Most Asian stocks low, S'pore at two-year low
Sunday, 28 September 2008
SINGAPORE, Sept 27: Most Southeast Asian stock markets fell Friday as investors fretted over a stalemate on the US government's planned US$700 billion bailout for the financial industry, pushing down property plays in Singapore.
Washington's failure to agree to a bailout plan sent global stocks sliding and weakened the dollar. Singapore's benchmark stock index fell 1.30 per cent to its lowest close since August 2006, and is down 5.80 per cent for the week. Indonesia dropped 1.30 per cent on banks and resources, while Malaysia and Thailand edged 0.40 per cent down.
"The market's rather directionless. No one wants to take a position," said a Singapore dealer. "The other regional markets aren't doing too well either." Hong Kong's Hang Seng fell 1.30 per cent, while Japan's Nikkei dropped 0.90 per cent.
Southeast Asia's largest telecom, SingTel, ended down 0.30 per cent, and fell 10 per cent in the week, after analyst downgrades.
After the close, regulators said SingTel won a bid to build the city-state's planned ultra high-speed broadband network, leading a consortium that includes Singapore Press Holdings, which closed flat.
CapitaLand, Southeast Asia's largest developer, lost 5.0 per cent, and was down 17 per cent for the week, while rival Keppel Land ended down 3.30 per cent Friday.
In Jakarta, Bank International Indonesia plunged by more than a third after Malaysia's central bank told state-owned Maybank to renegotiate its $2.7 billion bid for BII, in a twist that analysts said could kill the deal.
The Philippine index, added 1.20 per cent, and Vietnam gained 2.80 per cent on Friday and 10 per cent for the week.
Vietnam will raise the interest rate it pays on banks' compulsory reserves against their dong deposits for the second time this year.
"This suggests the government would not loosen monetary policy and will be persistent with measures to rein in inflation," said economist Tong Minh Tuan at Bao Viet Securities.
Analysts said Asian markets will remain volatile and stability will hinge on how the US bailout plan, if implemented, will work.
"We have yet to see how the relief program will work. Further difficulties among banks and other financials are probable (as the failure of Washington Mutual has indicated," said Shane Oliver, head of investment strategy at AMP Capital.
Washington's failure to agree to a bailout plan sent global stocks sliding and weakened the dollar. Singapore's benchmark stock index fell 1.30 per cent to its lowest close since August 2006, and is down 5.80 per cent for the week. Indonesia dropped 1.30 per cent on banks and resources, while Malaysia and Thailand edged 0.40 per cent down.
"The market's rather directionless. No one wants to take a position," said a Singapore dealer. "The other regional markets aren't doing too well either." Hong Kong's Hang Seng fell 1.30 per cent, while Japan's Nikkei dropped 0.90 per cent.
Southeast Asia's largest telecom, SingTel, ended down 0.30 per cent, and fell 10 per cent in the week, after analyst downgrades.
After the close, regulators said SingTel won a bid to build the city-state's planned ultra high-speed broadband network, leading a consortium that includes Singapore Press Holdings, which closed flat.
CapitaLand, Southeast Asia's largest developer, lost 5.0 per cent, and was down 17 per cent for the week, while rival Keppel Land ended down 3.30 per cent Friday.
In Jakarta, Bank International Indonesia plunged by more than a third after Malaysia's central bank told state-owned Maybank to renegotiate its $2.7 billion bid for BII, in a twist that analysts said could kill the deal.
The Philippine index, added 1.20 per cent, and Vietnam gained 2.80 per cent on Friday and 10 per cent for the week.
Vietnam will raise the interest rate it pays on banks' compulsory reserves against their dong deposits for the second time this year.
"This suggests the government would not loosen monetary policy and will be persistent with measures to rein in inflation," said economist Tong Minh Tuan at Bao Viet Securities.
Analysts said Asian markets will remain volatile and stability will hinge on how the US bailout plan, if implemented, will work.
"We have yet to see how the relief program will work. Further difficulties among banks and other financials are probable (as the failure of Washington Mutual has indicated," said Shane Oliver, head of investment strategy at AMP Capital.