Indonesia Hits Over 7-wk Low; Thai Down After Weak Exports Data

Bareksa.com - Southeast Asian stock markets were flat to weaker on Monday amid weaknesses in regional currencies, with the Indonesian benchmark hitting its lowest in more than seven  weeks on concerns about political development while Thai shares eased after weak exports data.

Jakarta's composite index (JCI) was nearly flat at 5,133.14 after touching 5,082.73, the lowest since Aug. 8, earlier in the day. Bank Mandiri and Telkom Indonesia led among losers amid  foreign-led selling in large caps.

The Indonesian rupiah hit a seven-month low on worries about political uncertainty and in response to the U.S. dollar's broad strength.

Broker BNI Securities said in a note that the correction was prompted by the weakening rupiah.

Concerns remained about political stability after president-elect Joko Widodo's Indonesian Democratic Party failed to secure the political support needed to scuttle the legislation ending direct elections for governors and mayors.

"Since last week, the JCI has been hit by adverse political news on the parliament approval of legislation to end direct elections to regional posts, which carried over into this week," said Harry Su, head of research at broker Bahana Securities.

Bangkok's SET index eased 0.2 percent, led by a 1 percent loss in Bangkok Bank and a 1.6 percent drop in True Corporation.

The baht earlier fell to 32.35, the lowest since July 9. Thai exports in August fell by the biggest percentage since flooding in late 2011, data showed.

"It is possible that foreign equity inflows will slow in the near-term due to a weaker Thai baht," broker KGI Securities said.

Other markets in Southeast Asia were mostly weaker as political unrest in Hong Kong kept investors cautious. MSCI's broadest index of Asia-Pacific shares outside Japan slid 1.06 percent.

In Manila, telecoms shares led losses, with Globe Telecoms down 4.9 percent, extending a 6.5 percent loss last week due to foreign outflows. (Source : Reuters)