* S'pore down for sixth day, banking stocks fall
* Indonesia, Thailand extend losses into fourth day
* Vietnam bucks trend again
By Viparat Jantraprap
BANGKOK, June 18 (Reuters) - Major Southeast Asian stock
markets tumbled again on Thursday, with Jakarta sliding more
than 3 percent and Singapore declining for a sixth day, weighed
down by losses in heavyweight banking shares.
Asian stocks retreated as investors took profits after
solid gains earlier in the second quarter sparked by signs the
global economy is starting to recover. The MSCI index of
Asia-Pacific stocks outside Japan .MIAPJ0000PUS fell 1.1
percent by 0938 GMT.
Uncertainty over financial regulatory reform in the United
States put pressure on global stocks, and market corrections
should continue for a while before the improved economic
outlook turns sentiment positive again, analysts said.
Singapore's index .FTSTI lost 1.5 percent to 2,237.20,
adding to a 5 percent fall over the previous five days.
DBS Group Holdings (DBSM.SI) eased 1.5 percent,
Oversea-Chinese Banking Corp (OCBC.SI) slid 1.9 percent and
United Overseas Bank (UOBH.SI) fell 1.7 percent.
Property firm Yanlord (YNLG.SI) was down 1.3 percent
following news it wanted to raise about S$503 million through
the sale of shares and convertible bonds.
However, broker Citi Investment Research raised its target
for the Straits Time Index to 2,700, citing optimism about
economic recovery.
"This economic recovery is starting to look more V-shaped
than the prevailing wisdom of a U-shape," the broker said in a
research note.
"Economic data is coming in better than expected. There is
an increasing chance that this recession will be over by the
third rather than fourth quarter, in line with the durations of
past recessions," it said.
Malaysia .KLSE fell 1.5 percent after a 1.86 percent loss
over the previous two days, Thailand .SETI and Indonesia
.JKSE dropped for a fourth day, down 2.7 percent and 3.7
percent respectively, while Manila .PSI fell for a third day,
easing 0.3 percent.
Bucking the trend, Vietnam .VNI rose for a second day,
adding 1.4 percent, led by Vinamilk VNM.HM, Vietnam's top
dairy firm, and real estate developer Hoang Anh Gia Lai
HAG.HM, both of which climbed 5.0 percent.
In Kuala Lumpur, Malayan Banking (MBBM.KL), Malaysia's
biggest lender, fell 4.2 percent and Bumiputra Commerce
Holdings BUCM.KL lost 2.2 percent.
In Bangkok, Bank of Ayudhya BAY.BK was down 4.4 percent
and Siam Commercial Bank SCB.BK was 1.4 percent lower.
In Jakarta, Bank Mandiri (BMRI.JK), the largest lender, was
down 5.5 percent, and Bank Rakyat Indonesia (BBRI.JK), the
third largest, fell 6.5 percent.
In Manila, Philippine Long Distance Telephone (TEL.PS), the
country's largest listed firm, fell 1.9 percent and
conglomerate Aboitiz Equity Ventures (AEV.PS) dropped 3.2
percent.
($1=34.11 Baht)
(Editing by Alan Raybould)
