Malaysian stock index hits near three-year low; oil shares fall
BANGKOK, Aug 14 — Most Southeast Asian stock markets fell today, with the Malaysian stock index hitting a near 3-year low as a weakening ringgit and tumbling global oil prices prompted investors to cut holdings in regional energy shares.
The Kuala Lumpur composite index was down nearly 2 per cent, its lowest since November 2012. Shares of oil and gas services firm Sapurakencana Petroleum Bhd and electricity utility Tenaga Nasional Bhd topped losers.
The index is poised for a weekly loss of 5.4 per cent, the worst since October 2008 as the ringgit marked a fresh pre-peg 17-year low, with a fall in oil prices increasing concerns about the country’s exports.
Large-cap energy shares in the region such as PTT Exploration and Production Pcl and Aboitiz Power Corp , were among the biggest percentage losers as US crude oil prices fell below US$42 (RM171.25) a barrel today.
In Indonesia, shares turned weaker after a rebound yesterday, while the Philippines eased after its central bank decided late yesterday to keep its benchmark interest rate unchanged.
Vietnam edged down 0.62 per cent at the break, with most blue chips losing ground after the central bank widened its currency trading band.
Singapore advanced for a second day as bargain hunting continued. In Bangkok, the broader SET index edged slightly higher after a fifth straight fall yesterday.
“There is no catalyst to drive the market up today. The latest US data again supports the view the Fed could raise interest rates, which does not bode well for market sentiment,” broker Asian Wealth Securities in Bangkok said in a report.
All Southeast Asian stock indexes are set to post losses on the week as the yuan devaluation hit regional currencies, with Indonesia‘s Jakarta composite index heading for a 4.2 per cent drop, the second worst after Malaysia. — Reuters
