BANGKOK, Sept 30: Southeast Asian stocks fell on Monday as a risk-off mood prevailed due to concerns of a likely shutdown of the U.S. Government, with Indonesia poised to end the quarter with the biggest loss since December 2008 as a weak rupiah helped spur risk aversion.
Indonesia’s main share index was down 1.3 percent, extending a 3.5 percent drop on the previous week and losing more than 9 percent so far in the July-September quarter, making it the region’s worst performer.
Investors further trimmed positions in large caps, sending Semen Indonesia shares 4 percent lower, continuing from last week’s 8.5 percent decline. Selling was also heavy in banks amid concerns over loan growth outlook.
The Thai SET index was the second worst performer, sliding 2 percent and on track for a quarterly loss of around 4 percent. Shares in banks such as Kasikornbank and Krung Thai Bank extended losses from the previous week.
‘We expect foreign outflows to continue in the near-term … We recommend investors to stay defensive and monitor if the U.S. congress can avert a government shutdown today before re-shaping investment strategy,’ a Bangkok-based strategist at KGI Securities wrote in a report.
Trading volume was relatively thin across exchanges as players awaited key economic data this week, including September inflation of Indonesia for an indication of its monetary policy and interest rate outlook that could affect fund flows.
(AGENCIES)
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