SE Asia Stocks -Malaysia poised for worst drop in 23 months; oil & gas stocks weak

BANGKOK, Dec 1 (Reuters) - Malaysia's benchmark index was

headed for its worst drop in almost 23 months on Monday as

Petroliam Nasional's plan to cut capital expenditure

hit oil and gas shares while falling oil prices triggered

selloffs in energy stocks across the region.

Oil fell more than $2 a barrel to a five-year low in Asian

trade on Monday, extending a steep sell-off after OPEC decided

not to cut production last week, keeping markets well supplied.

Kuala Lumpur's composite index was down 2.3 percent,

on course for its biggest single-day fall since Jan 21, 2013,

having hit 1,778.24 during the session, its lowest since Oct.

17.

Petroliam Nasional (Petronas) said late on Friday that it

will cut capex for next year by 15-20 percent due to falling oil

prices, a move analysts said would hurt earnings of Malaysian

oil and gas services firms relying on Petronas jobs.

Among top losers, shares of Sapurakencana Petroleum

plunged 13.9 percent and shares of UMW Oil and Gas

Corporation slipped 15.2 percent.

In Bangkok, shares of the country's biggest energy firm, PTT

, were down 3.7 percent, while those of its energy

explorer unit PTT Exploration and Production fell 4.1

percent.

The Thai SET index edged up 0.1 percent, trimming

most its early gains. Airline stocks outperformed the broader

market, led by a 3 percent gain in shares of budget carrier Nok

Airlines amid expectations of lower fuel costs.

Bangkok-based Maybank Kim Eng Securities expected crude oil

prices in the world market to stay low for a while, benefiting

Asian economies and increasing the chance for looser monetary

policy, it said in a report.

"Although the energy sector will still be depressed by

plunging oil prices, domestic play-related sectors will benefit

from the downward trend in oil prices," it said.

Data showed Thailand's annual headline inflation fell to a

five-year low of 1.26 percent in November, slightly less than

expected, due to falling oil prices and giving the central bank

leeway to keep interest rates low to support the

economy.

Energy and resource shares were among those actively traded

elsewhere, with Singapore's oilfield service provider Ezion

Holdings Ltd sliding 11.3 percent and Indonesia's

coal miner PT Bumi Resources Tbk down 9 percent.

For Asian Companies click;

For South East Asia Hot Stock reports, click;

SOUTHEAST ASIAN STOCK MARKETS

Change at 0543 GMT

Market Current Prev Close Pct Move

Singapore 3335.56 3350.50 -0.46

Kuala Lumpur 1778.90 1820.89 -2.31

Bangkok 1596.69 1593.91 +0.17

Jakarta 5156.09 5149.88 +0.12

Manila 7333.68 7294.38 +0.54

Ho Chi Minh 570.34 566.58 +0.66

(Reporting by Viparat Jantraprap; Additonal reporting by

Yantoultra Ngui in Kuala Lumpur; Editing by Sunil Nair)