SE Asia Stocks - Malaysia near 3-week low; Thai property, bank shares up

BANGKOK, March 6 (Reuters) - Malaysia's key stock index fell

to a near three-week low on Friday after worse-than-expected

exports data for January while Thai shares rebounded as

investors bought banks and property stocks before the central

bank's interst rate meeting next week.

The Kuala Lumpur composite index traded down 0.13

percent at 1,803.76, the lowest level since Feb. 16, and taking

its loss on the week to almost 1 percent.

Malaysia's exports slid 0.6 percent in January from a year

earlier, wrongfooting expectations for a rise.

Banking shares, among interest rate-sensitive stocks, were

little changed after the central bank kept its key interest rate

unchanged at 3.25 percent, as expected.

Shares of Public Bank edged up 0.1 percent and

CIMB Group Holdings gained 0.4 percent.

Kuala Lumpur-based broker Affin Hwang Capital said it

expected the policy rate will be kept unchanged in 2015 and

maintained a 'neutral' rating on the Malaysian banking sector

thanks to a muted earnings outlook going into 2015.

"We foresee continuous NIM pressure, further weakening in

loan growth, lacklustre capital market activities and concerns

of asset quality," it said in a report.

Bangkok's SET index edged up 0.2 percent after

Thursday's drop to a six-week closing low, trimming its loss on

the week to 1.9 percent. Gains were led by property developer AP

Thailand and state run Krung Thai Bank.

"Next week, the most important factor could be Thai MPC

decision on March 11, at which the committee may cut policy rate

to shore up domestic economy," broker KGI Securities said in a

report.

The Bank of Thailand said last week its benchmark one-day

repurchase rate of 2.0 percent is already low and

any rate cut may do little to encourage more borrowing for

economic activities.

Most others in the region traded higher with Singapore

, Indonesia and Vietnam set to end the

week with modest gains.

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SOUTHEAST ASIAN STOCK MARKETS

Change at 0642 GMT

Market Current Prev Close Pct Move

Singapore 3418.49 3395.27 +0.68

Kuala Lumpur 1803.76 1806.09 -0.13

Bangkok 1556.80 1553.33 +0.22

Jakarta 5485.09 5450.95 +0.63

Manila 7843.67 7819.04 +0.31

Ho Chi Minh 593.92 596.91 -0.50

(Reporting by Viparat Jantraprap; Editing by Sunil Nair)