* Philippines extends losses to a fourth session
* Indonesian stocks pressured by financials, consumer
sectors
* Thai shares flat after data shows decline in Aug exports
By Anushka Trivedi
Sept 20 (Reuters) - Southeast Asian stock markets dropped on
Friday, with the Philippine index leading losses as many foreign
investors pulled money out of emerging markets following a spike
in geopolitical tensions.
An attack on Saudi Arabia's key oil facilities last weekend
heightened tensions between the United States and Iran, as the
former blamed Tehran for the attacks and added that potential
retaliation measures would be implemented if needed.
The attacks and subsequent exchange between both countries
have spurred a bout of volatility in the markets, with most
Southeast Asian equities heading for a weekly decline.
The Philippine bourse .PSI was set to end lower for a
fourth straight session. Financials dominated losses in the
benchmark, with heavyweight SM Prime Holdings Inc SMPH.PS
shedding 1.3%.
"There is fear of further tensions in the Middle East and
that's why emerging markets such as the Philippines have been
suffering in terms of money outflows. So most of the funds are
going back into safe assets and that has been a big impact to
the performance of PSI," Rachel Cruz, research analyst, AP
Securities.
Indonesian stocks .JKSE were little changed as gains were
capped by a decline in banking and consumer sectors.
The country's central bank on Thursday slashed interest
rates for a third straight month, while also relaxing some
lending rules in a bid to stimulate Southeast Asia's biggest
economy marred by the prolonged U.S.-China trade tussle and a
slowdown in global demand. However, analysts at Citibank expect the measures to aid
only marginally, as a drop in revenue of commodity exporters
could lead to negative spill-overs to the domestic economy.
"This will cast clouds on company capex plans in affected
sectors, as well as on banks' risk appetite for lending,"
analysts said.
Lenders Bank Rakyat Indonesia (Persero) Tbk PT BBRI.JK and
Bank Mandiri (Persero) Tbk PT BMRI.JK faltered over 1% each,
whereas poultry feed maker Charoen Pokphand Indonesia Tbk PT
CPIN.JK shaved off 2.4% from the index.
Malaysian shares .KLSE extended declines to a third
session, dented by consumer and telco sectors.
A continued weakness in palm oil prices hurt stocks such as
Kuala Lumpur Kepong Bhd KLKK.KL , which dropped to a nearly
four-year low, while telecom services provider Maxis Bhd
MXSC.KL lost 1.8%.
Thai shares .SETI were trading flat shortly after
government data showed the country's customs-cleared exports in
August had declined 4% year-over-year.
Meanwhile, Singapore shares .STI traded a tick higher.
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SOUTHEAST ASIAN STOCK MARKETS as at 0422 GMT
Change on the day
Market Current Previous close Pct Move
Singapore 3160.32 3158.8 0.05
Bangkok 1636.2 1640.66 -0.27
Manila 7890.83 7911.32 -0.26
Jakarta 6219.077 6244.47 -0.41
Kuala Lumpur 1591.4 1596.28 -0.31
Ho Chi Minh 996.29 997.1 -0.08
Change so far in 2019
Market Current End 2018 Pct Move
Singapore 3160.32 3068.76 2.98
Bangkok 1636.2 1563.88 4.62
Manila 7890.83 7,466.02 5.69
Jakarta 6219.077 6,194.50 0.40
Kuala Lumpur 1591.4 1690.58 -5.87
Ho Chi Minh 996.29 892.54 11.62