Most major Southeast Asian stock markets fell on Friday, reversing the previous day’s gains in reaction to a dovish US central bank, but the Singapore benchmark rose to a near two-week high amid buying in select dividend-yielding large caps.

Singapore’s key Straits Times Index traded up 0.6 per cent at 3,406.94, the highest since March 10.

Shares of Singapore Telecommunications, the most actively traded by turnover, gained 1 per cent to their highest since February 27. The index is on track to post a weekly gain of 1.3 per cent after the prior week’s loss.

In Bangkok, investors booked profits in telecoms shares such as Advanced Info Service, pulling the broader SET index 0.9 per cent lower and on track for a weekly drop of 1.5 per cent, a fifth successive week of declines.

Brokers said foreign flows remained supportive. “Less concern about an imminent Fed hike and the start of European QE began to support equity flows and should help limit the downside of SET,’’ strategists at broker KGI Securities wrote in a report.

Stocks in Indonesia edged down 0.4 per cent, erasing some of Thursday’s 0.75 per cent rise but still heading to end the week 0.1 per cent higher.

Philippine shares eased 0.2 per cent, on track for a slide of 0.2 per cent on the week. Malaysia was down 0.4 per cent, its first fall in four sessions, and is set to close up about 1 per cent on the week.

The pullback in the region came on the back of weak US stocks overnight, while Asian stocks stalled on Friday as Federal Reserve-inspired gains petered out. MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed after rallying 1.3 per cent the previous day.

Related Topics