SE Asian Stocks-Thailand hits 4-mth low, Vietnam rebounds

By Tan Wei Xin

SINGAPORE, June 12 (Reuters) - Most Southeast Asian markets
fell on Thursday on inflation worries and high oil prices,
weighing on firms such as Thailand's Bangkok Bank BBL.BK and
the Philippines' Meralco (MER.PS: Quote, Profile, Research).

But Vietnam .VNI, the world's worst performer so far this
year, edged 0.03 percent up -- its first gain after falling six
weeks in a row as investors bought stocks on the cheap.
[ID:nHAN275689]

"The index had a slight recovery today as investors were
encouraged by good sentiment from the Hanoi-based bourse. Many
thought it was the right time to buy in," said Bui Ngoc Long,
marketing director at International Royal Securities.

Vietnam's top fertiliser firm PVFCCo DPM.HM gained nearly
2 percent and property developer Vincom VIC.HM was up 1.3
percent.

Indonesian .JKSE shares managed to close 1.44 percent
higher as prices of commodities such as coal and nickel jumped.

But Thai .SETI stocks fell 0.28 percent to hit a
four-and-a-half-month low while Philippines .PSI was down
1.33 percent, taking its losses to nearly 30 percent this year.

Singapore's Straits Times Index .FTSTI fell 0.87 percent
and Kuala Lumpur edged 0.3 percent lower.

"There's a major selloff across the board. Lots of it was
oil driven and also inflation is not being properly contained,"
said Christoffer Moltke-Leth, head of sales trading of Saxo
Capital Markets.

"We are not out of the woodwork yet, and we still have more
downside to look forward to."

Oil prices CLc1 fell over a dollar a barrel, reversing
some of the previous session's gains that took crude close to
last week's peak, as a steep drop in U.S. inventories
heightened supply concerns. [O/R]

"Asian peripheral markets are most at risk, especially
where oil dependency is high and aggressive monetary tightening
is required to contain inflation," Chua Hak Bin, chief Asian
strategist at Deutsche Bank AG, said in a research note.

Chua added that Thailand and Philippines are among the
Asian markets more vulnerable to high oil prices.

The Philippines' largest power utility firm Meralco, which
relies on imported oil to generate electricity, fell 5 percent
to hit an 18-month low.

Food and beverage maker Universal Robina (URC.PS: Quote, Profile, Research) lost 3.9
percent while Jollibee Foods (JFC.PS: Quote, Profile, Research), Philippines' largest
fast food chain, added to the previous day's losses by sliding
2.6 percent to reach its lowest point in about 20 months.

In Thailand, top lender Bangkok Bank fell 0.85 percent to a
four-and-a-half-month low and Kasikornbank KBAN.BK was down
2.6 percent while Siam Commercial Bank SCB.BK closed 1.3
percent lower.

Singapore's Keppel Corp (KPLM.SI: Quote, Profile, Research), the world's largest
offshore oil rig-maker, fell 2.1 percent while bourse operator
Singapore Exchange (SGXL.SI: Quote, Profile, Research) was down 1.2 percent.

Malaysia's fourth largest lender RHB Capital (RHBC.KL: Quote, Profile, Research) was
down 3.4 percent to a three-month low and Hong Leong Bank
(HLBB.KL: Quote, Profile, Research) ended 2.5 percent down.

Gains in Jakarta were driven by commodities firms, with
Bumi Resources (BUMI.JK: Quote, Profile, Research) rising 6.2 percent and International
Nickel Indonesia (INCO.JK: Quote, Profile, Research) surging 10.8 percent, as nickel
prices rose 6 percent and South African coal hit a record high
[nTOPCE].
(Editing by Neil Chatterjee)