SE Asia Stocks-Slump as Britain votes to exit EU

viernes 24 de junio de 2016 06:12 GYT

By Anusha Ravindranath
    June 24 (Reuters) - Southeast Asian stocks were rattled on
Friday after Britons voted to leave the European Union in a
historic divorce, sparking a panic selloff in risky assets
worldwide as investors bet on safe-havens such as gold. 
    World financial markets plunged after nearly 52 percent of
Britons turned their back on the 28-nation bloc, forcing the
resignation of U.K. Prime Minister David Cameron and creating
the biggest global financial shock since the 2008 economic
    Brexit rocked commodity markets as well, as oil and copper
prices slumped, while safer assets such as gold raced to hit
more than two-year highs.   
    "Certainly, the uncertainty quotient is going to shoot up
over the next few days, as markets digest the ramifications of
Brexit," said Vishnu Varathan, a senior economist at Mizuho Bank
Ltd in Singapore. 
    Investors could continue to be risk-averse in the short term
while the dollar and gold could strengthen further, he added.
    The sterling sank 10 percent in value to its weakest since
before the 1985 Plaza Accord on Friday, triggering a global rush
of capital into the traditional security of the yen and the
Swiss franc. 
    "The effect of this exit is pretty much still a question
mark," said Alex Tiu of AB Capital Securities Inc in Manila,
adding investors would be on a wait-and-watch mode.
    "This is going to be an isolated case," said Manny Cruz of
Asiasec Equities Inc. The Brexit effects won't be long term,
unless other members of the bloc decide to leave the EU, he
    Singapore ended down 2.1 percent, its lowest close
since May 13, as banking stocks took a hit. The index lost 1
percent on the week. 
    DBS Group Holdings Ltd fell 2.7 percent, while
United Overseas Bank Ltd shed 2.3 percent. 
    Philippines finished down nearly 2 percent after
hitting a 13-month high in early trade. 
    In a reaction to the Brexit vote, the country's central bank
said more volatility can be expected in domestic markets in the
near term, but it was ready to provide liquidity as needed.
    Vietnam also closed nearly 2 percent lower, with
trading volumes on the Ho Chi Minh Stock Exchange surging to its
highest since June 2014 at 270 million shares.
    Jakarta closed down nearly 1 percent, led by
consumer cyclicals. 
    "The current reaction of the market is flight to safety,"
said Taye Shim, a strategist with Daewoo Securities in
Indonesia. "The long term impact would depend on how the value
of the dollar would unfold."
    The Brexit impact would be much lesser for Southeast Asian
regions, particularly Indonesia, which has low trade ties with
Europe, Shim said. 
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  STOCK MARKETS                                        
 Change on day                                         
  Market           Current       Previous     Pct Move
  Singapore        2735.39       2793.85      -2.09
  Bangkok          1413.19       1436.4       -1.62
  Manila           7629.72       7729.78      -1.29
  Jakarta          4834.569      4874.309     -0.82
  Kuala Lumpur     1634.05       1639.98      -0.36
  Ho Chi Minh      620.77        632.27       -1.82
  Change on year                              
  Market           Current       End 2015     Pct Move
  Singapore        2735.39       2882.73      -5.11
  Bangkok          1413.19       1288.02      9.72
  Manila           7629.72       6952.08      9.75
  Jakarta          4834.569      4593.008     5.26
  Kuala Lumpur     1634.05       1692.51      -3.45
  Ho Chi Minh      620.77        579.03       7.21

 (Reporting by Anusha Ravindranath in Bengaluru; Editing by Biju