March 6, 2020 / 10:52 AM / in a month

UPDATE 1-SE Asia Stocks-Fall as virus fuels slowdown fears; Singapore hits over 1-yr low

    * Outbreak could slash global GDP growth by 0.1% to 0.4% -
ADB
    * Singapore share hit over 1-yr low
    * Philippines, Thailand end nearly 2% lower

 (Updates third bullet, closing levels for Singapore in
paragraph 8, Indonesia in paragraph 13, and in table)
    By Shruti Sonal
    March 6 (Reuters) - Southeast Asian stock markets ended
sharply lower on Friday on fears of a global economic slowdown
due to the fast-spreading coronavirus, with Singapore shares
closing at their lowest in more than a year.
    Broader Asian markets tracked Wall Street lower as deaths
from the virus rose outside of China, taking the worldwide toll
to more than 3,200. 
    "What was initially seen as a China-centric shock is now
certainly a global concern," said Westpac senior economist
Elliot Clarke.
    The Asian Development Bank said the outbreak could cut
global gross domestic product growth by 0.1% to 0.4% this year.

    Adding to worries, S&P Global Ratings flagged a slowdown in
growth in the Asia-Pacific region to 4% in 2020, the lowest
since the global financial crisis, with Singapore and Thailand
among the worst-hit.
    Financials across Southeast Asia were in the red, as further
rate cuts seemed likely in a bid to shield economies from the
impact of the outbreak.
    "We are just at the start of the rate-cut cycle and entering
an uncharted territory. Banks, which are heavyweights in most
countries, are likely to face the brunt of the cuts and drag
down indexes," said Joel Ng, a Singapore-based analyst at KGI
Securities.
    The Singapore benchmark index closed down 1.9% to
touch its lowest since October 2018 amid mounting fears of a
recession, which led ING analysts to cut their forecast for
annual economic growth to 0.3% from 1%.
    "We think a couple of quarters of GDP contraction, both on a
yearly and quarterly basis, now look inevitable. Accordingly, we
see -0.3% and -0.5% year-on-year fall in the first and second
quarters, respectively," they said.
    DBS Group Holdings, Southeast Asia's largest
lender, shed more than 2% to hit its lowest level in more than a
year.
    Thai stocks slipped nearly 2%, with index
heavyweight Siam Commercial Bank hitting its lowest
since July 2010.
    The tourism-dependent economy's first-quarter economic
performance will 'not be good' as the coronavirus outbreak hurts
activity, a government official said on Friday.
    The Philippine benchmark slid 1.7%, while Indonesian
equities closed 2.5% lower. 

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SOUTHEAST ASIAN STOCK MARKETS 
 Change on the day                               
 Market                 Current  Previous close  Pct Move
 Singapore              2960.98  3018.27         -1.90
 Bangkok                1364.57  1390.83         -1.89
 Manila                 6770.38  6884.77         -1.66
 Jakarta                5498.54  5638.13         -2.48
 Kuala Lumpur           1483.1   1491.03         -0.53
 Ho Chi Minh            891.44   893.31          -0.21
                                                 
 Change so far in 2020                           
 Market                 Current  End 2019        Pct Move
 Singapore              2960.98  3222.83         -8.12
 Bangkok                1364.57  1579.84         -13.63
 Manila                 6770.38  7,815.26        -13.37
 Jakarta                5498.54  6,299.54        -12.72
 Kuala Lumpur           1483.1   1588.76         -6.65
 Ho Chi Minh            891.44   960.99          -7.24
 
 (Reporting by Shruti Sonal; Editing by Arun Koyyur;)
  
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