Asia Stocks-Pullback continues; Philippine at 11-week lowPhilippines Markets

BANGKOK, June 5 (IFM-Web Desk) – Southeast Asian stocks mostly fell on Wednesday amid nervousness about the fate of U.S. Federal Reserve’s quantitative easing programme, with Philippine main index extending its losses to an 11-week low and Singapore benchmark at the lowest in three months.The Philippine benchmark index .PSI closed down 1.7 percent at 6,557.89, the lowest close since March 22. The sell-off sent the index to an oversold terrain, with its 14-day relative strength index (RSI) closing at 29.8 on the day.

Singapore’s Straits Times Index .FTSTI slipped 1.5 percent to 3,243.43, the lowest close since March 4. Its 14-day RSI closed below 30, a level indicating shares are oversold.

Regional large caps were among the stocks hit, with Philippine industrial conglomerate Ayala Corp AC.PS, Singapore Telecommunications Ltd STEL.SI and Thailand’s Krung Thai Bank Pcl KTB.BK among heaviest losers.

Some bargain hunting emerged in beaten-down shares such as Indonesia’s PT Indosat Tbk ISAT.JK, which jumped 7.8 percent to 5,500 rupiah. Citi Research said Indosat was ASEAN’s cheapest telecoms stock and was one of the fastest-growing among the ASEAN names.

“A sector rotation from yield to growth names owing to rising bond yields creates an opportunity for Indosat,” it said on Wednesday.

The broker upgraded the stock to “buy” from “neutral”, with the target price of 6,300 rupiahs.

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