SE Asia Stocks -Falter; Fed hint on year-end rate hike hits emerging markets
BANGKOK, Oct 29 (Reuters) - Most Southeast Asian stock markets fell on Thursday, with the Indonesian benchmark dropping to a near two-week low and most other indexes at multi-week lows, as sentiment remained cautious after the U.S. Federal Reserve hinted a rate hike was possible by year-end. The Jakarta composite index was down 1.95 percent at 4,518.98, the lowest since Oct. 16, on track for a third straight day of losses. The overall Indonesian stock market saw outflows of foreign funds this week, in line with most peers in the region, as investors also awaited earnings results for indications of the outlook on corporate health. Bank Rakyat Indonesia, the most actively-traded stock by turnover, dropped 3.4 percent to a one-week low, while Telkom Indonesia shed 2.2 percent, both due to foreign-led selling, Thomson Reuters data showed. Telkom posted a 2.5 percent rise in its nine-month net profit late on Wednesday. Bahana Securities said the company's third-quarter net profit was slightly below its forecast but kept its "buy" rating, citing easing competition and solid data growth. The Thai SET index shed 1 percent to a three-week low of 1,393.51. Broker Bualuang Securities advised investors to wait and see, with the SET breaking below the key 1,400-level, while broker Krungsri Securities expected outflows after the Fed's statement. "The Fed rate hike would benefit U.S. shares more than the SET. The USD also gained ground against regional currencies and the baht, dashing hopes for fund flows returning to emerging markets," it said in a note to clients. Malaysia's key index hovered around a three-week low, with Singapore at a two-week low and the Philippines at a near one-week low. Vietnam, bucking the trend, rose 0.9 percent as blue chip stocks gained Asian shares edged lower and the dollar stood tall on Thursday, after the U.S. Fed rekindled market expectations that it might still be on track to raise interest rates by year-end. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS Change at 0552 GMT Market Current Prev Close Pct Move Singapore 3017.60 3040.51 -0.75 Kuala Lumpur 1674.64 1686.51 -0.70 Bangkok 1393.51 1409.26 -1.12 Jakarta 4518.98 4608.74 -1.95 Manila 7196.92 7289.26 -1.27 Ho Chi Minh 601.65 596.24 +0.91 (Reporting by Viparat Jantraprap; Editing by Anupama Dwivedi)
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