January 14, 2008
BANGKOK (AFP) - Thai share prices closed 0.67 percent lower on Monday amid sustained fears among investors over a possible slowdown in the US economy caused by the subprime mortgage crisis, dealers said.
They said investors were also keeping a wary eye on Thailand's domestic politics, as allies of ousted prime minister Thaksin Shinawatra struggle to form a coalition government despite their win in last month's elections.
The Stock Exchange of Thailand (SET) composite index fell 5.32 points to 791.15 and the blue-chip SET-50 lost 3.87 points to 573.05.
Losers outnumbered gainers 212 to 98, with 115 stocks unchanged on turnover of 1.15 billion shares worth 10.89 billion baht (330.12 million dollars).
The Thai baht closed at 33.13-15 the dollar, compared to 33.14-16 last Friday. Against the euro, the Thai unit was quoted at 49.32-34 from 48.77-49.00.
"The market has been down today, like other regional markets, because investors are still worried over a slump in the US economy," said Kavee Chukitkasem, assistant managing director of Kasikorn Securities, adding that most sales were in the energy sector.
Aside from concerns over the US economy, political uncertainty in Thailand still plays a major role in the domestic bourse as investors wait to see what the new government will look like, three weeks after the general elections.
"Investors are just waiting to see some progress in Thai politics, which is still unclear, and tomorrow is going to be the first day of hearings at the Supreme Court on a complaint against People Power Party," Kavee said.
The People Power Party, which was set up by allies of deposed premier Thaksin Shinawatra, won nearly half of the 480 seats in parliament in the December 23 polls, the first election since last year's coup ousting Thaksin.
But the Election Commission appointed by the military has opened dozens of vote fraud investigations that threaten the party's ability to form a coalition government.
Other complaints against PPP have been sent to the Supreme Court, which has been asked to invalidate the election results.
Thailand's biggest energy firm PTT lost 6.00 baht to 320.00, and its subsidiary PTT Exploration and Production increased 2.00 to 153.00. But energy firm Banpu fell 2.00 to 392.00.
The kingdom's top lender Bangkok Bank remained unchanged at 113.00.
Thai Airways International was also unchanged at 33.00, and Thailand's biggest mobile phone operator, Advanced Info Service, rose 2.50 to 98.50.
