SE Asia Stocks Weak globals knock region off highs; Philippine lags

Business & Markets 2013
Written by Reuters
Monday, 27 May 2013 18:34
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BANGKOK (May 27): Philippine shares suffered their biggest one-day
drop since June 2012 on Monday while major Southeast Asian stock
markets edged lower as investors, wary of weak global outlook, further
sold the recently-rallying region.
The Philippine main index finished down 2.4 percent at a one-month low
of 7,097.51, extending last week's 2.4 percent fall. Despite the sell-off,
it was still up 22.1 percent year-to-date, Asia's fifth best.
"Fundamentally, nothing has changed. Recent credit ratings upgrades
have well backed up the market. The heavy selling was due to weak
external sentiment and Philippine stocks were the target of profit
taking," said a Manila-based equities trader.
Among underperformers on the day, Jakarta's Composite Index slid 1.4
percent to 5,085.13, the lowest close in more than one week.
Bangkok's SET index was down 0.9 percent at 1,593.10, coming off the
key 1,600 level.
Investors had expected the SET index to rise to 1,700 later this year,
according to Thailand's government pension fund.
"Over the next two to three years, global economy may recover slowly
and equities returns should still be positive ... if SET index hits 1,700,
there may be some correction," Sopawadee Lertmanaschai, the fund's
secretary-general told reporters.