SE Asian Stocks-Slide on global fears, Singapore at 4-½ yr low

* Singapore set to mark worst month in history

* Banks battered over renewed credit worries

* Malaysia maintains regional outperformance

By Yvonne Cheong

SINGAPORE, Oct 23 (Reuters) - Southeast Asian equities
took
another beating on Thursday on earnings worries, while
uneasiness over persistent credit tightness hit banks such as
DBS Group (DBSM.SI) and PT Bank Rakyat Indonesia (BBRI.JK).

Asian stocks fell to four-year lows on growing fears
emerging market weakness will lead to a global recession.

Singapore's benchmark Straits Times index .FTSTI lost 4
percent and looked set to mark its worst month in history,
having slid 25 percent in October. The index ended at its
lowest level since June 2004.

Analysts said despite worldwide government efforts to ease
credit markets, global trade had been affected as distrust
between banks and businesses persisted.

"Banks are still staying on the sidelines. They're simply
not lending because they're afraid to lose," said Christoffer
Moltke-Leth, head of sales trading at Saxo Capital Markets in
Singapore.

"There are buying opportunities, but I would be very
cautious because those who went in too early have been burnt."

Indonesian shares .JKSE slid 3.1 percent to mark a fresh
2-year low, the Philippine index .PSI dropped 4.6 percent,
while Vietnam .VNI gave up 3.9 percent.

Thai stocks .SETI lost 2.8 percent, while Malaysia
.KLSE eased 1.4 percent, maintaining its outperformance in
the region.

Banks were among the main losers in the region.

Singapore's top lender by assets DBS Group (DBSM.SI) fell
5.3 percent to mark a new 5-year low. The bank said on
Wednesday it will compensate as much as $53.4 million to some
investors who bought structured products linked to collapsed
bank Lehman Brothers. [ID:nSIN134291]

Malaysia's Maybank (MBBM.KL), which said it has identified
Lehman-linked investors, also fell 2.8 percent.

Rival Bumiputra Commerce BUCM.KL slid 3.6 percent, even
after the country's Association of Banks said in a statement
its banks remain well-capitalised and lending activities have
not been affected. [ID:nKLA008008]

Among other losers, Thai's Siam Commercial Bank SCB.BK
dropped 4.2 percent, while Indonesia's PT Bank Rakyat Indonesia
Tbk (BBRI.JK) plunged 7.1 percent.
(Editing by Anshuman Daga)