October 18, 2018 / 4:20 AM / a month ago

SE Asia Stocks-Fall after hawkish Fed minutes

    * Singapore slips, real estate stocks top losers
    * Indonesia retreats from two-week closing high

    By Rashmi Ashok
    Oct 18 (Reuters) - Southeast Asian stock markets fell on
Thursday, in line with broader Asia after minutes from the U.S.
Federal Reserve's September meeting affirmed expectations that
the central bank is likely to continue raising interest rates
this year.
    Despite U.S. President Donald Trump's criticism, all Fed
policymakers backed raising interest rates last month and also
generally agreed borrowing costs were set to rise further.

    "A slightly more hawkish tone in the FOMC (Federal Open
Market Committee) September minutes, which prompted the 10-year
UST bond yield higher... may also dampen any near-term
enthusiasm for extending the Asian equity rally for now," OCBC
analysts said in a note.
    Singapore shares edged lower, dragged mainly by real
estate stocks after the city-state announced stricter guidelines
on the maximum number of units in new blocks of private flats
and condominiums in a move to tackle what authorities have
called "excessive development of shoebox units".
    "It's a knee-jerk reaction because markets were not
expecting another set of cooling measures so soon," said Joel
Ng, an analyst with KGI Securities.
    The new rules will lead to a fall in prices which will eat
into developers' margins, he said, adding that, "There really is
no reason for holding developers at this point given the
potential headwinds going forward."
    Sector heavyweight City Developments Ltd fell 2.3
percent, while UOL Group Ltd declined 2.2 percent. 
    Philippine stocks were marginally lower after
shedding as much as 0.6 percent earlier in the day. 
    Real estate and financial stocks were the biggest losers.
Conglomerate Ayala Corp fell 0.9 percent and
Metropolitan Bank & Trust Company shed 0.7 percent.
    Indonesian shares fell from a two-week closing high
hit in the previous session. Banks were top losers followed by
telecom stocks. PT Bank Central Asia Tbk shed 1.3
percent, while PT Telekomunikasi Indonesia Tbk
declined 2 percent.
    Malaysian stocks edged lower with Petronas Gas Bhd
 losing 1.2 percent and investment holding company Sime
Darby Bhd down 1.2 percent.
    Thai shares slipped up to 0.5 percent, dragged by
banking and energy stocks.  
    
For Asian Companies click;  

SOUTHEAST ASIAN STOCK MARKETS AS AT 0415 GMT
    
  Market           Current       Previous close   Pct Move
  Singapore        3069.05       3071.1           -0.07
  Bangkok          1688.53       1695.04          -0.38
  Manila           7093.83       7099.68          -0.08
  Jakarta          5835.837      5868.62          -0.56
  Kuala Lumpur     1737.72       1740.59          -0.16
  Ho Chi Minh      967.07        971.6            -0.47
                                                  
  Change on year                                  
  Market           Current       End 2017         Pct Move
  Singapore        3069.05       3402.92          -9.81
  Bangkok          1688.53       1753.71          -3.72
  Manila           7093.83       8558.42          -17.11
  Jakarta          5835.837      6355.654         -8.18
  Kuala Lumpur     1737.72       1796.81          -3.29
  Ho Chi Minh      967.07        984.24           -1.74
                                                           
 

 (Reporting by Rashmi Ashok; Editing by Subhranshu Sahu)
  
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