SE Asia Stocks Mostly down; Malaysia down ahead of election

by **Cals** Sat 04 May 2013, 13:44

SE Asia Stocks Mostly down; Malaysia down ahead of election
Business & Markets 2013
Written by Reuters
Friday, 03 May 2013 19:43

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(May 3): Most Southeast Asian stocks fell on Friday, with Malaysia hitting a more than three-week low as investors sold shares on uncertainty over the outcome of the country's national elections, while a rating downgrade dragged Indonesian shares down.

Investor sentiment on risky assets improved after the European Central Bank cut interest rates to a record low on Thursday, but the region's markets mostly fell on domestic factors ahead of monthly U.S. jobs data release.

Malaysia dropped 1.1 percent to its lowest close since April 9 with a foreign outflow of $30.05 million, which analysts attributed to the concerns over national elections on Sunday.

Investors have "suddenly become fearful" that the ruling coalition may lose the poll, said Ang Kok Heng, chief investment officer at Kuala Lumpur-based Phillip Capital Management Sdn Bhd.

"If they didn't sell (today), they are afraid the market will be lower on Monday. They suddenly think this time the election is going to be bad."

Indonesia fell 1.4 percent to a near three-week low, a day after Standard & Poor's downgraded the country's sovereign credit rating outlook to "stable" from "positive", citing concerns over stalling reforms.

Singapore fell 1 percent, easing from a five-year high hit in the previous session, with casino operator Genting Singapore PLC declining 7.8 percent after reporting disappointing quarterly earnings on Thursday.

Thailand closed 0.6 percent weaker on profit-taking amid concerns over the moves by the country's central bank and finance ministry to curb a weakening baht, analysts said.

Bucking the trend, the Philippine stock index, the region's best performer so far this year, hit a record high of 7,230.40 before closing at 7,215.35 with a gain of 1.7 percent, a day after Standard & Poor's raised the country's credit rating to investment grade.

Vietnam gained 0.5 percent as investors bought blue chips expecting interest rate cuts, analysts said.