SE Asia Stocks-Cautious ahead of BoE decision on interest rates

By Ruchira Kondepudi

July 14 (Reuters) - Southeast Asian stock markets largely

closed lower on Thursday ahead of a policy meeting by the Bank

of England later in the day where it is expected to cut rates to

ward off the risk of a recession following Britain's vote to

leave the European Union.

Most economists polled by Reuters expect the BoE will cut

rates to a record low of 0.25 percent, followed by a

reactivation - probably in August - of the QE bond-buying

programme it adopted as the financial crisis raged in early

2009.

Investors are taking a wait-and-see stance ahead of stimulus

measures that various central banks are expected to roll out

soon, said Grace Aller, an analyst with Manila-based AP

Securities.

While the European Central Bank is expected to keep policy

on hold at its meeting next week, Japanese Prime Minister Shinzo

Abe has called for a fiscal stimulus, expected to reach about 2

percent of GDP, following his recent election victory.

Indonesia led the losers, dropping nearly 1 percent,

hurt by telecom and consumer cyclicals.

Matahari Department Store and Telekomunikasi

Indonesia fell 2.1 percent and 3.5 percent,

respectively.

"It's just healthy profit-taking; there's no fundamental

reason," said Elvira Tjandrawinata, an analyst with Nomura

Indonesia.

"The market needs a breather. Valuations are no longer

cheap, which is probably on expectations that the tax amnesty

will bring in prosperity to the economy..."

Indonesia has launched a tax amnesty programme that the

government, facing a sizable budget shortfall, is counting on to

bring home billions of dollars citizens have parked overseas.

Vietnam shares fell 1.3 percent, dragged down by

financials and consumer non-cyclicals.

Singapore closed marginally lower, before securities

trading was disrupted.

The Singapore Exchange Ltd said securities trading

was suspended just before midday local time due to duplicate

trade confirmation messages being generated.

Thailand and Phillipine shares however bucked

the trend to rise 0.75 percent and 0.15 percent, respectively.

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SOUTHEAST ASIAN STOCK MARKETS

STOCK MARKETS

Change on day

Market Current Previous Pct Move

Close

Singapore 2906.92 2910.65 -0.13

Bangkok 1488.69 1477.61 0.75

Manila 7956.14 7944.02 0.15

Jakarta 5083.539 5133.933 -0.98

Kuala Lumpur 1654.78 1660.39 -0.34

Ho Chi Minh 666.69 675.12 -1.25

Change on year

Market Current End 2015 Pct Move

Singapore 2906.92 2882.73 0.84

Bangkok 1488.69 1288.02 15.58

Manila 7956.14 6952.08 14.44

Jakarta 5083.539 4593.008 10.68

Kuala Lumpur 1654.78 1692.51 -2.23

Ho Chi Minh 666.69 579.03 15.14

(Reporting by Ruchira Kondepudi; Editing by Biju Dwarakanath)