SE Asia Stocks-Most pull back amid euro zone debt concerns

BANGKOK (Nov 15):- Most Southeast Asian stock markets drifted lower on Tuesday as players cashed in quick gains in commodities-related stocks, with lingering euro zone debt concerns denting sentiment across the region.

Short-term traders dominated light market trading while long-term investors nibbled on stocks with good earnings potential and dividends, supported by strong domestic demand. Trade would remain choppy in the near term due to doubts about the debt situation in Europe, brokers said.

"What's happening in Europe will continue to dictate market performance everywhere ... There's still a lot of problems in Europe. It's difficult to believe that things will be quickly solved," said Harry Su, head of research at Bahana Securities in Jakarta.

Jakarta's Composite Index eased 0.5 percent to 3,813.84, reversing part of Monday's 1.4 percent climb. The market's positive fundamentals should warrant some gains, with Su seeing a target for the index in 2011 at 4,000 and a 2012 target of 4,650.

Singapore fell 0.7 percent, Malaysia edged down 0.1 percent and Vietnam fell 1 percent while stocks in Thailand and the Philippines edged up 0.1 percent and 0.16 percent respectively.

Asian shares in general fell on Tuesday as a rise in euro zone bond yields reflected lingering doubts about the ability of politicians in Italy and Greece to push through painful reforms to resolve their debt crises and win market confidence. MSCI's broadest index of Asia Pacific shares outside Japan fell 1 percent as of 0907 GMT.

The global uncertainty kept investors in most countries on the sidelines, with turnover in Singapore and Indonesia around half their monthly average. Palm oil shares were among losers in the region due to lower Malaysian palm oil futures. Singapore-listed Noble Group and Malaysia's IOI CORPORATION BHD [] each fell more than 1 percent after Monday's gains of more than 2 percent.

In Singapore, budget carrier Tiger Airways dropped nearly 3 percent after it warned of a significant net loss for the fiscal year ending March 2012. Bright spots in the region were telecom stocks that were expected to pay out good dividends.

Top Thai mobile phone firm Advanced Info Service Pcl rose 2.2 percent and Malaysia's DIGI.COM BHD [] gained 1.63 percent.

Fund flows were mixed. Malaysia reported 10.95 million ringgit ($3.5 million) in outflows while the Philippines and Indonesia had $13.3 million and $0.5 million in inflows respectively, Thomson Reuters and stock exchange data showed. - Reuters