Southeast Asian markets extend losses

Most Southeast Asian stock markets closed weaker on Wednesday in light trading volumes after the Federal Reserve warned that turmoil in Europe poses a big threat to the world's biggest economy. The region's markets, like many others, have been on a downtrend due to concerns over slowing global growth.
There's less appetite for risky assets due to the sovereign debt crisis in the eurozone, which investors fear faces downgrades by rating agencies. Indonesia ended 0.3 percent weaker to a two-week low, Singapore fell 0.5 percent to hit its lowest close since November 25, Malaysia closed 0.2 percent down, and Thailand lost 0.7 percent. Vietnam, the region's smallest bourse, lost 1.1 percent, but the Philippines, bucking the trend, gained 0.1 percent.
Jakarta and Manila saw net outflows of $9.8 million and $1.6 million respectively, while Kuala Lumpur suffered $13.3 million net foreign selling. Except Jakarta and Hanoi, all other markets saw light trade compared with their 30-day average volumes as jitters and the approach of year-end kept many investors to the sidelines. Singapore Telecommunications Ltd and DBS Group Holdings Ltd each fell 0.9 percent, pulling the Singapore market down.
In Bangkok, shares in CIMB Thai Bank surged more than 9 percent then fell to end only 2 percent higher on speculation it may buy a stake in TMB Bank Pcl, Thailand's seventh-largest lender, from the government. Thailand's PTT Exploration and Production Pcl's (PTTEP) outperformed the overall market to closed 1.8 percent up to 172.5 baht as Citi raised its target price to 150 baht from 135 baht.
In Jakarta, a long-awaited land bill, which Indonesian lawmakers are expected to approve on Wednesday, may boost the overall market in 2012 analysts said. Investors hope the bill will speed up land acquisition for government infrastructure projects in Southeast Asia's biggest economy.
"Going into 2012 we remain overweight on banks, consumer, infrastructure and media. Cement and property names are also set to benefit if the land-bill is passed," said Dee Senaratne, head of research at CLSA Jakarta. Its top picks are Bank Rakyat Indonesia, Astra International, Gudang Garam, Indo Tambangraya Megah and Jasa Marga. Analysts in Hanoi said double-digit inflation will be the biggest concern for the stock market in 2012.