By Geo Tharappel
Dec 19 Southeast Asian stock markets closed
lower on Monday, as talk of a more hawkish pace of rate
increases by the U.S. Federal Reserve in 2017 spurred a sell-off
in risk assets.
Federal Reserve Bank of Richmond President Jeffrey Lacker
said on Friday that interest rates will likely need to be raised
more than three times next year.
Lacker, who did not have a vote but participated in the
Fed's policy meetings this year, said the Fed would still be
able to raise rates gradually, but perhaps not as slowly as is
expected by the majority of policymakers. The Fed raised rates
only once in 2016, which followed a single rate hike last
"Investors are rationalising their exposure on equities...a
more hawkish path of interest rate hikes is negative on
equities," said Ralph Bodollo, an equity research analyst with
Manila-based RCBC Securities.
Philippine shares slumped 2 percent to a more than
nine-month low, battered by financials and real estate stocks.
Property developer SM Prime Holdings Inc shed 5.6
percent, while Bank of the Philippine Islands hit a
nine-month closing low.
The slowing down of remittances by overseas Filipino
workers, which is a key driver of the Philippine economy, is
also a concern for the Philippine stock market, Bodollo said.
Indonesia snapped early gains to close 0.8 percent
lower, led by consumer staples and materials sectors.
Cigarette maker Gudang Garam Tbk PT fell 2.5
percent, while Indocement Tunggal Prakarsa Tbk PT lost
Singapore stocks fell 0.8 percent to their lowest
since Dec. 1, dragged down by financials and telecom stocks.
Top lender DBS Group Holdings Ltd and Singapore
Telecommunications Ltd were among the worst
Vietnam slipped into negative territory after rising
in early trade, while Thailand was flat at the close of
In Asia, MSCI's broadest index of Asia-Pacific shares
outside Japan was down 0.5 percent as of 1002
For Asian Companies click;
SOUTHEAST ASIAN STOCK MARKETS
Change on day
Market Current prev close Pct Move
Singapore 2913.08 2937.86 -0.84
Bangkok 1522.4 1522.51 -0.01
Manila 6714.13 6850.71 -1.99
Jakarta 5191.912 5231.652 -0.76
Kuala Lumpur 1634.3 1637.79 -0.21
Ho Chi Minh 674.33 675.16 -0.12
Change this year
Market Current End 2015 Pct Move
Singapore 2913.08 2882.73 1.05
Bangkok 1522.4 1288.02 18.20
Manila 6714.13 6952.08 -3.42
Jakarta 5191.912 4593.008 13.04
Kuala Lumpur 1634.3 1692.51 -3.44
Ho Chi Minh 674.33 579.03 16.46
(Reporting by Geo Tharappel in Bengaluru; Editing by xxxx)