By Geo Tharappel
Dec 19 Most Southeast Asian stock markets
dropped on Monday as investors pared their equity holdings
following hawkish comments from the U.S. Federal Reserve on
interest rate hikes last week.
Richmond Fed President Jeffrey Lacker said on Friday that
the U.S. central bank will likely need to raise interest rates
more than three times next year.
"Investors are rationalising their exposure on equities...
In general, a more hawkish path of interest rate hikes is
negative on equities," said Ralph Bodollo, an equity research
analyst with Manila-based RCBC Securities.
The U.S. dollar and bond yields have hit multi-year highs
after the Fed decision, stoking fears of outflows from emerging
MSCI's broadest index of Asia-Pacific shares outside Japan
hit a four-week low and last stood down 0.1
Among Southeast Asian markets, the Philippines fell
as much as 1 percent to its lowest in almost two weeks with
financial and industrial stocks leading the decline.
Bank of the Philippine Islands and property
developer SM Prime Holdings Inc were the top drags,
falling over 2 percent each.
Consumer cyclical stocks also weighed on the index with
quick-service restaurants operator Jollibee Foods Corp
falling up to 2.3 percent to its lowest in nearly 11 months.
"There is no evidence that consumer spending will slow down
in the holiday season... The concern is more on the slowing down
of overseas Filipino workers' (OFWs) remittances," said Bodollo.
Singapore stocks declined as much as 0.9 percent to
their lowest since Dec. 1, dragged down by financial and telecom
Top lender DBS Group Holdings Ltd dropped up to 2
percent, while Singapore Telecommunications Ltd fell
as much as 1.9 percent to its lowest in almost a month.
Indonesian shares pared early gains to trade flat.
A state research firm from the world's biggest producer of
palm oil said it expected palm oil production to drop 2.3
percent in 2016.
Vietnam bucked the trend, extending gains into a
fourth session, boosted by banking stocks, while Thai shares
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SOUTHEAST ASIAN STOCK MARKETS: Change at 0450 GMT
Market Current prev close Pct Move
Singapore 2917.71 2937.86 -0.69
Bangkok 1523.51 1522.51 0.07
Manila 6789.66 6850.71 -0.89
Jakarta 5229.904 5231.652 -0.03
Kuala Lumpur 1635.25 1637.79 -0.16
Ho Chi Minh 678.57 675.16 0.51
Change this year
Market Current End 2015 Pct Move
Singapore 2917.71 2882.73 1.21
Bangkok 1523.51 1288.02 18.28
Manila 6789.66 6952.08 -2.34
Jakarta 5229.904 4593.008 13.87
Kuala Lumpur 1635.25 1692.51 -3.38
Ho Chi Minh 678.57 579.03 17.19
(Reporting by Geo Tharappel in Bengaluru; Editing by Subhranshu