Most Southeast Asian stocks retreat

Most Southeast Asian stock markets retreated on Friday and ended the week little changed as volatility in commodities dragged on sentiment in resource shares, although consumer-related sectors attracted buying interest. Risk aversion remained high because of a string of global factors, including a run of soft US economic data, debate about the US government debt ceiling, problems in Europe regarding Greece and news that Japan was back in recession.
All that suggested stock market sentiment would remain weak in the near term. Thailand and Indonesia both reported a fall in market turnover compared with the 30-day average. Harry Su, head of research at PT Bahana Securities in Jakarta, expected the Indonesian stock market to take its lead from moves in commodities and the performance of global markets including US stocks in the near term.
"The Indonesian stock market will take its cue from other markets next week. News flows on the domestic front have been positive," he said, noting inflation was expected to drop again in May. "So markets should remain well supported unless there are major sell-offs in other regional markets."
Stocks in Singapore , Malaysia , Thailand and the Philippines ended only marginally lower on Friday but Vietnam sank 2.7 percent to a six-month low and lost almost 10 percent on the week, Asia's worst performance. Vietnam's small-cap bourse, the Hanoi Stock Exchange, slid to an all-time low on Friday as liquidity and confidence dwindled, marking another milestone in the country's fall from favour for foreign and domestic investors alike.
Equities in Asia generally posted small gains on Friday. The MSCI index for Southeast Asia was up 0.17 percent and MSCI's index of Asia Pacific shares outside Japan had risen 0.27 percent by 0727 GMT. The earnings outlook for Southeast Asian firms is generally positive. ASEAN 2011 consensus earnings growth is 12.1 percent, Morgan Stanley said in a research note.
"Indonesia and Malaysia saw upward revisions for 2011 earnings by 4 basis points and 72 basis points respectively, while Thailand and Singapore saw downward revisions of 24 basis points and 34 basis points respectively," it said. For the week, Malaysia gained $176 million in inflows, ahead of the $14.3 million to the Philippines, while Indonesia and Thailand posted outflows of $38.96 million and $158 million, respectively, according to Thomson Reuters data and exchanges.
Indonesia's main share index rose 1.1 percent for the week, the best in emerging Asia.
Across the region, sentiment was weak in commodity shares although global oil prices had a modest bounce after recent weakness. Singapore-listed palm oil share Noble Group and refiner Thai Oil each lost over 1 percent.
Investors selectively picked shares that will benefit from growing domestic consumption, seen as defensive stocks against external volatility, dealers said. Indonesia's Astra International, which earns over half of its revenue from auto sales, rose 1.5 percent. CP All, Thailand's largest convenience store chain, climbed 1.2 percent, Metropolitan Bank & Trust Co (Metrobank), the Philippines' second-biggest lender by assets, gained 2.6 percent and Malaysia's RHB Capital rose 1.7 percent.