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SE Asia Stocks: Malaysia, Singapore enter oversold territory

SE Asia Stocks: Malaysia, Singapore enter oversold territoryBANGKOK: Southeast Asian stock markets fell on Monday, with stocks in Malaysia and Singapore drifting into oversold territory after late selling, while Thai shares failed to hold on to early gains and ended lower amid weak economic outlook.

The Kuala Lumpur composite index shed 1.5 percent to the lowest close since June 2012, sending its 14-day Relative Strength Index (RSI) to an oversold level of 22.1. A level of 30 or lower indicates an oversold market.

The depreciating ringgit, in part due to China’s yuan devaluation, has spurred selloffs in local stocks, taking the index’s year-to-date loss in US dollar term to 23.5 percent, Asia’s worst performer.

Singapore was down 1.5 percent, with its 14-day RSI slipping into an oversold position of 25.9. The Philippine main index dropped 1 percent to the lowest close since June 2015.

The Thai SET index ended the day 0.4 percent lower. The National Economic and Social Development Board (NESDB) on Monday lowered its 2015 economic growth forecast to 2.7-3.2 percent from 3.0-4.0 percent seen in May.

Fund flows were mixed, with foreign investors selling stocks in Malaysia and the Philippines worth a net 236 million ringgit ($ 57.5 million) and 408 million peso ($ 8.8 million) while buying Thai shares for a net 1.57 billion baht ($ 44.4 million), stock exchange data showed.

Vietnam’s benchmark VN Index ended down 2.7 percent on Monday, posting its biggest single-day percentage fall in more than three months, led by banks after the central bank stepped up reforms in a small lender.

Indonesia was closed on Monday for a market holiday, resuming on Tuesday.

Copyright Reuters, 2015

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