SE Asia Stocks-Thai shares lag amid political worry; Singapore posts best gain in 6 mths

BANGKOK, March 24 (Reuters) - Thai stocks closed at their

two-week lows on Monday amid rising political tensions and

selling led by domestic investors, while the Singapore index

posted its best gain in six months amid buying in recently

battered banking and property shares.

The Thai SET index closed 0.78 percent lower at

1,349.90, its lowest finish since March 10. Consumer and

tourism-related shares such as Charoen Pokphand Foods

and Airport of Thailand were among the top percentage

losers.

The baht bucked the regional trend and fell on

renewed worries about political unrest after the constitutional

court nullified last month's election.

The move increased downside risks to Thailand's economic

growth outlook and heightened the risks of more widespread and

violent protest by anti- and pro-government groups, Moody's

Investors Service said.

"This development is credit negative for Thailand (Baa1,

stable) because the four-month old political crisis could spill

over into the second half of this year," the rating agency said

in a report.

Anti-government demonstrators in Thailand resumed street

protests on Monday after lying low for weeks, piling pressure on

increasingly beleaguered Prime Minister Yingluck Shinawatra, who

is expected to face impeachment within days.

Domestic institutions and retail investors were net sellers

of Thai shares for a combined 1.35 billion baht ($41.70

million), while foreign investors were net buyers of 941 million

baht ($29 million), their first in three sessions, Thomson

Reuters data showed.

Singapore was the bright spot, with the key Straits Times

Index climbing 1.25 percent, its biggest one-day rise

since Sept. 19. DBS Group Holdings and Hongkong Land

Holdings led gainers.

Shares of banks and property firms have been badly hit due

to selling related to concerns about the weak outlook in China.

"The risk is not as bad as people feel and probably the

recent selling due to concerns about China could be overdone...

The buying today should be a combination of short covering on

banking stocks and fresh buying or bottom fishing on banking and

property shares," said an analyst with UOB Kay Hian Research in

Singapore.

Stocks in Malaysia rose to their highest in more

than two weeks, the Philippines ended three sessions of

falls, and Indonesia eked out gains for a second session

amid foreign investors-led buying.

Stock exchange and Thomson Reuters data showed net foreign

buying of 186 million ringgits ($56.22 million) of Malaysian

shares, 307 million pesos ($6.78 million) of the Philippines and

268 billion rupiahs ($23.5 million) of Indonesia.

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SOUTHEAST ASIAN STOCK MARKETS

Change on day

Market Current Prev Close Pct Move

TR SE Asia Index* 402.06 400.06 +0.50

Singapore 3111.83 3073.39 +1.25

Kuala Lumpur 1833.85 1820.48 +0.73

Bangkok 1349.90 1360.50 -0.78

Jakarta 4720.42 4700.21 +0.43

Manila 6400.67 6339.26 +0.97

Ho Chi Minh 607.55 601.75 +0.96

Change on year

Market Current End 2013 Pct Move

TR SE Asia Index* 402.06 388.37 +3.52

Singapore 3111.83 3167.43 -1.76

Kuala Lumpur 1833.85 1866.96 -1.77

Bangkok 1349.90 1298.71 +3.94

Jakarta 4720.42 4274.18 +10.44

Manila 6400.67 5889.83 +8.67

Ho Chi Minh 607.55 504.63 +20.40

* The Thomson Reuters South East Asia Index is a

highly representative indicator of stocks listed in Indonesia,

Malaysia, the Philippines, Singapore, Thailand and Vietnam.

($1 = 3.3085 Malaysian Ringgits)

($1 = 45.3000 Philippine Pesos)

($1 = 11422.5000 Indonesian Rupiahs)

($1 = 32.3725 Thai Baht)

(Reporting by Viparat Jantraprap; Editing by Subhranshu Sahu)