SE Asian Stocks-Thai stocks at 19-mth low as politics worsen

* Thai stocks at 19-mth low as political crisis deepens

* Oil price drop drags Malaysian planters, Indonesia

* Singapore gains on property, bank shares

By Yvonne Cheong

SINGAPORE, Sept 2 (Reuters) - Thai shares slid to their
lowest in 19 months on Tuesday as investors sold financial and
property shares amid a worsening political crisis, while a drop
in oil prices weighed on Malaysia and Indonesia.

Emerging market stocks .MSCIEF fell to their lowest level
since March 2007 as political and economic concerns intensified
in Thailand after Prime Minister Samak Sundaravej declared a
state of emergency. [nBKK69595]

Analysts expect further near-term volatility and warned
that foreign investors would probably stay away until the
year-end.

"We're probably at the peak of political risk so it's
natural to expect the market to be really bad. It probably
means we'd be getting closer to some resolution," said Andrew
Stotz, head of research at CLSA Securities in Bangkok.

"The bad news is that there is not some great upside story
about Thailand right now."

Thailand's benchmark index .SETI dropped 2.3 percent and
has lost 23 percent this year. Malaysia .KLSE fell 1.2
percent as palm oil futures weakened, while Indonesia .JKSE
eased 0.3 percent. [nJA201338]

Singapore .FTSTI gained 1.7 percent on property and
banks, closing at its highest in two weeks, while the
Philippines market .PSI rose 0.8 percent.

Top Thai lender Bangkok Bank BBL.BK fell 3.4 percent,
while the country's largest developer Land & House LH.BK
tumbled 3.9 percent.

Oil prices CLc1 dropped nearly $10 a barrel to below $107
as Hurricane Gustav weakened, and helped ease inflation and
cost concerns for some companies.

Singapore property heavyweight CapitaLand (CATL.SI) rose
4.5 percent, while rival City Developments (CTDM.SI) gained 3
percent.

Lenders UOB (UOBH.SI) and OCBC (OCBC.SI) rose 1.8 and 1.9
percent, while top-ranked bank DBS (DBSM.SI) added 1.1 percent.

Falling oil prices, however, weighed on resource-heavy
Indonesia, as commodity stocks such as top coal producer Bumi
Resources (BUMI.JK) fell 4.7 percent.

"Further correction is possible. But the support might come
from banking shares and infrastructure stocks like
telecommunications," said John Teja, head of equities sales at
Ciptadana Securities in Jakarta.

Third-ranked lender BRI (BBRI.JK) rose 5 percent.
(Additional reporting by Harry Suhartono, Editing by Ian
Geoghegan)