Southeast Asian markets: Singapore, Thai stocks pull back; Malaysia outperforms

Singapore and Thailand edged lower on Friday as banks fizzled following recent gains and resource shares fell in line with weak oil prices ahead of US jobs data that could provide a glimpse into the health of global economy. Losses in Singapore and Thailand came in light volume, with market turnover in each well below monthly averages and investors reluctant to increase positions.
Despite flagging sentiment, the region ended the week strongly after month-end buying and as funds re-entered after sell-offs in August on hopes of strong consumption. Among outperformers, Singapore's Straits Times Index posted a 3.5 percent gain on the week, its biggest since March and Southeast Asia's second-best, trailing Vietnam's Ho Chi Minh Stock Exchange index, which surged 7.6 percent, the region's best.
Stocks in Malaysia jumped almost 2 percent on Friday upon resuming trade after a 3-1/2 day break, as Kuala Lumpur caught up with a regional rally. Financial stock CIMB surged 4.7 percent. Trading was light before the US nonfarm payroll report, the only jobs data due before the Federal Reserve holds a two-day meeting. Brokers expect Southeast Asia to rebound in September after tumbling in August when Thai stocks suffered their biggest monthly outflows this year of $1.4 billion while shares in Singapore and Malaysia fell to their lowest level in the year.
Singapore and Thai banks pulled back, with DBS Group Holdings edging down 0.4 percent after gains early in the week on strong loan data and Bangkok Bank lost 0.6 percent, after surging on ratings agency Moody's upgrade. In a research note dated September 1, broker Citi said Singapore's banks offered the best value in Southeast Asia, citing strong loan momentum, albeit with prospects of a third-quarter technical recession.
Southeast Asian banks, excluding Singapore, were expensive compared with North Asia but relatively shielded from weak global growth, offering strong earnings momentum and higher core profitability, it said. Energy shares led losses on the day, with Singapore-listed oil rig builder Keppel Corp down 2.6 percent, Thai PTT Exploration and Production off 3.8 percent, partly on concerns about its capital raising plan.