SET flat, other SE Asia stocks mixed ahead of Fed meeting

SET flat, other SE Asia stocks mixed ahead of Fed meeting

Stock investors wait for any hints on the number of remaining rate hikes in store for 2018 in Federal Reserve Chairman Jerome Powell's commentary after his first policy meeting on Wednesday. (Reuters photo)
Stock investors wait for any hints on the number of remaining rate hikes in store for 2018 in Federal Reserve Chairman Jerome Powell's commentary after his first policy meeting on Wednesday. (Reuters photo)

The Stock Exchange of Thailand index ended flat, while other Southeast Asian stocks ended mixed on Tuesday, as investors braced for new Federal Reserve Chairman Jerome Powell's first policy meeting starting later in the day.

The SET main index closed little changed, in trade worth 49.22 billion baht, with gains in materials stocks being largely negated by weakness in financials. Bangkok Bank Plc fell almost 1%.

The Philippine Stock Exchange PSEI Index ended 2.1% lower, posting its lowest close since mid-September, after declining as much as 2.7%.

The Philippine economy is more exposed to US rate hikes with current account and budget deficits. Inflation also quickened to 3.9% in February, the fastest pace in more than three years under a revised price index.

"I think what is alarming the region right now is the Fed is open to raising its benchmark rates probably four times (this year). It is a story of a shift of funds from emerging markets back to the US given the improved economic outlook," said Lexter Azurin, a senior equity analyst at AB Capital.

As of Monday, foreign investors had offloaded Philippine equities worth a net US$195 million so far this month, according to exchange data.

The Fed is widely expected to raise rates on Wednesday, with market participants looking for any hints on the number of remaining rate hikes in store for 2018 in Powell's commentary the next day.

Financials and real estate stocks were the top losers with Ayala Corp declining 7.2% and BDO Unibank Inc shedding 2.7%.

Indonesian shares dropped 0.7% to their lowest close since late December with Telekomunikasi Indonesia down 4.2%.

Southeast Asian stock markets

 

 

Current

Previous

% change

Thailand

1,799.84

1,799.79

0.00

Indonesia                

6,243,57

6,289.57

-0.73

Malaysia                

1,856.39

1,847.94

+0.46

Philippines                 

 8,059.60

8,235.54

-2.14

Singapore                 

3,513.31

3,498.29

+0.43

Vietnam       

1,159.39

1,159.22

+0.01


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