http://sg.news.yahoo.com/061002/3/43sbp.htmlMonday October 2, 7:32 PM
SE Asia Stocks-S'pore stocks hit 4-mth highs, Bangkok down
By Ovais Subhani
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SINGAPORE, Oct 2 (Reuters) - Singapore's benchmark index rose to a 4-½ month high on Monday, led by banks, properties and electronics, but Thai stocks hit their lowest level in a week as investors responded to the appointment of a new prime minister.
Singapore's Straits Times Index ended up 1.21 percent at levels not seen since May when the index posted its all-time high of 2,666.33.
Oversea-Chinese Banking Corp jumped 2.3 percent, City Developments 3.7 percent and Venture Corp 4.8 percent.
Brokers said the rally in Singapore was powered by retail traders and some institutional investors taking fresh positions at the start of the new quarter.
However, analysts such as Carmen Lee of OCBC Investment Research said that with the all-time high in sight, increasing the risk of a correction, investors should focus on stocks that offer value.
"Going forward, we believe that stocks offering good value are likely to outperform in the current market ... companies that have the right combination of ingredients to place them in pole positions to grow and continue to deliver good earnings in the years ahead," she said.
By 0906 GMT, Thai stocks were down 0.27 percent as investors gave their first response to Sunday's appointment of retired General Surayud Chulanont as Prime Minister by the country's military leaders who staged a coup against the government of Thaksin Shinawatra last month.
"Foreign investors are still selling Thai shares because they are worried the new government might be overshadowed by the military," said Kosin Sornpaisarn at UOB Kay Hian Securities.
Shares in firms founded by Thaksin continued to fall due to fears of a panel set up by the army to investigate corruption allegations against Thaksin, his family and his cabinet.
Shin Corp , the telecoms conglomerate which made Thaksin a billionaire before his family sold its stake to Singapore state investment firm Temasek [TEM.UL] in January, fell 1.7 percent. Top mobile phone firm Advanced Info Service was down 2.2 percent, Shin Satellite fell 3.4 percent and SC Asset Corp dropped 3.6 percent. Gains in OCBC, the smallest of Singapore's three local banks, were prompted by comments of its chief executive, David Conner, who was quoted by The Business Times as saying that the bank plans to grow its Indonesian business so that it becomes the third growth engine behind Singapore and Malaysia, accounting for 5 to 10 percent of the bank's revenues.
News that Vietnam's central bank has approved the sale of a 10 percent stake in VP Bank to OCBC for $15.66 million also helped investor sentiment.
Kim Eng analyst Geraldine Eu said OCBC, likely to complete the transaction in about a month, would join Standard Chartered Bank , Australia's ANZ and HSBC in acquiring stakes in Vietnamese banks.
DBS Vickers analyst Ai Teng Tan said Venture Corp was benefitting from growing signs of a general recovery in contract electronic makers from around the world.
Malaysian shares recovered from earlier losses to end 0.22 percent higher.
Telecom Digi.Com Bhd rose 4 percent and Malaysia Airport rose 5.9 percent amid talk the country's biggest airport operator could be taken private by its 73 percent owner Khazanah Nasional Bhd.
But a 0.8 percent fall in conglomerate Genting Bhd. and a 0.5 percent drop in electricity distributor Tenaga Nasional capped the market's rise.
Markets elsewhere in Southeast Asia retreated following Friday's losses on Wall Street.
Indonesian stocks were down 0.37 percent, led by a 2.0 percent fall in conglomerate Astra International .
The Philippine market ended down 0.55 percent resuming trade after a long weekend. Markets in Manila were closed on Thursday and Friday due to massive power cuts caused by typhoon Xangsane.
