Southeast Asian stock markets closed weaker on Monday as rising oil prices raised concerns over global economic growth, weighing on how investors feel about the region's emerging markets. Trading volumes were moderate as cautious investors stayed cautious, due to growth worries. Some were focusing on the European Central Bank's second refinancing operation set for Wednesday for more cues.
The Asian markets were mostly down with MSCI's broadest index of Asia Pacific shares outside Japan sliding 1.3 percent, while the MSCI index for Southeast Asia was down 1.4 percent at 1000 GMT. Foreign investors were net sellers in Indonesia with a $54.3 million outflow. Enjoying new inflows on Monday were Thailand ($20.3 million) and Malaysia (51.17 million ringgit, or $16.7 million).
Oil prices held near a 10-month high on Monday due to supply concerns as tensions over Iran's disputed nuclear programme worsened, while the rise in oil weakened the outlook for industrial metals demand and pushed copper futures lower. The Philippines fell 1.9 percent to its lowest close since February 16, Singapore ended 1.1 percent weaker to a three-week low, Thailand closed 1 percent down to its lowest close since February 17 and Indonesia also finished 0.9 percent down, at a near two-month low.
Energy and financials shares led losses in Bangkok. Top oil firm PTT and the state-controlled oil and gas explorer PTT Exploration and Production fell 1.4 percent and 2.2 percent respectively. In Singapore, lack of positive triggers led some investors to take profits ahead of the earnings reports of several large companies, including Noble Group Ltd, Sembcorp Industries Ltd, traders said. Gold and cash were the preferred assets for investment amongst investors, while equities have become the least favoured category, the survey, which measures attitudes towards investment conditions in Singapore, showed.
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