SE Asia Stocks-Jakarta down after parliament ends direct elections; others mixed
Sept 26 (Reuters) - Indonesian stocks ended at a more than one-week low on Friday, with heavy foreign outflow after its parliament approved legislation to end direct elections to regional posts, while other Southeast Asian markets ended mixed. The Jakarta Composite Index ended 1.3 percent weaker at its lowest close since Sept. 16 on concerns over political stability after president-elect Joko Widodo's Indonesian Democratic Party failed to secure the political support needed to scuttle the legislation. The index, the worst performer on the week, touched a seven-week low earlier in the day after Indonesia's parliament approved a measure ending direct elections for governors and mayors, a move president-elect Joko Widodo said was a "big step back" for the country. "It reflects that the opposition coalition is very solid, which could be a problem if the new government wants to pass a new economic policy," said Arief Budiman, an analyst with Ciptadana Securities in Jakarta. However, he said the market can take some comfort in the fact that the government does not need to pass fuel subsidy policy through the parliament. The Asian Development Bank's downward revision of the country's 2014 economic growth to 5.3 percent from 5.7 percent also weighed on sentiment and the bourse suffered a net $118.13 million foreign outflow. Financial stocks led the fall, with Bank Mandiri and Bank Rakyat Indonesia losing 4.5 percent and 3.9 percent, respectively. Malaysia fell 0.1 percent, the Philippines slipped 0.5 percent, and Vietnam's benchmark VN Index surrendered its early gains to end slightly weaker at 0.02 percent. Singapore closed nearly steady at 0.04 percent gain. Thailand, the only gainer on the week, closed 0.5 percent firmer despite the central bank's warning that the country's pivotal exports will not grow at all this year. However, the Bank of Thailand (BOT) maintained that the economy can still grow 1.5 percent in 2014 assuming the government can jack up spending in the last quarter. For Asian Companies click; For South East Asia Hot Stock reports, click; SOUTHEAST ASIAN STOCK MARKETS Change on day Market Current Prev Close Pct Move Singapore 3292.21 3290.99 +0.04 Kuala Lumpur 1840.50 1843.11 -0.14 Bangkok 1600.16 1591.99 +0.51 Jakarta 5132.56 5201.38 -1.32 Manila 7261.30 7294.21 -0.45 Ho Chi Minh 604.98 605.10 -0.02 Change on year Market Current End 2013 Pct Move Singapore 3292.21 3167.43 +3.94 Kuala Lumpur 1840.50 1866.96 -1.42 Bangkok 1600.16 1298.71 +23.21 Jakarta 5132.56 4274.18 +20.06 Manila 7261.30 5889.83 +23.29 Ho Chi Minh 604.98 504.63 +19.89 (1 US dollar = 12,020.0000 rupiah) (Reporting by Shihar Aneez ib Colombo and Fransiska Nangoy in Jakarta; Editing by Anand Basu)
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