Most down, Indonesia Retreats Ahead of Holidays

Bareksa.com - Most Southeast Asian stock markets fell on Friday ahead of holidays in the region, with Indonesia heading for the first weekly loss in July amid a weaker rupiah and outflows in large-caps, while Singapore snapped an eight-session winning streak.

In Jakarta, foreign investors sold shares of banks and index heavyweights such as Astra International before a market holiday next week, while the rupiah inched away from this week's two-month high due to month-end demand for dollars.

"(The selling was) partly because of the holiday but we are also in the second-quarter earnings season at the moment, and results have not been that great," said Harry Su, head of research at broker Bahana Securities in Jakarta.

Shares of PT Bank Mandiri Tbk dropped 2.4 percent after Indonesia's biggest lender by assets reported a rise of 16 percent in first-half net profit, in line with expectations, but flagged smaller loan growth this year.

Indonesia's main index edged down 0.3 percent, and was on track to end the week 0.1 percent lower.

The market could see near-term volatility amid uncertainties involving a new government formation, a court hearing on losing presidential candidate Prabowo Subianto's lawsuit challenging
the result and growing fuel subsidy problems pressuring the country's budget.  

In Singapore, the key index slightly eased after an almost 2 percent rise since July 15. There was selling in recent gainers such as DBS Group Holdings, but strong earnings lifted Keppel Corp.

Singapore will be closed on Monday, Malaysia on Monday and Tuesday and the Philippines on Tuesday.

Thai shares bucked the trend, gaining 0.1 percent. Thai Airways International rose 4.5 percent, building on a more than 7 percent jump on Thursday after the company's board approved a restructuring plan to cut costs. (Source : Reuters)