Advertisement

SE Asia Stocks-Most fall as China stands pat on lending rate; Singapore gains

* Markets had hoped Beijing would provide further monetary support * Indonesia rises ahead of cenbank policy meet on Oct 24 * Malaysia set to decline for a third consecutive session By Sameer Manekar Oct 21 (Reuters) - Most Southeast Asian stock markets dipped on Monday as China, the region's biggest trading partner, unexpectedly kept its benchmark lending rate unchanged, trimming hopes of further stimulus measures from the world's second-largest economy. The decision to keep the benchmark lending rate steady came just days after China reported its third-quarter gross domestic product growth cooling to a nearly 30-year low. Though markets had hoped that the central bank would provide further monetary support to shore up growth, investors in China's financial markets took the rate decision in stride. A bruising 15-month long Sino-U.S. trade dispute was also one of the key factors fuelling the easing expectations. "Market is getting in the frame of mind here that the People's Bank of China is not going to come riding in to the rescue," said Stephen Innes, market strategist at AxiTrader. Leading losses in the region, the Philippine stocks extended declines to a second session, with utility and financial sectors being the biggest laggards in the index. Real-estate company SM Prime Holdings and Aboitiz Power Corp lost 1.4% and 0.3%, respectively. Thai shares dropped, poised for a third session of losses, after data showed a 1.39% decline in the country's customs-cleared exports in September, worse than a Reuters poll forecast of a 1.2% increase. Siam Commercial Bank dropped 2.6%, while retailer Home Product Center PCL fell 3.6%. Malaysian stocks were set to close lower for a third straight session, with financials and consumer sectors losing the most. CIMB Group Holdings and Nestle (Malaysia) Bhd shed 0.8% and 0.6%, respectively. Bucking the sombre mood, the Singapore index rose 0.9% as property developers in the city-state continued to rally. "Prospects are favourable in the property sector," said Stephen Innes, market strategist at AxiTrader, referring to the real-estate sector in Singapore benefitting from Hong Kong companies moving out amid political unrest. "Even companies based out of Chinese mainland do not want to buy in Hong Kong, they prefer to buy outside now, and the number one destination is going to be Singapore for their money." Innes added. Property firm UOL Group added as much as 2.8%, while City Developments and Ascendas Real Estate Investment Trust gained 1.8% and 1.3%, respectively. Indonesian stocks were on track to post their seventh consecutive session of gains, ahead of the Bank Indonesia policy meet later this week, where the central bank is expected to reduce its policy rate by another 25bps. Consumer and financial firms were the biggest gainers in the index, with Unilever Indonesia and Bank Central Asia rising 0.7% each. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS Change on the day Market Current Previous close Pct Move Singapore 3140.94 3114.16 0.86 Bangkok 1624.86 1631.43 -0.40 Manila 7870.83 7885.23 -0.18 Jakarta 6199.51 6191.947 0.12 Kuala Lumpur 1568.75 1571.15 -0.15 Ho Chi Minh 988.31 989.2 -0.09 Change so far in 2019 Market Current End 2018 Pct Move Singapore 3140.94 3068.76 2.35 Bangkok 1624.86 1563.88 3.90 Manila 7870.83 7,466.02 5.42 Jakarta 6199.51 6,194.50 0.08 Kuala Lumpur 1568.75 1690.58 -7.21 Ho Chi Minh 988.31 892.54 10.73 (Reporting by Sameer Manekar in Bengaluru, Editing by Sherry Jacob-Phillips)