Most Southeast Asian stock markets fell on Wednesday as investors cashed in on rallying markets, with the Indonesian index reversing from a record on Tuesday, but Thai shares eked out gains amid bargain hunting in tourism-related stocks.

The Jakarta composite index traded down 1.06 per cent after a 1.5 per cent gain in the previous session. Astra International, the country’s second-biggest firm by market capitalisation, dropped 4.4 per cent, with retail investors selling after a rally on Tuesday to a record high.

Data released early on Wednesday showed Indonesia’s annual inflation rate in March increased slightly to 6.38 per cent, close to the projection in a Reuters poll.

In Bangkok, the key SET index was up 0.5 per cent, extending the gains of the previous two days.

Tourism-related shares such as Airports of Thailand and airline firm Asia Aviation were among those actively traded.

“The lifting of martial law and the lowering of the NYMEX price by $1/bbl will also regain investor confidence to tourism-related sectors and limit their downside risks,’’ broker Maybank Kim Eng Securities said in a report.

Thai Prime Minister Prayuth Chan-ocha said on Tuesday he had asked for King Bhumibol Adulyadej’s permission to lift martial law, which has been in place since before a coup 10 months ago. He did not give a timeframe for when the law would be lifted.

Stocks in Singapore, Malaysia and Vietnam traded lower after an end-quarter rally on Tuesday.

Asian stocks sagged on Wednesday, taking their lead from weaker US shares.

In the Philippines, the key index edged up 0.13 per cent, heading for a sixth straight day of gains and surpassing a record close of 7,940.49 on Tuesday, thanks to its economic outlook.

The International Monetary Fund on Wednesday slightly upgraded its forecast for Philippine economic growth to 6.7 per cent this year from 6.6 per cent, due in part to higher state spending and strong private construction activity.

Related Topics
comment COMMENT NOW