Philippines, Indonesia extend falls on Turkey woes

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BENGALURU (Aug 14): Most Southeast Asian stock markets closed lower on Tuesday, with the Philippines and Indonesia shedding about 1.5% each, as the collapse of Turkish lira continued to hurt risk appetite in emerging markets.

The lira has lost more than 70% of its value against the dollar this year, largely over worries about President Tayyip Erdogan's influence over the economy and deteriorating ties with the United States.

It recovered slightly on the day after the central bank said it would provide liquidity and cut reserve requirements for banks.

In Southeast Asia, Philippine shares fell for a fourth straight session with financial and real estate stocks leading the decline.

Bank of the Philippine Islands shed 3.3%, while property developer SM Prime Holdings Inc lost 2.3%.

"Most other emerging markets slowed over the past few sessions, and the Philippines is not an exception. They have been lower primarily on fears of contagion," said Charles William Ang, an associate analyst at COL Financial Group.

"The Philippine market has rallied over the past two months, up until last week. Profit-taking is to be expected, and I think the market could be soft for the rest of the week."

Indonesian shares extended losses into a second session and posted its lowest close in more than one month, dragged mainly by consumer stocks.

Cosmetics maker Unilever Indonesia fell 3.8%, while consumer goods conglomerate Astra International Tbk PT ended 3.9% lower.

Indonesia has been struggling with extended capital outflows amid concerns over a weak rupiah and spiking inflation. Foreign direct investment contracted 12.9% in the second quarter from a year earlier, the country's investment board reported.

President Joko Widodo will hold a cabinet meeting on Tuesday to discuss foreign exchange strategy, a day after the rupiah plunged more than 1%.

The central bank is also expected to keep its benchmark interest rate unchanged at its policy meeting on Wednesday, according to a Reuters poll.

Thai shares ended lower, while Malaysia and Vietnam ended flat.

SOUTHEAST ASIAN STOCK MARKETS
Change on the day

Market             Current   Previous close  % move
Singapore          3242.87   3245.34         -0.08
Bangkok            1695.35   1705.96         -0.62
Manila             7527.78   7635.27         -1.41
Jakarta            5769.873  5861.246        -1.56
Kuala Lumpur       1783.78   1783.34         0.02
Ho Chi Minh        978.27    978.04          0.02

Change on year

Market             Current   End 2017        % move
Singapore          3242.87   3402.92         -4.70
Bangkok            1695.35   1753.71         -3.33
Manila             7527.78   8558.42         -12.04
Jakarta            5769.873  6355.654        -9.22
Kuala Lumpur       1783.78   1796.81         -0.73
Ho Chi Minh        978.27    984.24          -0.61