SINGAPORE, Jan 27 — All Southeast Asian stocks plunged today, with foreign investors shedding exposure to risky assets, as emerging markets remained under pressure on concerns over US Federal Reserve further tapering its stimulus and fears of a slowdown in China.
Indonesia’s Jakarta Composite Index fell 2.6 per cent to its lowest level since January 10, led by financial stocks.
Foreign investors cut their exposure in the region’s risky assets today. Jakarta saw a net foreign outflow of US$79.93 million (RM267.2 million), while Malaysia suffered net foreign selling of US$100.96 million. Thailand and the Philippines witnessed foreign outflows of US$102.19 million and US$33.99 million, respectively.
“The Fed tapering policy and China’s slowing growth caused investors to lose confidence in emerging markets, especially in Indonesia,” said John Teja, director of Jakarta-based broker Ciptadana Securities.
Fed officials are seen cutting bond-buying by another US$10 billion at their regular two-day policy meeting beginning tomorrow, while investors continued to fret about the impact of tightening credit conditions in China as Beijing seeks to curb growth in high-risk lending.
Malaysian shares fell 1.3 per cent to a 3-1/2-month low, Philippine shares plummeted 1.8 per cent to a near one-week low, and Vietnam index, the best performer in the region so far this year, closed 0.7 per cent weaker on profit-booking in some blue chips.
Singapore share index declined 1.1 per cent to a near five-month low.
Thailand index fell 2 per cent to a near two-week low, led by energy and banks amid lingering political concerns a day after one of the leaders of anti-government protests in Bangkok was shot dead when violence erupted as demonstrators tried to block early voting for an election next week.
Nomura in a research report said the current political tensions in Thailand will only slow, but not derail, the long-term development of the economy. — Reuters
