* Malaysia, Indonesia extend gains thanks to financials
* S'pore's banks erase some gains; Thai stocks buck trend
By Viparat Jantraprap
BANGKOK, April 1 (Reuters) - Stocks in Malaysia and
Indonesia rose more than 1 percent while Singapore eked out a
slim gain on Wednesday as investors bought bank shares, with
hopes for a global economic revival stirring appetite for risk
in the region.
Malaysia .KLSE -- Southeast Asia's worst-performing
market in March -- ended up 1.3 percent, with top bank Maybank
(MBBM.KL) surging 5.2 percent. CIMB BUCM.KL rose 2.2 percent.
The Indonesian index .JKSE climbed 1.9 percent, coming
off an early gain of 2.1 percent, with Bank Rakyat (BBRI.JK)
rising 8 percent. Bank Internasional Indonesia (BNII.JK) jumped
25 percent.
Most Asian stock markets started the new quarter with more
gains after an impressive performance in March on expectations
the global economy may be about to bottom out and hopes the
financial system was on the mend. [nT258405]
Analysts expected global equities to extend their gains in
the second quarter.
"Stock markets are still not convinced that the global
economy is heading for recovery. But investors opted to buy
quickly when bad news pushed stock prices down," said Viwat
Techapoonphol, a strategist at Tisco Securities in Bangkok.
Singapore .FTSTI inched up 0.13 percent, losing most of
its 1.6 percent rise in morning trade, with United Overseas
Bank (UOBH.SI) up 0.8 percent and the biggest lender, DBS Group
(DBSM.SI), unchanged after rising nearly 2 percent earlier.
Citi Investment Research said it was negative on all
Singapore banks due to its bearish view on Singapore's economy
and it expected the benchmark stock index could head to the
1,500 level, from 1702.26 on Wednesday.
The broker has a 'sell' rating on DBS shares.
"DBS has underperformed its peers due to margin pressure
concerns and its CDO exposure," Citi said in a March 31 note.
Bucking the trend, the Thai index .SETI lost 0.3 percent,
pulled lower by selling of energy shares .SETEN, which have a
big weighting in the index, and worries about domestic politics
as anti-government protests continued. [nBKK423415]
The biggest energy company, PTT (PTT.BK), lost 0.7 percent
and PTT Exploration and Production PTTE.BK fell 2.1 percent.
In Manila, the Philippine index .PSI fell for a third
day, dipping nearly 1 percent close to a one-week low, led by a
5.9 percent drop in Banco de Oro Unibank (BDO.PS), the
Philippines' biggest bank in terms of assets.
Vietnam .VNI, Southeast Asia's best performer for March,
jumped 3.2 percent, snapping two days of losses.
[ID:nHAN224239]
(Editing by Alan Raybould)
