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SE Asia Stocks-Indonesia plunges nearly 2% on tobacco stocks

Published 09/16/2019, 06:15 PM
Updated 09/16/2019, 06:20 PM
SE Asia Stocks-Indonesia plunges nearly 2% on tobacco stocks
STI
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JSH
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DBSM
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JKSE
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KLSE
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SETI
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PSI
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GGRM
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AP
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ICT
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PTT
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HMSP
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* Weak China data, oil rally weigh on SE Asia
* Philippines reverses course to end higher
* Malaysian markets closed for holiday

By Anushka Trivedi
Sept 16 (Reuters) - Indonesian shares slumped nearly 2% on
Monday, dragged by tobacco stocks after the government announced
a steep price hike, while most other Southeast Asian markets
traded in a thin range as weak China data and a surge in oil
prices stoked slowdown worries.
The Indonesian government said late on Friday it would raise
the minimum price of cigarettes across categories by an average
of 35% from Jan. 1 next year and increase the excise tax on
tobacco products by 23%, as part of its efforts to reduce
smoking rates. Top cigarette maker Hanjaya Mandala Sampoerna Tbk PT
HMSP.JK plunged over 18%, its sharpest in two decades, while
Gudang Garam Tbk PT GGRM.JK dived more than 20.5%, its biggest
since 1994.
The benchmark Jakarta stock index .JKSE ended 1.8% lower,
posting its lowest close in over one month and extending losses
into a third session.
A bigger-than-expected drop in August exports and sharp
decline in imports also weighed on the market. Meanwhile, other Southeast Asian markets were subdued as
fresh economic data out of China signalled increasing weakness
in an economy lashed by trade headwinds and soft domestic
demand.
Industrial production grew at the weakest pace in 17-1/2
years, while retail sales growth came in below expectations.
Crude oil prices surged as a drone attack on Saudi Arabia's
key oil facilities fanned supply shortage concerns and chances
of long-term geopolitical tensions amid a global economic slump.
O/R
Singapore stocks .STI , which are heavily exposed to the
Chinese economy, fell 0.2%, dragged by financial and industrial
sectors.
Index heavyweights Jardine Strategic Holdings Ltd JSH.SI
and DBS Group Holdings Ltd DBSM.SI shed 0.7% and 0.4%,
respectively.
Philippine stocks .PSI reversed course to close slightly
higher as investors made some market-on-close orders, said
Rachel Cruz, a research analyst with AP Securities.
"People at this point are tentative and would rather
increase their exposure to defensive stocks," Cruz said.
International Container Terminal Services Inc ICT.PS
jumped 4.4%, while electricity retailer Aboitiz Power Corp
AP.PS rose 3.6%.
Thai stocks .SETI ended largely flat, with state-run oil
and gas giant PTT PCL PTT.BK rising 3.3% to an over six-week
high.
Malaysian equity markets .KLSE were closed for a holiday.

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SOUTHEAST ASIAN STOCK MARKETS
Change on the day
Market Current Previous close Pct Move
Singapore 3203.93 3211.49 -0.24
Bangkok 1662.93 1661.96 0.06
Manila 7996.9 7992.32 0.06
Jakarta 6219.435 6334.843 -1.82
Ho Chi Minh 989.86 987.22 0.27

Change so far in 2019
Market Current End 2018 Pct Move
Singapore 3203.93 3068.76 4.40
Bangkok 1662.93 1563.88 6.33
Manila 7996.9 7,466.02 7.11
Jakarta 6219.435 6,194.50 0.40
Ho Chi Minh 989.86 892.54 10.90

(Editing by Subhranshu Sahu)

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