bank Central Asia Tbk shed 1.3
percent, while PT Telekomunikasi Indonesia Tbk
declined 2 percent.
Malaysian stocks edged lower with Petronas Gas Bhd
losing 1.2 percent and investment holding company Sime
Darby Bhd down 1.2 percent.
Thai shares slipped up to 0.5 percent, dragged by
banking and energy stocks.
For Asian Companies click;
SOUTHEAST ASIAN STOCK MARKETS AS AT 0415 GMT
Market Current Previous close Pct Move
Singapore 3069.05 3071.1 -0.07
Bangkok 1688.53 1695.04 -0.38
Manila 7093.83 7099.68 -0.08
Jakarta 5835.837 5868.62 -0.56
Kuala Lumpur 1737.72 1740.59 -0.16
Ho Chi Minh 967.07 971.6 -0.47
Change on year
Market Current End 2017 Pct Move
Singapore 3069.05 3402.92 -9.81
Bangkok 1688.53 1753.71 -3.72
Manila 7093.83 8558.42 -17.11
Jakarta 5835.837 6355.654 -8.18
Kuala Lumpur 1737.72 1796.81 -3.29
Ho Chi Minh 967.07 984.24 -1.74
(Reporting by Rashmi Ashok; Editing by Subhranshu Sahu)
