SE Asia Stocks - Indonesia weak amid fuel price concerns; Thai index eases

Tue Aug 26, 2014 1:49am EDT

BANGKOK, Aug 26 (Reuters) - Indonesian shares extended
losses to an over-one-week low on Tuesday as investors weighed
in the risk of changes to the government's fuel subsidy, while
profit-taking pulled the Thai benchmark off the previous
session's highs.
    Jakarta's composite index fell for a third day,
trading down 0.4 percent at its lowest since Aug. 18. Banking
and cement stocks, including Bank Rakyat Indonesia and
Indocement, were among those actively traded.
    The market was concerned about domestic fuel prices as
president-elect Joko "Jokowi" Widodo is likely to meet with
current president Susilo Bambang Yudhoyono on Wednesday to
discuss a fuel subsidy plan, brokers said.
    "The news of a possible fuel price hike triggered
profit-taking on concerns of a short-term spike in inflation,"
said Andri Zakarias, an analyst with BNI Securities.
    "There are reports of Joko Widodo meeting president
Yudhoyono tomorrow and the market has heard comments about the
incoming government wanting the fuel increase to happen before
it takes office in October," Andri said.
    Thai key SET index was flat near midday. Shares of
airport operator Airports of Thailand fell almost 1
percent after Monday's rally to a record high, that helped bring
the SET to a near-15-month high in the previous session.
    Shares of builder Italian Thai Development rose 3
percent in strong volume as the new government's infrastructure
spending plan lifted the prospects of the domestic construction
industry, brokers said.
    "The 2.4-trillion-baht worth of mega infrastructure projects
waiting to be implemented will be the key factor to drive
economic growth from next year onward, which will also provide a
boost to foreign investor confidence," said Krungsri Securities.
    Shares in Singapore, Malaysia and the
Philippines were little changed, in line with other Asian
stock markets.
    Investors in Asia increasingly expect the European Central
Bank to expand liquidity as early as next week to boost the
sagging euro zone economy - just as the U.S. Federal Reserve
plans to end its bond-buying drive. 
    In Vietnam, the benchmark VN Index was up 0.62
percent, lifted by property firm Vingroup that surged
on its ex-rights date.
    
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SOUTHEAST ASIAN STOCK MARKETS
 Change at 0517 GMT
 Market             Current     Prev Close    Pct Move
 TR SE Asia Index*   445.16        445.28       -0.03
 Singapore          3328.40       3330.28       -0.06
 Kuala Lumpur       1862.36       1862.31        0.00
 Bangkok            1563.21       1563.13       +0.01
 Jakarta            5163.44       5184.96       -0.41
 Manila             7134.22       7133.09       +0.02
 Ho Chi Minh         629.74        625.88       +0.62
 * The Thomson Reuters South East Asia Index is a
highly representative indicator of stocks listed in Indonesia,
Malaysia, the Philippines, Singapore, Thailand and Vietnam.    

 (Reporting by Viparat Jantraprap; Additional reporting by
Fransiska Nangoy in JAKARTA; Editing by Sunil Nair)
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