NEW YORK, May 13 — Most South-east Asian stocks closed lower today, led by Malaysia which posted its slowest quarterly economic growth since 2009, while the Philippine index bounced back from the previous session’s losses.

Malaysia’s economy expanded 4.2 per cent in January-March compared with a year earlier, broadly in line with expectations but down from the 4.5 growth per cent in the previous three months, as exports and domestic demand were weak.

“The balance of risks in 2016 is skewed towards growth disappointment and fiscal slippage, with inflation pressures of second-order concern,” ANZ stated in a note today. 

The FTSE Bursa Malaysia KLCI index closed down 1.26 per cent, driven by basic materials.

Investment bank CIMB Group was the biggest loser with a drop of 5.78 per cent, while oilfield services provider Sapurakencana Petroleum Bhd finished about 3.1 per cent down.

“Structurally, lower oil prices mean that Malaysia will still be confronted with significant growth and fiscal headwinds, with residual concerns about 1MDB,” adds ANZ.

The troubled Malaysian state fund, which is at the centre of a multi-billion-dollar graft scandal, said last month it was in default after missing some bond payments.

In the Philippines, stocks rallied after the country’s central bank left the benchmark interest rate flat at 4 per cent, expecting economic growth to remain strong.

The Philippine main index closed up 1.53 per cent led by industrials.

Ayala Corp closed higher 5.28 per cent, while Petron Corp finished 4.6 per cent up.

“President-elect Rodrigo Duterte disclosed his eight-point economic agenda upon his transition yesterday which has been taken positively by the market,” said Luz Lorenzo, a Maybank KimEng analyst.

The wide-ranging economic agenda includes tax reforms to accelerating infrastructure building to support services for farmers and attracting foreign investments by reducing crime, according to media reports. 

Indonesia fell 0.9 per cent, dragged down by financials and materials, while Thailand’s main index  closed marginally down. — Reuters