SE Asia Stocks-Jakarta down after parliament ends direct elections; others mixed

Sept 26 (Reuters) - Indonesian stocks ended at a more than

one-week low on Friday, with heavy foreign outflow after its

parliament approved legislation to end direct elections to

regional posts, while other Southeast Asian markets ended mixed.

The Jakarta Composite Index ended 1.3 percent weaker

at its lowest close since Sept. 16 on concerns over political

stability after president-elect Joko Widodo's Indonesian

Democratic Party failed to secure the political support needed

to scuttle the legislation.

The index, the worst performer on the week, touched a

seven-week low earlier in the day after Indonesia's parliament

approved a measure ending direct elections for governors and

mayors, a move president-elect Joko Widodo said was a "big step

back" for the country.

"It reflects that the opposition coalition is very solid,

which could be a problem if the new government wants to pass a

new economic policy," said Arief Budiman, an analyst with

Ciptadana Securities in Jakarta.

However, he said the market can take some comfort in the

fact that the government does not need to pass fuel subsidy

policy through the parliament.

The Asian Development Bank's downward revision of the

country's 2014 economic growth to 5.3 percent from 5.7 percent

also weighed on sentiment and the bourse suffered a net $118.13

million foreign outflow.

Financial stocks led the fall, with Bank Mandiri

and Bank Rakyat Indonesia losing 4.5 percent and 3.9

percent, respectively.

Malaysia fell 0.1 percent, the Philippines

slipped 0.5 percent, and Vietnam's benchmark VN Index

surrendered its early gains to end slightly weaker at 0.02

percent.

Singapore closed nearly steady at 0.04 percent

gain.

Thailand, the only gainer on the week, closed 0.5

percent firmer despite the central bank's warning that the

country's pivotal exports will not grow at all this year.

However, the Bank of Thailand (BOT) maintained that the economy

can still grow 1.5 percent in 2014 assuming the government can

jack up spending in the last quarter.

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SOUTHEAST ASIAN STOCK MARKETS

Change on day

Market Current Prev Close Pct Move

Singapore 3292.21 3290.99 +0.04

Kuala Lumpur 1840.50 1843.11 -0.14

Bangkok 1600.16 1591.99 +0.51

Jakarta 5132.56 5201.38 -1.32

Manila 7261.30 7294.21 -0.45

Ho Chi Minh 604.98 605.10 -0.02

Change on year

Market Current End 2013 Pct Move

Singapore 3292.21 3167.43 +3.94

Kuala Lumpur 1840.50 1866.96 -1.42

Bangkok 1600.16 1298.71 +23.21

Jakarta 5132.56 4274.18 +20.06

Manila 7261.30 5889.83 +23.29

Ho Chi Minh 604.98 504.63 +19.89

(1 US dollar = 12,020.0000 rupiah)

(Reporting by Shihar Aneez ib Colombo and Fransiska Nangoy in

Jakarta; Editing by Anand Basu)