Most fall on oil price jitters, global economic woes

-A +A

 

BANGKOK (Oct 10): Most Southeast Asian stock markets retreated on Friday, with Malaysian shares poised for their worst week in more than a year and Singapore extending loss to a fourth week as energy-related stocks took a beating on declining oil prices.
    
Brent crude tumbled by more than a dollar to below $89 a barrel on Friday to trade near its weakest since 2010 as rising supply and a weakening global economic outlook stretched a months-long slump in oil prices.
    
Offshore and marine stocks such as Malaysia's UMW Oil & Gas, Singapore's Keppel Corp and Ezion Holdings were among those hit by jitters over weak oil prices.
    
Malaysia's main index was down almost 1 percent, reversing from a rise on Thursday and heading for a weekly loss of 1.5 percent, its worst since the week ended Aug. 23, 2013.
    
Underperformers in Malaysia included CIMB Group Holdings Bhd which dropped 3.4 percent after it agreed with two smaller domestic lenders to create the country's biggest banking group.
    
Investors also awaited details of the 2015 budget to be presented on Friday.
    
Singapore's Straits Times Index was down 1 percent, on track for a weekly fall of 0.8 percent, taking its decline since the week ended Sept. 19 to almost 4 percent.
    
"It is a given the regional markets will fall back again today, giving up most or all of yesterday's gains, as investors digest the swings on Wall Street and the possibility this is pointing to a bigger correction to come," Singapore-based broker NRA Capital said in a report
    
"America's fledging economic recovery will be dealt a blow if Europe re-enters into a recession and this is apparently a likely scenario at this point," it said.
    
Asian shares fell on Friday after weak German export data raised fears that a recession at the heart of Europe could slow down the global economy.
    
Southeast Asian stock markets recorded a mixed performance for the week.
    
Thai stocks are set for a 1.6 percent fall on the week, its second in a row, with the Philippines sliding 1.4 percent, a third straight week of falls. Indonesia is set to eke out a modest 0.2 weekly gain and Vietnam a 2.4 percent gain on the week.
   
SOUTHEAST ASIAN STOCK MARKETS
 Change at 0352 GMT
 Market             Current     Prev Close    Pct Move
 Singapore          3227.97       3259.25       -0.96
 Kuala Lumpur       1813.00       1829.73       -0.91
 Bangkok            1552.19       1560.61       -0.54
 Jakarta            4964.19       4993.88       -0.59
 Manila             7145.50       7201.89       -0.78
 Ho Chi Minh         627.19        624.34       +0.46