SE Asia Stocks-Indonesia retreats; Thai shares nearly overbought
BANGKOK, Aug 22 (Reuters) - Indonesian shares failed to hold on to earlier gains and slipped after hitting a near record high on Friday as investors booked profit in large caps such as Telekomunikasi Indonesia, while the Thai benchmark hit a 14-month high for a fourth straight day. Stocks in the benchmark Jakarta's Composite Index fell 0.4 percent, but still on track for its second straight week of gains. The index opened near a record high as the rupiah strengthened, a day after the country's highest court gave Joko Widodo the green light to lead Southeast Asia's largest economy from its worst slowdown since the global financial crisis. Bangkok's SET index rose 0.5 percent to 1,558.41, heading for a weekly gain of 0.8 percent after military leader General Prayuth Chan-ocha was appointed prime minister and investors were optimistic about the political stability. The index hit a high of 1,559.21, the highest since June 3, 2013. Brokers said the market rally could be short lived, with shares nearly overbought. The SET's 14-day Relative Strength Index (RSI) was at 67.18, close to an overbought line of 70 or above. "If the SET index could inch closer to 1,560 points, it would be safe for investors to gradually book profits as the market approaches overbought territory," strategists at broker Phillip Securities wrote in a report. Other stock markets in Southeast Asia mostly edged higher as upbeat U.S. economic data sparked another record close on Wall Street. Shares in Singapore, Malaysia, and the Philippines are poised to extend their gains for a second week, while Vietnam is heading for a weekly gain of 3 percent, reversing the loss on the previous week. For Asian Companies click; For South East Asia Hot Stock reports, click; SOUTHEAST ASIAN STOCK MARKETS Change at 0628 GMT Market Current Prev Close Pct Move TR SE Asia Index* 446.68 444.83 +0.42 Singapore 3332.50 3324.09 +0.25 Kuala Lumpur 1874.56 1874.81 -0.01 Bangkok 1558.41 1551.41 +0.45 Jakarta 5187.65 5206.14 -0.36 Manila 7121.05 7096.49 +0.35 Ho Chi Minh 621.33 612.94 +1.37 * The Thomson Reuters South East Asia Index is a highly representative indicator of stocks listed in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. (Reporting by Viparat Jantraprap; Editing by Anand Basu)
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