Southeast Asian stocks were mostly lower on Thursday, underperforming other Asian markets as foreign investors seeking value showed a preference for markets such as China and Hong Kong. Regional markets got an initial lift as global equities rallied but the gains faded towards the close, with Thailand's SET index the worst performer, ending down 1.9 percent.
Jakarta closed little changed while Malaysia fell 0.3 percent. Those losses came as a strong showing for China and South Korea helped the broad MSCI Asia Pacific ex-Japan index post a gain of 0.4 percent. "If there are big redemptions, these are the ones that are going to be taken down," said Tham, adding that Indonesia was probably the most crowded market in terms of foreign ownership and could be most at risk.
Valuations are another concern. Corporate results helped underpin gains in places. Malaysia's Sime Darby, which returned to a profit in its fourth quarter following a dismal performance a year before, rose 1.2 percent. Banks continued to drag Thailand lower, with the sector sub-index down 1.6 percent. The banking index in Thailand has fallen nearly 12 percent this month, retreating from a record high.
Bucking the regional trend, Singapore stocks rose 1.7 percent, with commercial developer Capitamalls Asia the top gainer with an 8.5 percent rise. Commodities group Noble rose 4.8 percent. Southeast Asian stocks have lost much of their recent upward momentum.
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