SE Asia Stocks-Malaysia touches 3-week low; Singapore retreats

* Energy-related shares lead losers in Malaysia, Thailand

* Singapore comes off 1-week high; banks pare early gains

* Vietnam falls for 2nd day, Philippines bucks trend

By Viparat Jantraprap

BANGKOK, June 22 (Reuters) - Most Southeast Asian stock
markets fell on Monday, with losses in energy-linked
heavyweights such as Sime Darby helping push Malaysia to a
three-week low and PTT Exploration and Production leading falls
in Thailand.

Oil, which fell $1 a barrel to below $69 on Monday, weighed
on regional sentiment while investors were cautiously awaiting
guidance on interest rates and the economic outlook from a U.S.
Federal Reserve meeting this week, analysts said.

U.S. stock index futures pointed to a lower start on Wall
Street on Monday, although the MSCI index of Asia-Pacific
stocks outside Japan .MIAPJ0000PUS was up 0.05 percent by
1003 GMT.

Malaysia's main stock index .KLSE dropped 1.3 percent,
after earlier falling as much as 1.8 percent to its lowest
since May 29, with Sime Darby (SIME.KL) sliding 2.1 percent and
Petronas Gas (PGAS.KL) off 1 percent.

Singapore's index .FTSTI inched down 0.3 percent, erasing
a 1.35 percent gain to a one-week high in morning trade.
Banking stocks lost early gains, with DBS Group (DBSM.SI) down
0.9 percent, and United Overseas Bank (UOBH.SI) and
Oversea-Chinese Banking Corporation (OCBC.SI) each falling more
than 1 percent.

Shares in the banks had gained early in the day after
Deutsche Bank raised its target prices for all three, citing
further improvement in net interest margins.

The Thai index .SETI lost 1.1 percent, with PTT
Exploration PTTE.BK down 3.7 percent and PTT Chemical
PTTC.BK down 5.8 percent.

Growing expectations that the interest rate cutting cycle
had ended boosted the outlook for net interest margins in the
banking sector, sending fourth-ranked Kasikornbank KBAN.BK up
1.9 percent and TMB Bank TMB.BK 2.4 percent higher.

"Either the Bank of Thailand maintains or raises its policy
interest rate in the latter part of this year -- they are still
supportive for the net interest margin outlook of commercial
banks," an analyst at Kim Eng Securities said. The broker had
Kasikornbank as its top pick due to an improving loan outlook.

The Jakarta index .JKSE fell 0.8 percent, with Bank
Rakyat (BBRI.JK) down 3.3 percent and Adaro Energy (ADRO.JK)
off 4.8 percent. Vietnam .VNI fell for a second day, ending
down 3.6 percent, led by a 5 percent fall in PVFC PVF.HM, the
financial arm of state oil group Petrovietnam.

Manila .PSI gained 0.6 percent, steadying after a
four-day fall and a 7.7 percent loss last week, when it was
Southeast Asia's worst performer. Advancers included Ayala Land
(ALI.PS), the Philippines' largest developer, which rose 3.7
percent.

Ayala Land said it may revive its long-held ambition of
expanding its overseas business and would invest directly in
foreign projects if the opportunity arose.
($1=34.12 Baht)
(Editing by Alan Raybould)