August 13, 2018 / 4:45 AM / 8 months ago

SE Asia Stocks-Indonesian shares plunge amid rout in EM currencies, stocks

    * Indonesia posts worst pct drop since Nov 2016
    * Philippines marks biggest pct decline in over 7 weeks
    * Singapore, Malaysia slide more than 1 pct

    By Karthika Suresh Namboothiri
    Aug 13 (Reuters) - Indonesian shares plummeted on Monday in
their worst drop in nearly two years as emerging market
currencies faced a deep selloff, causing a market rout across
Southeast Asia.  
    The Turkish lira and the Indian rupee plunged to all-time
lows on Monday, while the Indonesian rupiah slid to a near
three-year low.
    "Emerging markets have very weak current account balance
which would have very negative impact," said Taye Shim, head of
research at Jakarta-based Mirae Asset Sekuritas.
    "That is prompting investors to reassess their investment
thesis on emerging markets as we really don't know how it is
going to play out."
    The lira has lost about 45 percent of its value
against the dollar this year, largely over worries about
President Tayyip Erdogan's influence over the economy, his
repeated calls for lower interest rates in the face of high
inflation and deteriorating ties with the United States.

    The lira's drop unnerved global investors, with MSCI's
broadest index of Asia-Pacific shares outside Japan
 shedding as much as 1.6 percent on Monday.
    Indonesian shares slumped more than 3 percent, marking their
steepest intraday percentage drop since November 2016.
    The rupiah also plunged 0.9 percent on Monday to its weakest
since October 2015, after data showed on Friday the country's
current account deficit, a major concern for global emerging
market investors, swelled to the largest in nearly four years in
the second quarter. 
    Indonesia's central bank is intervening to defend the
rupiah, a senior official said on Monday.
    Financials led the losses in the stocks, with Bank Central
Asia and Bank Mandiri sliding as much as 3.5
percent and 6.5 percent, respectively.
    The index of the country's 45 most liquid stocks
dropped nearly 4 percent.
    Philippines also plunged, by 2 percent, marking its worst
drop since June 22.
    SM investments Corp dropped over 2.7 percent, while
real estate developer Ayala Land fell 3.6 percent.
    Singapore shares dropped 1.4 percent to their lowest
in nearly four weeks, dragged down largely by financials. 
    Oversea-Chinese Banking Corp fell as much as 2.3
percent while DBS Group Holdings hit a five-week low.
    Singapore's economy grew slower than initial estimates in
the April-June period on a quarter-on-quarter basis, revised
data showed on Monday, as the government flagged a likely
moderation in growth in the second half.
    Thailand was closed for a holiday.
For Asian Companies click;  

 Market          Current   Previous close  Pct Move
 Singapore       3245.55   3284.78         -1.19
 Manila          7651.99   7804.98         -1.96
 Jakarta         5885.542  6077.173        -3.15
 Kuala Lumpur    1785.27   1805.75         -1.13
 Ho Chi Minh     970       968.47          0.16
 Change on year                            
 Market          Current   End 2017        Pct Move
 Singapore       3245.55   3402.92         -4.62
 Manila          7651.99   8558.42         -10.59
 Jakarta         5885.542  6355.654        -7.40
 Kuala Lumpur    1785.27   1796.81         -0.64
 Ho Chi Minh     970       984.24          -1.45

 (Additional Reporting by Aditya Soni; Editing by Amrutha
Nuestros Estándares:Los principios Thomson Reuters
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