Most Southeast Asian stock markets fell in light volume on Friday as investors cut exposure to risky assets, causing a drop in blue chip shares and a rise in outflows of global capital. Volume was thin ahead of long holidays next week and as investors waited for a speech by Federal Reserve Chairman Ben Bernanke around 1400 GMT.
--- Thai big cap dividends lure some buyers
Ratings agency Standard & Poor's said the outlook for Asian sovereign credit was stable but was showing some downside risks. It said countries with a higher share of exports to Western nations, such as Singapore, would be hurt if the United States or European economies continued to slow.
Singapore shares slid 0.6 percent on Friday, with rig builder Sembcorp Marine off 2.37 percent as worries over an economic recession continued to weigh on the outlook for oil-rig demand. The city-state's bourse has lost nearly 14 percent this year, Southeast Asia's second worst, trailing Vietnam's 16.6 percent drop. Worst-hit on Friday was Malaysia, which fell 1.4 percent to its lowest in more than two weeks. Investors turned cautious amid weaker-than-expected second-quarter results.
"Malaysia has actually outperformed since early August when the market peaked," said regional strategist Chang Chiou Yi of CIMB Securities. "Given the more gloomy global outlook, big banking names have also guided for conservative figures and there have been some downgrades on the street - thus the underperformance," she said. Stocks in Indonesia regained most of their early losses to end nearly flat. Turnover in Jakarta plunged to 0.4 times its 30-day average, the region's lowest, ahead of market holidays next week. Indonesia resumes trading on September 5.
Malaysia's stock market traded a half day on Monday before market holidays and will reopen on Friday. The Philippines was shut on Monday and Tuesday. Singapore is shut on Tuesday. By 0926 GMT, Thai stocks edged up 0.8 percent, recouping a 1.25 percent loss to a two-month low, as dividend announcements by blue chips lured some buyers, led by a 2.6 percent rise in PTT and a 2.03 percent climb in Bangkok Bank. Investor flows tended to favour companies with exposure to domestic consumption such as banks and property stocks. Among rebounding shares, Bank Rakyat Indonesia, the world's biggest micro lender, was up 0.8 percent.
On the week, Thailand's 3.4 percent drop was Asia's worst, ahead of second-worst Malaysia's 2.6 percent loss. The Thai market suffered $1.25 billion in outflows this month to Thursday, erasing $1.26 billion of inflows in July when foreign investors rebuilt Thai stock positions following the July 3 general election.
Outflows from Indonesia rose to $990 million this month to Friday, erasing the $608 million of inflows in July, while the Philippines saw $2.8 million in outflows on Friday, reducing their inflows this month to $31 million, according to Thomson Reuters data. Among weak spots, shares in Malaysian oilfield services provider Bumi Armada fell 7.1 percent in early trade on Friday after the company posted a drop in quarterly profits.
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