Bareksa.com - Indonesian shares edged lower on Thursday as a rally in stocks of large-cap firms receded ahead of the central bank's review on interest rates while shares of large-cap Thai telecoms companies recovered from recent losses.

Bank Indonesia is expected to keep its benchmark policy rate unchanged on Thursday to maintain economic growth amid growing pressure on its exports, a Reuters poll showed.

Brokers expect near term volatility as market players also looked forward to the outcome of a July 9 presidential election.

"Market has been up as a response to Jokowi's rockstar performance in the first debate on 9 June but may turn sideways ahead of next debate on 15 June," said broker Trimegah
Securities in a report.

Jakarta's benchmark composite index was down 0.75 percent, after two sessions of gains to two-week highs driven by foreign inflows.

Foreign investors led the selling on Thursday in recently rallying shares such as Telkom Indonesia and Bank Central Asia, which fell more than 1 percent, Thomson Reuters data shows.

Shares of Astra International, the biggest firm by market value, dropped 1.3 percent as they traded ex dividend.

In Bangkok, shares of top telecoms operator Advanced Info Service rose 0.9 percent and of no. 2 player Total Access Communication edged up 0.4 percent, regaining
some of their recent losses.

Shares of True Corp were flat. They rose about 17 percent over the past three days after a capital raising plan, including a private placement to China Mobile which
analysts said strengthened its finances and competitiveness.

The benchmark SET index was nearly flat at midday.
Other major markets in Southeast Asia were range-bound as Asian stock markets weighed in the risk of higher oil prices due to growing violence in Iraq.

Vietnam's benchmark VN Index rose 0.2 percent, led by gains in banking shares on market expectations the central bank would cut the ceiling on deposit rates.

The Philippine stock market is shut on Thursday for a market holiday and will reopen on Friday.

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SOUTHEAST ASIAN STOCK MARKETS

Change at 0636 GMT

Market Current Prev Close Pct Move
TR SE Asia Index* 426.84 427.46 -0.14
Singapore 3293.90 3290.04 +0.12
Kuala Lumpur 1877.10 1878.38 -0.07
Bangkok 1462.83 1463.71 -0.06
Jakarta 4934.89 4971.95 -0.75
Ho Chi Minh 571.50 570.36 +0.20
* The Thomson Reuters South East Asia Index is a highly representative indicator of stocks listed in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. (Source : Reuters)