SE Asia Stocks-Thai SET index at 2-mth low after selloffs in airlines
BANGKOK, Dec 2 (Reuters) - Thailand's key stock index hit a two-month low on Wednesday as airlines declined after the U.S. Federal Aviation Administration (FAA) downgraded the country's safety ratings, while most other share markets in Southeast Asia were little changed in line with Asian stocks. Bangkok's SET index fell 0.8 percent to the lowest level since Oct. 2. Shares of national carrier Thai Airways International dropped 6.3 percent to the lowest since 2009. Asia Aviation, a major shareholder in budget carrier Thai AirAsia, and Bangkok Airways both fell more than 3 percent each. Nok Airlines was down 1.5 percent. "Although the downgrade on Thailand's aviation rating is negative, we think that the impact would be limited. Currently, there is no commercial or customer impact as Thai Airways International had already ceased operations to the US," said broker KGI Securities. Thai Prime Minister Prayuth Chan-ocha on Wednesday ordered officials to improve aviation safety standards after the U.S. FAA downgraded Thailand's safety ratings. Stocks in Malaysia, Indonesia and the Philippines edged lower with foreign investors seen selling shares amid expectation the European Central Bank will ease policy further at its meeting on Thursday. Among outperformers, Singapore rose 0.6 percent ahead of November factory data and Vietnam was up 0.7 percent after the World Bank raised its forecast for the country's economic growth. Asian stock markets wavered after downbeat U.S. manufacturing data raised questions about how aggressive the Federal Reserve would be when hiking interest rates, while the dollar retreated from 8-1/2-month highs. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS Change at 0819 GMT Market Current Prev Close Pct Move Singapore 2888.08 2870.26 +0.62 Kuala Lumpur 1679.31 1682.37 -0.18 Bangkok 1345.96 1357.01 -0.81 Jakarta 4543.96 4557.67 -0.30 Manila 7047.08 7060.60 -0.19 Ho Chi Minh 574.42 570.41 +0.70 (Reporting by Viparat Jantraprap; Editing by Subhranshu Sahu)
© Thomson Reuters 2016 All rights reserved.