SE Asia Stocks Mixed amid Fed stimulus concerns; Thai stocks fall after rate cut

Business & Markets 2013
Written by Reuters
Wednesday, 29 May 2013 18:50
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BANGKOK (May 29): Thai stocks pared early gains to fall on
Wednesday amid profit taking in recently-rallying bank and property
shares following an expected interest rate cut while concerns that the
U.S. Federal Reserve could reduce monetary stimulus weighed on the
region.
The Thai main SET index was down 1.1 percent at 1,601.61 after the
country's central bank cut its benchmark interest rate by 25 basis points
as expected.
Macquarie Equities Research said the Thai stock market looked
expensive at 14 times forward price-to-earnings, based on
its coverage of 71 listed companies. But the broker maintained its
'neutral' rating on the market.
"... The multiples are still underpinned by what we view as robust
earnings growth, and while there are other factors to
consider, most notably policy risks, these still appear as risks rather
than realities," it said in a report dated May 28.
Philippine shares outperformed the region, with the main index up 1.6
percent at 7,228.57.
The index had risen a modest 0.2 percent on Tuesday on bargain
hunting after a nearly 4 percent drop over the past
three sessions as weak global sentiment prompted selling in Southeast
Asia's second-best performer.