SE Asian Stocks-Oil-related plays lead gain

By Tan Wei Xin

SINGAPORE, June 6 (Reuters) - Most Southeast Asian stock
markets rose on Friday, after a rebound in oil prices boosted
firms such as Malaysia's Sime Darby (SIME.KL) and Singapore's
rig-maker Keppel Corp (KPLM.SI).

Singapore's benchmark Straits Times Index .FTSTI edged up
0.1 percent, while Malaysian .KLSE stocks rose 2.0 percent to
recover from Thursday's two-month low, which was sparked by
inflation and political worries.

"Shares are likely to remain volatile and under pressure in
the short term," Shane Oliver, head of investment strategy and
chief economist at fund firm AMP Capital, said in a note on
global markets.

"The May to October period is often difficult for shares
and the full economic fallout from the U.S. housing slump,
credit crunch and high oil prices along with rising inflation
is yet to be seen."

Thai .SETI stocks gained 0.9 percent and Indonesia
.JKSE inched 0.11 percent higher while Philippines .PSI was
up 0.78 percent. Vietnam .VNI, the world's worst performing
stock market so far this year, fell 1.5 percent.

Oil rose by more than $1 towards $129 a barrel on Friday,
extending gains after its biggest ever one-day rise in the
previous session. The gains came after a weakened U.S. dollar
on signals the European Central bank may raise interest rates
this year.

Malaysia's planters tracked the rise in oil prices, a day
after shares fell on worries that a windfall tax in July could
shave palm oil stock's earnings by up to 14 percent.

Sime Darby rose 2.3 percent while IOI Corp (IOIB.KL) gained
1.4 percent.

"Negative concerns about the new tax have disappeared and
shares should outperform. The knee-jerk broad market sell-down
provides excellent opportunity to buy," BNP Paribas analysts
said in a note.

Power distributor Tenaga Nasional (TENA.KL) surged 23
percent, a day after the company increased tariffs as part of
the Malaysian government's revamp of energy prices, which
improves the firm's ability to pass on fuel costs.

"The recent tariff review suggests the government is
serious about addressing pricing distortion and moving away
from the subsidy regime," Deutsche Bank analyst Aun-Ling Chia
said.

"A blue sky for Tenaga is another tariff review in 2009,
assuming the government cuts the gas price subsidy further."

RIG BUILDERS

Singapore's Keppel Corp (KPLM.SI), the world's largest
offshore oil-drilling rigs builder, rose 1.5 percent after a
fresh order to build two jackup rigs from Norway's SeaDrill Ltd
(SDRL.OL) for $420 million.

Rival Sembcorp Marine (SCMN.SI) also won a contract from
SeaDrill worth $430 million, but eased 0.9 percent after Credit
Suisse downgraded its stock to "neutral" from "outperform",
saying its share price performance has peaked.

Strengthening oil prices also pushed up Thailand's top oil
and gas firm PTT PCL PTT.BK by 1.8 percent and its unit PTT
Exploration and Production PTTE.BK rose 3.4 percent.

In Indonesia, coal mining firm Bumi Resources (BUMI.JK)
rose 2.6 percent and led gains while Bukit Asam (PTBA.JK) ended
7.8 percent higher.
(Editing by Anshuman Daga)